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By Suzanne Blake
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Thousands of nurses could receive up to $40,000 toward their student loans under a new federal initiative to address staffing shortages at nursing homes across the country.
The Centers for Medicare & Medicaid Services announced Friday a $275 million initiative called Nurses for Nursing Homes, which will offer financial incentives to registered nurses and licensed practical or vocational nurses in exchange for three years of work at qualifying nursing homes.
Eligible participants can receive up to $40,000 in student loan repayment and a $10,000 stipend, meaning some nurses could potentially receive as much as $50,000 in total financial support.
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“President Trump is strengthening the nursing workforce that millions of older Americans rely on every day,” said HHS Secretary Robert F. Kennedy, Jr in a statement. “This initiative will recruit and retain thousands of nurses, expand care in rural and high-need communities, and create new pathways into long-term care careers. We are putting resources directly behind the nurses who care for our seniors and strengthening the quality, stability, and dignity of nursing home care across America.”
Why It Matters
The new program targets two problems: the financial burden facing some nurses who borrowed to pay for their education and persistent staffing challenges in the country's nursing homes.
Under the new program, 100 percent of rural nursing facilities are eligible, along with additional facilities located in areas experiencing higher labor shortages.
Although nursing home employment has been recovering, the sector was still 26,500 workers below its pre-pandemic employment level as of December 2025. The American Health Care Association report, citing Bureau of Labor Statistics data, also said nursing homes added more than 40,700 workers during 2025.
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What To Know
CMS is attempting to direct the new incentives specifically toward communities where recruitment is difficult, rather than making every nursing home equally eligible.
An eligibility list released by CMS included just under 9,300 nursing homes, roughly 63 percent of skilled nursing facilities nationwide, according to McKnight's Long-Term Care News.
“CMS is trying to make nursing home jobs more attractive in places where recruiting nurses has been more difficult,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “Turning money collected from nursing home penalties into incentives for nurses is an interesting approach.”
Who Qualifies for $40,000 in Student Loan Repayment?
Under the CMS rules, participants must meet several requirements to receive payments.
They must:
- Hold an active registered nurse (RN), licensed practical nurse (LPN) or licensed vocational nurse (LVN) license when beginning qualifying employment.
- Work an average of at least 30 hours per week at a participating facility.
- Commit to three years of service at an eligible facility.
- Have qualifying student-loan debt to receive the loan-repayment benefit. Those without qualifying student-loan debt must have graduated within the previous two years to qualify for the stipend.
- Meet restrictions concerning previous nursing-home employment. Generally, applicants cannot have worked at a nursing home or qualifying state agency during the 60 days before opening an application account.
However, there is an exception during the program's first 90 days. Between October 26, 2026, and January 24, 2027, RNs and LPNs/LVNs who started working at an eligible nursing home between July 28 and October 25 may still qualify.
A limited number of state-agency nursing home inspector positions can qualify as well.
Some question the Trump administration’s push to help current and future nurses battling student loan debt based on its prior exclusion of graduate nursing programs from what is considered a ‘professional degree.’
There is a massive nursing shortage causing significant stress across the industry, according to what I have heard from associates of nursing boards. “Incentives could help push more nurses toward rural and underserved communities, but that doesn’t resolve the overall industry shortage,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
“It seems a bit counter to what the current administration is suggesting, as we are seeing a nationwide nursing shortage, but at the same time, the Department of Education is attempting to exclude graduate nursing programs from its definition of professional degree programs for federal student loan purposes.”
Under President Trump's 2025 One Big Beautiful Bill Act, new federal student loan limits distinguish between ordinary graduate programs and designated professional degree programs.
The American Nurses Association and nursing education groups have pushed back against the rule, arguing that putting advanced nursing programs in the lower graduate-loan category could make programs for nurse practitioners and other advanced nursing careers harder to finance.
Can Nursing Students Apply?
Nursing students can apply, but they won't start receiving the incentives simply by enrolling in nursing school.
CMS said nursing students can open an account and begin their application before graduating. Before they can qualify for payments, however, they must graduate, obtain an active RN or LPN/LVN license, secure qualifying employment and satisfy the other program requirements.
“The quarterly payments give nurses a reason to stay through the 3 year commitment. But there's a financial catch. These payments are taxable, taxes aren't withheld, and nurses receiving loan repayment money are responsible for applying it to their student debt,” Ryan said.
“That's an important distinction when someone sees a headline promising up to $50,000. This can help nursing homes compete for staff, especially in rural areas. But money only solves part of the problem.”
How Much Money Can Nurses Receive?
Eligible nurses can receive up to $40,000 toward qualifying student loan debt.
But the maximum benefit can actually be higher.
CMS said eligible participants may qualify for a maximum of $50,000 in support, consisting of up to $40,000 in loan repayment and/or a $10,000 stipend. The benefits will be paid in quarterly installments while the nurse remains eligible and employed as required by the program.
Nurses without qualifying student loans may still be able to receive the stipend if they graduated within the previous two years and satisfy the other requirements.
How to Apply
Nurses and nursing students can apply through the official Nurses for Nursing Homes website.
It is currently a three-step process: prospective participants first check their eligibility, then submit an online application, and, after satisfying the requirements, receive their benefits while maintaining qualifying employment.
CMS said the application itself takes about 15 minutes and involves verification of identity, employment or facility of interest, and loan documentation where applicable.
Mehmet Oz, administrator of CMS, said the incentives are designed to benefit nurses as well as nursing-home residents and their families.
"When we offer student loan repayment through Nurses for Nursing Homes, we're not just giving nurses and nursing students future financial relief; we're supporting families who want their loved ones to receive quality care in nursing homes," Oz said.
What Happens Next
Applications for the Nurses for Nursing Homes initiative are opening as CMS and states begin the nationwide $275 million effort. The program is expected to provide assistance to more than 4,000 nurses.
However, the larger implications of how the nursing industry will be affected is not yet clear.
“I don’t think the money alone will have much impact,” Thompson said. “The larger concern is making it more difficult for individuals to enter or advance within an industry already facing significant shortages, especially given the fact that many are feeling the sting of failed promises as certain policies and expectations are being changed mid-career.”
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas
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