The Centers for Medicare & Medicaid Services (CMS) has reissued a major funding opportunity aimed at strengthening staffing levels in nursing homes across the country.
On February 9, 2026, the agency posted an updated Notice of Funding Opportunity (NOFO) for its Nursing Home Staffing Campaign. A similar notice was released in January 2025 but ultimately was not carried out. This time, CMS is moving forward with plans to distribute an estimated $80 million to support nurse recruitment and retention.
How the Program Works
Through the NOFO, CMS is seeking organizations to serve as Financial Incentive Administrators (FIAs). These selected entities will oversee the distribution of financial incentives — including student loan repayment and stipends — to registered nurses (RNs) and licensed practical nurses (LPNs) who commit to working for three years in qualifying nursing homes or in oversight roles with State Survey Agencies.
Applications from prospective FIAs are due by March 27, 2026. CMS expects to announce awardees by June 15, 2026, with a projected start date of July 1, 2026.
The agency plans to select one to two administrators per region, with the possibility of up to three in certain regions.
Who Can Apply — and Who Cannot
Eligible applicants include education organizations, nonprofit nursing and education organizations, other nonprofit groups, and small nonprofit businesses.
However, nursing homes, nursing home companies, nursing home associations, state agencies, and CMS’ Quality Innovation Network–Quality Improvement Organizations (QIN-QIOs) are not eligible to apply.
Financial Incentives for Nurses
Once administrators are selected, CMS will provide them with a list of qualifying nursing homes. Under the NOFO, qualifying facilities are defined as those located in areas experiencing significant nurse labor shortages.
Nurses who begin employment at one of these facilities may receive up to $40,000 in student loan repayment. In addition, they may qualify for a $10,000 stipend for working in a designated shortage area.
Eligible participants include licensed practical nurses and both associate-degree and bachelor’s-degree registered nurses. Importantly, nurses must apply for reimbursement before beginning work at a qualifying facility. Those already employed at a qualifying nursing home prior to applying are not eligible.
What’s Next
The reissued funding notice signals CMS’ continued focus on addressing workforce shortages in long-term care settings — a challenge that has intensified in recent years.
Additional details about the Nursing Home Staffing Campaign are available on the CMS website. Questions regarding the initiative can be directed to NHSC@cms.hhs.gov.
