JFAC advances one-time and ongoing payments to rural nursing loan-repayment fund after transfer motion fails in Senate committee

The Joint Finance-Appropriations Committee on March 12 debated and then approved actions to ensure continuing payments under the rural nursing loan repayment program established by House Bill 213 (2023).

Background: House Bill 213 established a five-year rural nursing loan repayment fund. The enabling statute and original fiscal note provided a cash transfer of $250,000 to fund year-one awards, with further sums expected in later years. Committee materials showed $2,250,000 remained available in the general fund that could be transferred to the dedicated rural nursing loan repayment fund to preserve cash for the program’s life.

What the committee did - A motion to transfer the remaining $2,250,000 from the general fund to the dedicated rural nursing loan repayment fund failed in the Senate committee (combined recorded result: Senate 5 ayes, 4 nays, 1 absent; House 6 ayes, 3 nays, 1 absent; combined total 11 ayes, 7 nays, 2 absent). Because the Senate did not vote in the affirmative, that motion failed and will be transmitted to the Senate for further handling as described by committee procedure. - After deliberation, the committee approved a one-time FY2025 supplemental appropriation of $375,000 from the rural nursing loan repayment fund to allow the department to issue year-two awards in the current fiscal year. The FY2025 one-time motion passed on record with a combined committee tally of 12 ayes, 6 nays, 2 absent/excused. - The committee also approved an ongoing FY2026 appropriation of $625,000 from the rural nursing loan repayment fund. That motion passed on record: combined total 12 ayes, 6 nays, 2 absent/excused.

Discussion highlights - Supporters argued the program implements policy already enacted by the Legislature and signed by the governor; nurses who were eligible for loan repayment reported they had not received scheduled payments, prompting the supplemental request. - Opponents and some members said other state and federal programs (including scholarship or federal incentives) overlap with loan-repayment efforts and urged lawmakers to consider program consolidation rather than continuing parallel funding streams.

Votes and outcomes (recorded in committee) - Transfer of $2,250,000 from general fund to the rural nursing loan repayment dedicated fund: motion failed in Senate committee; combined tally 11 ayes, 7 nays, 2 absent/excused. Outcome: failed in committee; sent to Senate as noted. - FY2025 one-time addition of $375,000 from the rural nursing loan repayment fund: passed; combined tally 12 ayes, 6 nays, 2 absent/excused. - FY2026 ongoing addition of $625,000 from the rural nursing loan repayment fund: passed; combined tally 12 ayes, 6 nays, 2 absent/excused.

What the actions mean - The one-time and ongoing appropriations give the department authority to make year-two payments and to continue the program at the ongoing level the committee approved. The failed transfer leaves a separate cash-transfer action unresolved in the Senate committee; the committee recorded that disposition and will communicate the difference in outcomes in the usual cross-chamber process.

Sources: Legislative Services Office presentation; Representative Furness (motion maker); committee roll-call votes recorded in the March 12 JFAC transcript.