The Centers for Medicare & Medicaid Services (CMS) has confirmed its commitment to advancing a $75 million nursing home staffing campaign, initially launched under the Biden administration. This announcement, made during a recent closed call with long-term care stakeholders, signals a potential restart for financial incentives aimed at recruiting Registered Nurses (RNs) to the sector, even as the broader federal nursing home staffing mandate faces an uncertain future.
The campaign, which proposes offering tuition reimbursement and stipends of up to $50,000 per nurse for three years of service in a qualifying nursing home or state survey agency, had been on hold since the transition to the Trump administration. LeadingAge, a key industry advocacy group, reported that CMS intends to release further details “soon” and resume the selection process for financial administrators who will oversee the grant funding.
This renewed focus on recruitment comes at a critical time for the nursing home industry, which continues to grapple with severe workforce shortages. According to federal data, the U.S. healthcare system is projected to lack 78,610 full-time registered nurses by 2025, with an even more dire shortage of Certified Nursing Assistants (CNAs). The American Health Care Association (AHCA) had previously estimated that meeting the now-contested federal staffing mandate would require nursing homes to hire an additional 80,077 CNAs and 22,077 RNs annually, at an estimated cost of $6.8 billion.
“Any and all efforts to support our mission-driven members in addressing ongoing challenges in recruiting and retaining staff are needed and welcome,” stated Lisa Sanders, spokeswoman for LeadingAge. “We are eager to hear next steps.”
The commitment to the staffing campaign is particularly noteworthy given that a federal district court in Texas recently struck down key provisions of the controversial federal staffing mandate, including the 24/7 RN requirement and specific hours per resident day for RNs and CNAs. This ruling has left many providers questioning the broader direction of federal staffing policy.
A potential factor in the campaign’s survival is its funding mechanism. CMS reportedly plans to partially finance the initiative through Civil Monetary Penalties (CMPs) collected from nursing homes found in violation of federal regulations. LeadingAge recently revealed that 11 states alone hold a combined $190 million in CMPs, highlighting a substantial pool of funds that can be reinvested into initiatives aimed at improving resident care.
Beyond the RN incentives, CMS has also expressed an intent to invest in tools to promote and streamline CNA recruitment. While an initial website was launched in December, further promotional efforts for CNA training resources are still awaited. As the industry navigates a complex regulatory landscape and persistent workforce challenges, the continuation of this staffing campaign offers a glimmer of hope for alleviating some of the acute staffing pressures on nursing home operators