Nurses willing to spend three years working in a nursing home in a rural or short-staffed area can now get up to $50,000 from the federal government and the states.
The Centers for Medicare & Medicaid Services on Thursday, Oct. 23, announced Nurses for Nursing Homes, a $275 million initiative that offers up to $40,000 in student loan repayment and a $10,000 stipend to registered nurses and licensed practical or vocational nurses who take qualifying nursing home jobs. CMS expects it to support more than 4,000 nurses and nursing students.
The money does not come from taxpayers in the usual sense. It comes from civil monetary penalties that CMS and states have collected from nursing homes that broke federal rules. CMS is putting in $100 million, and states have committed at least another $175 million. All 50 states and the District of Columbia are taking part.
“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,” HHS Secretary Robert F. Kennedy Jr. said in the announcement.
Who qualifies for Nurses for Nursing Homes?
Applicants need an active RN or LPN/LVN license when they start the job. They must work an average of at least 30 hours a week at a qualifying Medicare- or Medicaid-certified nursing home and commit to three years there.
Nurses with qualifying student loans can get both the loan repayment and the stipend, no matter when they graduated. Federal Direct, Stafford, Perkins and consolidation loans for nursing school count, as do private and school loans for nursing education. Parent PLUS loans and credit cards do not. Nurses without student debt can still get the $10,000 stipend if they graduated in the past two years.
The program is aimed at new recruits, not nurses already in the field. Anyone who worked in a nursing home within 60 days before opening an application is not eligible. There is one exception: during the first 90 days, from Oct. 26, 2026, to Jan. 24, 2027, nurses who started at an eligible nursing home between July 28 and Oct. 25 can apply, with payments prorated.
Which nursing homes are eligible?
Every rural nursing facility in the country qualifies, CMS said. Beyond those, the agency picked areas with the worst ratio of population to registered nurses, with input from states.
CMS chose not to open the program to every low-staffed nursing home. In its FAQ, the agency said a home can be short-staffed because of budget decisions, corporate culture or management choices, not just a lack of nurses nearby. “If all nursing homes were eligible, then applicants could gravitate to more attractive areas,” it wrote, leaving rural areas behind.
A limited number of state nursing home inspector jobs also qualify.
How do nurses apply, and when is the money paid?
Nurses and students can open an account at NursesforNursingHomes.cms.gov, which lists open jobs at eligible homes. They apply to the nursing home directly, through its normal hiring process, then come back with an offer letter or pay stub to finish the application. Nursing students can start before they graduate.
CMS says most complete applications are reviewed within 30 business days. Payments go straight to the nurse every quarter, after CMS confirms the 30-hour weekly average. The payments are taxable and reported on Form 1099-NEC, with no tax withheld.
Applications are open through 2026 and 2027, but the money is first-come, first-served. Once a state’s share runs out, no more nurses will be enrolled there.
Why does nursing home staffing matter so much?
Staffing is the measure most closely linked to good outcomes in nursing home care, CMS said, and it is built into the agency’s Five-Star Quality Rating System. Rural homes have had a particularly hard time hiring nurses.
“We’re supporting families who want their loved ones to receive quality care in nursing homes,” CMS Administrator Dr. Mehmet Oz said.
Staff are only part of the picture. Facilities are also dealing with aging equipment, a problem that got more urgent this month when Medline pulled its beds from the market. HNC’s guide for facilities replacing Medline beds covers what to do now. For families caring for a parent at home instead, home medical equipment and mobility aids can make daily care safer.
Key takeaways
- CMS and the states launched the $275 million Nurses for Nursing Homes initiative on Oct. 23, 2026, aiming to bring more than 4,000 nurses into long-term care.
- Eligible RNs and LPNs/LVNs can get up to $40,000 in student loan repayment and a $10,000 stipend for three years of work at a qualifying nursing home.
- All rural nursing homes qualify, plus homes in areas with the worst nurse shortages.
- The money comes from penalties paid by nursing homes and is handed out first-come, first-served by state.
Frequently asked questions
How much can nurses get from Nurses for Nursing Homes?
Up to $50,000: as much as $40,000 in student loan repayment plus a $10,000 stipend, paid quarterly over a three-year commitment at a qualifying nursing home.
Can nursing students apply?
Yes. Students can open an account and start an application before graduating, but they must earn an RN or LPN/LVN license and get hired by a qualifying nursing home to complete it.
Are the payments taxable?
Yes. CMS reports the payments on Form 1099-NEC and does not withhold taxes, so nurses must report them and pay any tax owed.
When does the program start?
CMS announced it on Oct. 23, 2026. Applications are accepted through 2026 and 2027, and nurses hired at eligible homes between July 28 and Oct. 25, 2026, can apply during the first 90 days, from Oct. 26, 2026, to Jan. 24, 2027.
