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JFAC splits on rural nursing loan repayment funding; approves supplemental and ongoing payments after transfer motion fails in Senate committee
Summary
The Joint Finance-Appropriations Committee on March 12 approved supplemental and ongoing funding for the rural nursing loan repayment program to correct a funding lapse, after a separate motion to transfer the program’s remaining cash balance failed to receive an affirmative Senate committee vote.
The Joint Finance-Appropriations Committee on March 12 considered multiple corrective actions for the rural nursing loan repayment program created by House Bill 213 (2023), which provides loan repayment assistance to nurses working in rural areas.
Frances Lippitt, budget and policy analyst with Legislative Services, explained the program design and cash flow: the original bill funded year one with $250,000 in cash transferred into a dedicated fund but did not appropriate year-two cash. Ms. Lippitt told the committee the staff recommendation included (1) a transfer of $2,250,000 from the general fund to the Rural Nursing Loan Repayment Fund to set aside cash for the program life, (2) a $375,000 supplemental appropriation for FY2025 to cover year-two awards this year, and (3) an ongoing $625,000 appropriation for future years with a base reduction at sunset.
Representative Furness moved to transfer the remaining $2,250,000 into the dedicated fund but that motion failed to win an affirmative vote in the Senate panel of the joint committee; the chair announced "the motion has failed and will be sent to the Senate." After that, the committee approved two separate actions under the committee's House procedures: a one-time $375,000 addition for FY2025 and an ongoing $625,000 addition for FY2026 from the rural nursing loan repayment fund.
Debate and rationale: supporters said the funding corrects an inadvertent lapse so nurses who have applied will receive awards, and noted the program had been enacted by the Legislature and signed by the governor. Opponents, including Representative Tanner, said overlapping state and federal programs and new scholarship initiatives mean the loan-repayment program is redundant and should be reviewed in policy committees rather than fully funded now.
Votes and outcome: the initial motion to transfer $2.25 million failed when the Senate side did not record an affirmative majority. The committee then approved the $375,000 one-time appropriation (committee total reported as 12 ayes, 6 nays, 2 absent/excused) and later approved the ongoing $625,000 appropriation for FY2026 (committee total reported as 12 ayes, 6 nays, 2 absent/excused). The chair instructed the matter would be documented and forwarded as required.
Next steps: the Department of Health and Welfare will use the authorized funds to issue year-two awards for the rural nursing loan repayment program; any larger cash-transfer actions may be subject to further action by the Senate or additional committee work.
