President Donald Trump announced a $275 million initiative on Friday, October 23, 2026, aimed at recruiting and retaining thousands of nurses for nursing homes across the United States. The program, titled "Nurses for Nursing Homes," offers financial incentives to licensed nurses and nursing students who commit to working in facilities located in rural areas or regions with significant labor shortages.
The initiative is a collaborative effort between the federal government and state leadership. The Centers for Medicare & Medicaid Services (CMS)—the federal agency that manages healthcare programs for seniors and low-income individuals—has committed $100 million to the fund. Participating states and the District of Columbia have committed at least an additional $175 million. The program is funded entirely through civil monetary penalties collected from nursing homes, rather than through new taxpayer appropriations.
Under the program's terms, eligible registered nurses (RNs), licensed practical nurses (LPNs), or licensed vocational nurses (LVNs) can receive up to $40,000 in student loan repayment or a $10,000 stipend. To qualify, participants must work at least 30 hours per week at an eligible Medicare- or Medicaid-certified long-term care facility for a three-year term. CMS Administrator Dr. Mehmet Oz stated that the initiative is designed to help residents form "deep bonds with caregivers" while providing "financial relief" to nursing professionals.
A person entering the program would notice a change in their financial obligations, specifically the reduction of student debt or the receipt of a stipend, starting after their application is processed and their three-year commitment begins. The initiative specifically targets facilities that struggle with staffing, meaning families with relatives in rural or high-need nursing homes may see a change in the consistency of hands-on care. The program requires that applicants not have worked in a nursing home for at least 60 days prior to applying, creating a specific entry window for those new to the long-term care sector or returning after a hiatus.
The use of civil monetary penalties to fund workforce development sets a precedent for how fines collected from healthcare providers can be reinvested into the industry’s labor supply. While Senate Democrats, including Sen. Ron Wyden (D-Ore.), have previously called for a "system-level investment" in long-term care infrastructure, this specific grant program is currently the primary federal mechanism for addressing these shortages. The application period for the first phase of the initiative opened on October 26, 2026, and an exception for those who recently started working at eligible facilities remains in effect through January 24, 2027. Potential applicants can manage their accounts and search for qualifying positions through the official CMS program website.