HB 1676 — An Act establishing the Nursing Shortage Assistance Program; and imposing duties on the Department of Labor and Industry.

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
 1   Establishing the Nursing Shortage Assistance Program; and
 2      imposing duties on the Department of Labor and Industry.
 3      The General Assembly of the Commonwealth of Pennsylvania
 4   hereby enacts as follows:
 5   Section 1.   Short title.
 6      This act shall be known and may be cited as the Nursing
 7   Shortage Assistance Program Act.
 8   Section 2.   Definitions.
 9      The following words and phrases when used in this act shall
10   have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Applicant."    An entity that applies for a grant under
13   section 3.
14      "Department."    The Department of Labor and Industry of the
15   Commonwealth.
16      "Educational institution."    An entity licensed by the
17   Department of Education to award a degree in nursing that
 1   prepares students to become registered nurses.
 2      "Hospital."    As defined in section 802.1 of the act of July
 3   19, 1979 (P.L.130, No.48), known as the Health Care Facilities
 4   Act.
 5      "Nursing degree."    A degree issued by an educational
 6   institution for completion of a nursing program accredited by
 7   the Pennsylvania State Board of Nursing.
 8      "Partner hospital."    A hospital that has entered into a
 9   contractual relationship with a qualified nursing servicer and
10   meets all of the following:
11          (1)     Provides loan repayment assistance to nurses
12      employed by the hospital.
13          (2)     Agrees to provide non-State sourced matching funds
14      for nurse loan repayment assistance equal to at least 100% of
15      the grant amount made available by the qualified nursing
16      servicer.
17      "Program."    The Nursing Shortage Assistance Program
18   established under section 3.
19      "Qualified nursing servicer."        An entity that does all of the
20   following:
21          (1)     Contracts with multiple educational institutions,
22      prospective nursing students and hospitals in a manner that
23      promotes greater access to education and career
24      opportunities.
25          (2)     Maintains a place of business in this Commonwealth.
26          (3)     Contracts with multiple hospitals within this
27      Commonwealth to coordinate agreements between prospective
28      nursing students and hospitals in a manner that facilitates
29      the repayment of student loan expenses incurred by the
30      prospective nursing students.

20250HB1676PN2045                    - 2 -
 1            (4)   Has experience in supporting educational
 2      institutions, including marketing, recruiting, student
 3      support, clinical placement, learning design and application
 4      of technology.
 5      "Recipient."      An applicant that has been awarded a grant
 6   under section 3.
 7   Section 3.     Nursing Shortage Assistance Program.
 8      (a)   Establishment.--The Nursing Shortage Assistance Program
 9   is established within the department. The program shall provide
10   grants to qualified nursing servicers to assist nursing students
11   with securing postgraduation employment and the repayment of
12   student loan expenses incurred while obtaining a degree in
13   nursing from educational institutions located within this
14   Commonwealth.
15      (b)   Application.--A qualified nursing servicer may apply to
16   the department for a grant under this section. The application
17   shall be in a form and manner determined by the department,
18   which, at a minimum, shall include all of the following:
19            (1)   The name and address of the applicant.
20            (2)   The name and address of the partner hospital that is
21      providing employment opportunities to prospective nurses.
22            (3)   The number of prospective nurses that will receive
23      loan repayments from the grant if awarded to the qualified
24      nursing servicer.
25      (c)   Awarding of grants.--
26            (1)   All applications received during an application
27      period shall be reviewed and evaluated by the department. In
28      awarding a grant under this section, the department shall
29      consider all of the following:
30                  (i)   The number of timely and complete applications

20250HB1676PN2045                      - 3 -
 1            received by the department during the application period.
 2                  (ii)    The anticipated number of students that would
 3            receive loan repayments under the grant application.
 4                  (iii)    The anticipated number of students of each
 5            nursing degree type that would receive loan repayments
 6            under the grant application.
 7                  (iv)    The anticipated geographic distribution of
 8            students receiving loan repayments under the grant
 9            application.
10                  (v)    The plans for ongoing support to maximize the
11            chances of success for the nurses once employed.
12            (2)   Upon determining that the applicant has met all
13      program requirements, the department may approve a grant
14      application.
15      (d)   Grant agreements.--If the department approves an
16   application under subsection (c), the department and the
17   recipient shall enter into a grant agreement, which, at a
18   minimum, shall include all of the following:
19            (1)   The name and address of the partner hospital that is
20      partnering with the recipient to administer the program
21      funded under the grant.
22            (2)   The number of prospective nurses that will receive
23      tuition reimbursements under the grant.
24            (3)   A commitment by the partner hospital to use all
25      matching funds first before applying State grant funds when
26      repaying tuition expenses incurred by nurses who become
27      employees of the partner hospital.
28      (e)   Award.--Upon execution of the grant agreement required
29   by subsection (d), the department shall award the applicant a
30   grant.

20250HB1676PN2045                       - 4 -
 1   Section 4.     Restrictions.
 2      (a)   Limitations.--The following limitations shall apply to
 3   grant funds awarded under section 3:
 4            (1)   A recipient may not use any grant money awarded for
 5      administrative costs.
 6            (2)   A subgrantee partner hospital may not use any grant
 7      money made available from a recipient for administrative
 8      costs.
 9            (3)   A subgrantee partner hospital shall use all
10      available matching funds before utilizing grant funds for
11      nurse loan repayment assistance.
12            (4)   An individual nurse employed by a partner hospital
13      may not receive more than $10,000 per year, or $30,000 in the
14      aggregate, of grant money for loan repayment assistance for a
15      degree in nursing.
16      (b)   Unencumbered funds.--Any grant funds that remain
17   unencumbered after three years shall be returned to the
18   Commonwealth by the recipient.
19   Section 5.     Department guidelines, application period and grant
20                  awards.
21      (a)   Written guidelines.--Within 30 days of the effective
22   date of this subsection, the department shall develop written
23   guidelines for the implementation of this act.
24      (b)   Application period.--In any fiscal year in which funds
25   are made available for the program, the department shall open an
26   application period of not more than 30 days to receive
27   applications under section 3.
28      (c)   Grant awards.--For the fiscal year beginning July 1,
29   2025, the department shall make grant awards under section 3
30   within 30 days of the close of the application period for that

20250HB1676PN2045                    - 5 -
 1   fiscal year.
 2   Section 6.   Report to General Assembly.
 3      No later than December 31, 2026, and each year thereafter,
 4   the Secretary of Labor and Industry shall submit a report to the
 5   General Assembly summarizing the effectiveness of the grants
 6   provided by this act. The report shall include the names of all
 7   partner hospitals involved in the program as of the date of the
 8   report and the number of potential nurses that would receive
 9   tuition reimbursement under the program. The report shall be
10   submitted to the chairperson and minority chairperson of the
11   Appropriations Committee of the Senate, the chairperson and
12   minority chairperson of the Appropriations Committee of the
13   House of Representatives, the chairperson and minority
14   chairperson of the Labor and Industry Committee of the Senate
15   and the chairperson and minority chairperson of the Labor and
16   Industry Committee of the House of Representatives.
17   Section 7.   Effective date.
18      This act shall take effect in 60 days.




20250HB1676PN2045                   - 6 -