CMS and states offer up to $50,000 for a three-year nursing-home commitment

A $275 million CMS-and-state initiative offers eligible nurses and nursing students up to $40,000 in student loan repayment and/or a $10,000 stipend for a three-year commitment at a qualifying nursing home. CMS expects Nurses for Nursing Homes to support more than 4,000 nurses nationwide, with all 50 states and the District of Columbia participating, the agency said.

Why it matters

CMS says staffing is a critical component of nursing-home quality and is included in its Five Star Quality Rating System. The initiative directs support to licensed nurses and nursing students who provide hands-on care to residents, with all rural nursing facilities eligible and additional facilities in higher labor-shortage areas. CMS and states are funding the program through civil monetary penalties collected from nursing homes.

Program details and funding

Oct 23, 2026. CMS announced Nurses for Nursing Homes as a nationwide initiative funded by $275 million in civil monetary penalties collected by CMS and states from nursing homes. CMS committed $100 million, and states committed at least an additional $175 million. The agency said the initiative is expected to support more than 4,000 nurses and nursing students nationwide.

Eligible participants may qualify for up to $50,000 in total support, according to the CMS frequently asked questions. The benefits may include up to $40,000 in student loan repayment and/or a $10,000 stipend. Payments are made directly to participants quarterly after CMS verifies that they worked an average of 30 hours per week over the quarter. Participants who receive loan repayment are responsible for using those payments toward their own student loan debt.

The CMS release says all rural nursing facilities are eligible, along with additional facilities in higher labor-shortage areas. CMS's Frequently Asked Questions say a limited number of state agency nursing-home inspector roles also qualify. CMS says it selected facilities based on available funding for each state and an estimate of how many nurses could be recruited. It designated all rural facilities, requested input from states on other areas, and ranked remaining areas using the ratio of the general population of core-based statistical areas to registered nurses in those areas.

Who can qualify

Participants must hold an active RN or LPN/LVN license when they begin employment and work at a qualifying nursing home. The CMS release says they must work at least 30 hours per week and commit to three years of service at an eligible Medicare-, Medicaid-, or dually certified long-term care facility. CMS's Frequently Asked Questions say applicants still in nursing school or not yet employed at a qualifying facility may open an account and begin an application, but must meet the remaining requirements to qualify.

To receive loan repayment, participants need eligible student loan debt. CMS's Frequently Asked Questions list Federal Direct Loans, Federal Stafford Loans, Federal Perkins Loans, qualifying Federal Consolidation Loans, private student loans from accredited lenders for nursing education, and institutional loans from nursing schools. It excludes home equity loans used for education, loans for non-nursing education programs, Parent PLUS loans that are not in the participant's name, and personal loans or credit cards.

Nurses without eligible student loan debt may qualify for the $10,000 stipend if they graduated within the past two years and meet the employment and service requirements. CMS's Frequently Asked Questions say the two-year period is calculated from the date of graduation. The CMS release says applicants generally must not have worked in a nursing home for at least 60 days before opening an application account and starting an application. For the first 90 days, from Oct. 26, 2026, to Jan. 24, 2027, an exception applies to RNs and LPNs/LVNs who began work at an eligible nursing home between July 28, 2026, and Oct. 25, 2026.

Applying and service terms

Applicants can review eligibility, open an account, find positions at eligible facilities, and begin an application through the Nurses for Nursing Homes website. CMS says it verifies identity, nursing license, employment history, and loan documents when applicable. Applicants apply directly to nursing homes through the facility's own hiring process; CMS and its workforce partners are not involved in hiring. After receiving an employment offer, applicants return to the program site to complete the application.

CMS's Frequently Asked Questions say loan repayment and stipend payments are reported on Form 1099-NEC, and taxes are not withheld. Participants can transfer to another qualifying facility with CMS approval; payments pause between jobs and resume after employment begins at the new facility. If a participant takes an approved leave, payments pause and the service commitment is extended by the time away. CMS's Frequently Asked Questions say applications are accepted throughout 2026 and 2027, with incentives available on a first-come, first-served basis while funding remains for each state.