Pennsylvania House Bill HB1676

Pennsylvania 2025-2026 Regular Session

• Introduced: 6/27/25
• Refer: 6/27/25
• Refer: 7/1/25
• Report Pass: 7/7/25

Caption

Establishing the Nursing Shortage Assistance Program; and imposing duties on the Department of Labor and Industry.

Summary

HB1676 establishes the Nursing Shortage Assistance Program within the Pennsylvania Department of Labor and Industry. The program would provide grants to qualified nursing servicers that partner with hospitals and educational institutions to help nursing students secure postgraduation employment and repay student loan expenses incurred while earning a nursing degree in Pennsylvania. The bill defines key terms such as qualified nursing servicer, partner hospital, and nursing degree, and requires the department to create written guidelines, open application periods, and award grants to eligible applicants. To qualify, a nursing servicer must contract with multiple schools and hospitals, maintain a business presence in Pennsylvania, and have experience supporting educational institutions and student success. Grant applications must identify the partner hospital, the number of students expected to receive loan repayment assistance, and other program details. The department is directed to consider the number of applicants, the number and type of nursing students served, geographic distribution, and plans for ongoing support when awarding grants. The bill also requires annual reporting to the General Assembly on program effectiveness and participating hospitals.

Impact

The bill would create a new state grant program and impose administrative duties on the Department of Labor and Industry to design guidelines, review applications, award grants, and report annually to the legislature. It would affect nursing schools, hospitals, and entities that coordinate student loan repayment assistance by setting eligibility standards, funding rules, and limits on how grant money may be used. The bill also caps individual loan repayment assistance at $10,000 per year and $30,000 total, prohibits use of grant funds for administrative costs, and requires unused funds to be returned after three years.

Sentiment

The available voting history suggests the bill has support but not unanimous backing. It advanced from the House Labor and Industry Committee and later from House Rules on party-line or closely divided votes, indicating that many members viewed it as a policy response to the nursing workforce shortage while others remained unconvinced. No committee transcripts are available, so the recorded votes are the main indicator of sentiment.

Contention

The main points of contention likely involve whether the state should fund this kind of workforce incentive program, how grant dollars should be distributed, and whether the structure sufficiently protects against administrative overhead. The bill requires hospitals to provide non-state matching funds equal to at least the grant amount, which may raise concerns about feasibility for smaller hospitals or uneven access across regions. Another possible issue is the use of a private or quasi-private qualified nursing servicer to administer the program, as well as whether the grant caps and reporting requirements are adequate to ensure accountability and measurable workforce results.