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Committee restores and funds rural nursing loan repayment after notice of missed awards
Summary
After members raised that year-two loan repayments had not been disbursed, the committee approved supplemental and ongoing transfers to the rural nursing loan repayment fund and appropriations to deliver year-two awards and fund the program for remaining years.
The Joint Finance-Appropriations Committee approved supplemental and ongoing funding steps for the rural nursing loan repayment program established in House Bill 213 (2023) after hearing that Year 2 awards had not been distributed.
Legislative Services Office staff explained the program was designed as a five-year initiative with an initial transfer of $250,000 to fund Year 1. Because no additional cash was transferred for Year 2, the department lacked authority to make Year 2 payments. Committee members heard testimony that nurses expecting repayment did not receive it and asked for correction.
The committee approved a one-time supplemental appropriation of $375,000 for FY2025 to enable Year 2 awards and an ongoing FY2026 appropriation of $625,000 from the rural nursing loan repayment dedicated fund to fund future years of the program. Both motions were discussed at length; some members argued the state already has multiple programs and federal funding streams that address workforce shortages, and they opposed adding permanent appropriations without consolidating funding mechanisms. Supporters argued the program implements existing policy enacted by the Legislature and signed into law and that eligible nurses were not receiving their pledged payments.
Roll calls recorded in the hearing show mixed outcomes during the session: an initial motion to transfer $2,250,000 cash to the dedicated fund and to create an ongoing appropriation failed to pass in one committee vote and the matter was routed according to inter-committee procedures. Subsequent separate actions to provide a one-time $375,000 FY2025 appropriation and an ongoing FY2026 appropriation of $625,000 from the dedicated rural nursing loan repayment fund passed the joint committee roll calls and were announced to carry due-pass recommendations.
The committee instructed the staff that, because the program sunsets after five years, the department will be responsible for requesting a base reduction in fiscal year 2029 to remove the appropriation at the program's end.
