The Centers for Medicare & Medicaid Services has launched a $75 million fund to train, recruit and retain nursing home staff, a move aimed at easing chronic shortages that have dogged the sector since the pandemic. The three-year initiative will pay for tuition, certification programs and retention bonuses for certified nursing assistants, licensed practical nurses and registered nurses.
CMS formalized the program in a Federal Register notice on Oct. 27, with applications set to open Dec. 1. Initial payments are expected in January 2026. States are encouraged to add matching dollars, which could lift the total pot to $100 million or more, according to agency materials.
Announcing the effort, the CMS administrator said the campaign is designed to address a shortage touching every state and to support caregivers on the front lines. “This isn’t just about numbers; it’s about dignity for our seniors and fair pay for our heroes in long-term care,” the official said during a recent briefing.
What the fund covers
CMS will back tuition-free training and certification programs through partnerships with community colleges and workforce agencies, as well as retention bonuses of up to $5,000 per eligible worker. The agency also signaled flexibility for states to tailor dollars to local needs, including telehealth and infection-control training in remote regions.
The program is part of the National Nursing Home Staffing Campaign. It prioritizes rural and underserved communities, with CMS reserving a large share of awards for high-shortage states such as California, Texas and Florida, according to agency documents.
Who qualifies and how to apply
To participate, facilities must be Medicare- or Medicaid-certified and meet staffing minimums set under CMS’s 2024 staffing rule, including 3.48 hours per resident day overall and 0.55 RN hours per resident day as the mandate phases in. Applicants also need to show need through workforce audits and maintain up-to-date Payroll-Based Journal reporting.
Applications will be submitted through a new Nursing Home Staffing Portal. CMS said awards will weigh facility size, local shortage severity and equity factors, including support for minority-serving providers. Industry reports indicate more than 1,200 facilities have pre-registered interest ahead of the portal’s launch.
Why it matters
Staffing remains the sector’s pressure point. By CMS’s own estimates, roughly 60% of facilities report shortages. CNA turnover has hovered near 90% in recent years, and low wages and burnout have led operators to rely on costly agency labor. Researchers have linked understaffing to higher hospitalizations and poorer outcomes for residents.
CMS projects the new fund could help train or upskill about 50,000 workers by 2028, easing compliance with the phased staffing requirements that begin taking effect in May 2026. The agency believes improved staffing will lift quality ratings and reduce penalties tied to the Five-Star system and value-based purchasing.
Support — and concern — from the field
Provider and consumer groups largely welcomed the investment. LeadingAge’s CEO called the campaign a potential “game-changer” for nonprofit operators serving vulnerable populations, while urging governors to contribute matching funds so access is equitable across states.
Trade groups, however, cautioned that timelines matter. “We applaud the investment, but delays until mid-2026 for incentives could exacerbate closures in rural areas,” AHCA/NCAL President Mark Parkinson said in a statement. “Providers need immediate relief, not just promises.”
Oversight officials also pressed for clear accountability. A recent snapshot from the HHS Office of Inspector General noted that some facilities graduating from special-focus status continue to struggle with issues like infection control. Tying training dollars to sustained improvements, not just one-time gains, will be key, the OIG said.
Potential pitfalls
The biggest near-term question is state participation. As of this week, only a subset of states have pledged matching funds, according to industry sources, raising concerns about uneven access between regions. CMS has asked governors for responses by mid-November.
There are also bureaucratic hurdles. While initial disbursements are slated for January, several incentives — including retention bonuses — may not reach workers until mid-2026, according to agency timelines. Providers worry that lag could blunt the program’s impact during a tight labor market.
What providers should do now
Operators interested in applying should compile workforce data, update PBJ submissions and line up education partners such as local colleges. CMS said it will publish detailed application guidance when the portal opens on Dec. 1. In the meantime, facilities can assess eligibility against the 2024 staffing rule and prepare documentation for workforce audits.
The initiative reflects a broader push to stabilize long-term care staffing after years of disruption. Whether the $75 million fund becomes a turning point, stakeholders say, will depend on state buy-in, swift execution and a sustained focus on retaining the workers who complete training.
