North Carolina 2025-2026 Regular Session

North Carolina House Bill H396

Introduced
3/13/25  

Caption

Nursing Fellows & Curric. Support Funds/WSSU

Summary

House Bill 396 establishes a new Nursing Fellows Program at Winston-Salem State University (WSSU) to recruit, prepare, and support nursing students who are pursuing a Bachelor of Science in Nursing or a Master of Science in Nursing Education. The program would provide forgivable loans to selected students, with the goal of increasing the number of nurses and nursing instructors serving in North Carolina, especially in areas with the greatest workforce need. The bill also directs WSSU and the State Education Assistance Authority to administer the program jointly, with the School of Health Sciences dean responsible for selection criteria, recipient selection, and recruitment efforts. The bill creates a dedicated Nursing Fellows Program Trust Fund and appropriates $1.4 million in recurring General Fund money to establish the program for fiscal year 2025-26. It sets out how funds may be used, including loan awards, administrative costs, mentoring and coaching, and extracurricular enhancement activities. It also requires annual reporting to the Joint Legislative Education Oversight Committee on recipient demographics, placement and repayment outcomes, mentoring support, and employer outcomes. In addition, the bill appropriates $100,000 in recurring funds to the UNC Board of Governors for WSSU to provide mentoring, coaching, and curriculum-support services for nursing students. The bill would amend state law in Chapter 116 to add a new Part 3A governing the Nursing Fellows Program and to authorize the State Education Assistance Authority to collect repayments for outstanding Nursing Fellows loans. It also establishes detailed loan terms, including interest, forgiveness tied to service as a nurse or nurse instructor in North Carolina, and repayment timelines if service obligations are not met. The program is scheduled to begin with applications for the 2026-27 academic year, with initial selection criteria and applications due in late 2025 and initial awards by April 1, 2026. The general sentiment reflected by the bill itself is strongly supportive of workforce development in nursing, with an emphasis on recruitment, retention, and support for students at WSSU. Although there are no committee transcripts or recorded votes provided, the structure and language of the bill suggest a policy goal of expanding the nursing pipeline and strengthening nursing education capacity in the state. The bill’s tone is affirmative and programmatic rather than controversial, focusing on targeted investment in a historically Black university and in a high-need profession. Potential points of contention could include the use of recurring General Fund dollars, the concentration of benefits at one university, and the administrative complexity of a new forgivable-loan program with service requirements and reporting obligations. Some may also scrutinize the selection standards, the effectiveness of loan forgiveness as a retention tool, or whether the program should be expanded statewide rather than limited to WSSU. However, no explicit opposition or debate is documented in the materials provided.

Impact

The bill would add a new statutory program in Chapter 116 for nursing forgivable loans at Winston-Salem State University and would expand the State Education Assistance Authority’s loan collection authority to include the new program. It creates a new trust fund, sets eligibility, award, forgiveness, repayment, and reporting rules, and appropriates $1.4 million in recurring funds for the program plus $100,000 in recurring support for nursing curriculum services at WSSU. The measure primarily affects WSSU, nursing students, nursing graduates, and nursing instructors who may receive or repay forgivable loans under the new program.

Sentiment

Based on the bill text, the overall sentiment is positive and supportive of nursing education and workforce development. The legislation is framed as a targeted investment to recruit strong candidates, support their training, and encourage service in North Carolina, particularly in underserved areas and in nursing education roles. No committee discussion or vote history is provided, so there is no recorded public debate to indicate formal support or opposition beyond the bill’s affirmative policy design.

Contention

The main likely areas of contention are fiscal and structural rather than ideological: the bill uses recurring state funds, creates a new administrative framework, and directs resources specifically to WSSU rather than a broader statewide program. Critics might question whether the forgivable-loan model is the best use of public dollars, whether the program’s benefits are too narrowly targeted, and whether the reporting and service-forgiveness structure will be effective in addressing nursing shortages. Supporters would likely emphasize the need for more nurses and nurse educators, the workforce pipeline, and the value of investing in WSSU as a training institution.

Companion Bills

NC S297

Same As Nursing Fellows & Curric. Support Funds/WSSU

Similar Bills

No similar bills found.