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PRINTER'S NO. 2045
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1676
Session of
2025
INTRODUCED BY KOSIEROWSKI, GUENST, ISAACSON, GUZMAN, WAXMAN,
HILL-EVANS, PROBST, HOWARD, BRENNAN, MAYES, GIRAL, SANCHEZ,
DONAHUE AND RIVERA, JUNE 27, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 27, 2025
AN ACT
Establishing the Nursing Shortage Assistance Program; and
imposing duties on the Department of Labor and Industry.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Nursing
Shortage Assistance Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." An entity that applies for a grant under
section 3.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Educational institution." An entity licensed by the
Department of Education to award a degree in nursing that
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prepares students to become registered nurses.
"Hospital." As defined in section 802.1 of the act of July
19, 1979 (P.L.130, No.48), known as the Health Care Facilities
Act.
"Nursing degree." A degree issued by an educational
institution for completion of a nursing program accredited by
the Pennsylvania State Board of Nursing.
"Partner hospital." A hospital that has entered into a
contractual relationship with a qualified nursing servicer and
meets all of the following:
(1) Provides loan repayment assistance to nurses
employed by the hospital.
(2) Agrees to provide non-State sourced matching funds
for nurse loan repayment assistance equal to at least 100% of
the grant amount made available by the qualified nursing
servicer.
"Program." The Nursing Shortage Assistance Program
established under section 3.
"Qualified nursing servicer." An entity that does all of the
following:
(1) Contracts with multiple educational institutions,
prospective nursing students and hospitals in a manner that
promotes greater access to education and career
opportunities.
(2) Maintains a place of business in this Commonwealth.
(3) Contracts with multiple hospitals within this
Commonwealth to coordinate agreements between prospective
nursing students and hospitals in a manner that facilitates
the repayment of student loan expenses incurred by the
prospective nursing students.
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(4) Has experience in supporting educational
institutions, including marketing, recruiting, student
support, clinical placement, learning design and application
of technology.
"Recipient." An applicant that has been awarded a grant
under section 3.
Section 3. Nursing Shortage Assistance Program.
(a) Establishment.--The Nursing Shortage Assistance Program
is established within the department. The program shall provide
grants to qualified nursing servicers to assist nursing students
with securing postgraduation employment and the repayment of
student loan expenses incurred while obtaining a degree in
nursing from educational institutions located within this
Commonwealth.
(b) Application.--A qualified nursing servicer may apply to
the department for a grant under this section. The application
shall be in a form and manner determined by the department,
which, at a minimum, shall include all of the following:
(1) The name and address of the applicant.
(2) The name and address of the partner hospital that is
providing employment opportunities to prospective nurses.
(3) The number of prospective nurses that will receive
loan repayments from the grant if awarded to the qualified
nursing servicer.
(c) Awarding of grants.--
(1) All applications received during an application
period shall be reviewed and evaluated by the department. In
awarding a grant under this section, the department shall
consider all of the following:
(i) The number of timely and complete applications
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received by the department during the application period.
(ii) The anticipated number of students that would
receive loan repayments under the grant application.
(iii) The anticipated number of students of each
nursing degree type that would receive loan repayments
under the grant application.
(iv) The anticipated geographic distribution of
students receiving loan repayments under the grant
application.
(v) The plans for ongoing support to maximize the
chances of success for the nurses once employed.
(2) Upon determining that the applicant has met all
program requirements, the department may approve a grant
application.
(d) Grant agreements.--If the department approves an
application under subsection (c), the department and the
recipient shall enter into a grant agreement, which, at a
minimum, shall include all of the following:
(1) The name and address of the partner hospital that is
partnering with the recipient to administer the program
funded under the grant.
(2) The number of prospective nurses that will receive
tuition reimbursements under the grant.
(3) A commitment by the partner hospital to use all
matching funds first before applying State grant funds when
repaying tuition expenses incurred by nurses who become
employees of the partner hospital.
(e) Award.--Upon execution of the grant agreement required
by subsection (d), the department shall award the applicant a
grant.
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Section 4. Restrictions.
(a) Limitations.--The following limitations shall apply to
grant funds awarded under section 3:
(1) A recipient may not use any grant money awarded for
administrative costs.
(2) A subgrantee partner hospital may not use any grant
money made available from a recipient for administrative
costs.
(3) A subgrantee partner hospital shall use all
available matching funds before utilizing grant funds for
nurse loan repayment assistance.
(4) An individual nurse employed by a partner hospital
may not receive more than $10,000 per year, or $30,000 in the
aggregate, of grant money for loan repayment assistance for a
degree in nursing.
(b) Unencumbered funds.--Any grant funds that remain
unencumbered after three years shall be returned to the
Commonwealth by the recipient.
Section 5. Department guidelines, application period and grant
awards.
(a) Written guidelines.--Within 30 days of the effective
date of this subsection, the department shall develop written
guidelines for the implementation of this act.
(b) Application period.--In any fiscal year in which funds
are made available for the program, the department shall open an
application period of not more than 30 days to receive
applications under section 3.
(c) Grant awards.--For the fiscal year beginning July 1,
2025, the department shall make grant awards under section 3
within 30 days of the close of the application period for that
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fiscal year.
Section 6. Report to General Assembly.
No later than December 31, 2026, and each year thereafter,
the Secretary of Labor and Industry shall submit a report to the
General Assembly summarizing the effectiveness of the grants
provided by this act. The report shall include the names of all
partner hospitals involved in the program as of the date of the
report and the number of potential nurses that would receive
tuition reimbursement under the program. The report shall be
submitted to the chairperson and minority chairperson of the
Appropriations Committee of the Senate, the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives, the chairperson and minority
chairperson of the Labor and Industry Committee of the Senate
and the chairperson and minority chairperson of the Labor and
Industry Committee of the House of Representatives.
Section 7. Effective date.
This act shall take effect in 60 days.
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