JFAC splits on rural nursing loan repayment funding; $375,000 supplemental and $625,000 ongoing approved after split votes

The Joint Finance-Appropriations Committee on March 12 considered several budget actions to support the rural nursing loan repayment program created in House Bill 213 (2023). The program assists nurses working in rural areas with student loan repayment and was designed as a five-year program with initial cash transferred at enactment.

A motion to transfer the remaining $2,250,000 from the general fund into the dedicated rural nursing loan repayment fund and to make a larger ongoing appropriation did not secure the Senate committee's affirmative majority and failed on the joint roll call (the committee reported the motion "failed and will be sent to the Senate"). The committee then proceeded with separate, narrower motions.

Representative Furness moved and the committee approved a 1-time FY2025 supplemental appropriation of $375,000 from the rural nursing loan repayment fund to allow year-two awards to be issued. That motion carried in both chambers of the joint committee with a final combined tally reported as 12 ayes, 6 nays, 2 absent/excused (Senate showed dissent earlier but the committee proceeded with the House handling as allowed by committee procedure). Representative Furness later moved an ongoing FY2026 appropriation of $625,000 from the same dedicated fund; that motion passed in joint committee with a total of 12 ayes, 6 nays, 2 absent/excused and will carry a due-pass recommendation.

During debate, Representative Tanner and other members noted that multiple scholarship and federal programs now exist to support nurses and expressed concern about program redundancy; Tanner said he was voting no on some motions because "we have too many different funding mechanisms" and suggested consolidating programs. Representative Furness and supporters argued the nurses who applied for the loan repayment had not been "double dipping" and that the program is statutory policy that the Legislature must fund. Senator Ward Engelking noted JFAC's responsibility: "We are required to fund things that are in policy. We don't get to pick and choose which things we fund if they're in policy."

Committee staff explained the original fiscal design: the program had $250,000 in cash transferred at creation to fund year one awards, but year two was not funded in the last session; the supplemental and ongoing appropriations are intended to restore the fund to support the multi-year rollout. The packet also notes the program sunsets after five years and the department would request a base reduction at program end.

Because an earlier motion to transfer larger cash failed in the Senate committee, the House indicated it would forward the committee-approved actions and a letter to the Senate for further handling; procedures differed between chambers on how to carry a failed motion forward. The approved supplemental and ongoing appropriations will be reflected in the committee's due-pass recommendations and are subject to standard budget execution rules.