Baltimore, Maryland — The federal effort to get more nurses into America’s nursing homes just got a major financial shot in the arm. The Centers for Medicare & Medicaid Services announced Monday that its Nursing Home Staffing Campaign has grown to more than $200 million — more than doubling its original size — with states contributing funds alongside the federal government.
CMS Administrator Dr. Mehmet Oz confirmed the expanded scope in remarks tied to the campaign’s latest push. “Every governor, all 50, engaged us to contribute money so all of us can train more nurses designed for nursing home staffing, especially in rural areas,” Oz said. “And it’s gonna work.”
How the Money Will Flow
The campaign draws from a combination of federal dollars and state reinvestment of civil monetary penalties — fines collected from nursing homes found out of compliance. CMS posted an updated Notice of Funding Opportunity in February, opening applications for organizations that want to serve as financial incentive administrators, or FIAs. The federal piece alone totals up to $80 million across as many as 15 cooperative agreements, with individual awards ranging from $1.76 million to $20 million.
Applications close March 27, 2026. CMS expects to select the FIAs by summer 2026, with the earliest program launch set for July 1, 2026.
The incentives are aimed directly at registered nurses and licensed practical nurses willing to commit to nursing home work. Eligible nurses can receive up to $40,000 in loan repayment and a $10,000 stipend in exchange for a three-year commitment to a qualifying nursing home or state inspection agency. The FIAs will distribute the funds, verify work status, and coordinate with facilities to fill open positions.
CNA Pipeline Also in the Mix
Beyond the RN and LPN incentives, the campaign also includes streamlined pathways for becoming a certified nurse aide. That piece is designed to make entry-level nursing home careers more accessible — offering paid on-the-job training and connecting prospective workers directly to state CNA programs.
It’s a two-track approach: bring experienced nurses in at the top while building a new generation of direct care workers from the ground up.
A Long-Running Crisis
Staffing shortages have shadowed the nursing home industry for years, worsening during the pandemic and recovering only slowly since. Workforce concerns consistently rank as the top challenge cited by both residents and facility staff. The expanded campaign is the most significant federal financial commitment yet — and notably, it doesn’t come with the regulatory pressure of the now-repealed staffing mandate.
The initiative also addresses the shortage of nurses working for state inspection agencies — a less-visible but critical gap, since understaffed survey teams mean slower oversight and longer wait times for facilities to get reviewed.
For operators watching the budget picture closely, the campaign arrives at a complicated moment. As industry reports have noted, long-term care providers face a workforce crisis that pay alone can’t fix — retention, training, and working conditions all matter. But a $200 million push to reduce nursing loan debt and add stipends is the kind of direct relief providers have asked for, and it’s now real.
