Federal funds to ease shortage
falling short
Administrators forced to turn away most applicants who have applied to
two popular nursing programs

By Glen Fest
August 2, 2004

Federal funding for nursing workforce development programs apparently is on target to rise slightly in 2005, but remains far short of levels sought by nursing advocates, according to the American Nurses Association.

A House subcommittee has approved a $5 million boost to the 2004 funding level of $147 million for scholarship, diversity grant, and loan repayment programs under the Nurse Reinvestment Act.

The ANA had asked Congress for as much as a $63 million increase for the programs aimed at alleviating the nation’s shortage of registered nurses.

The programs are so popular with nurses, according to the ANA, that the Health Resources and Services Administration turned down 98% of applicants for its nursing scholarship program, and 92% who applied for the nurse education loan repayment program in 2003.

A House vote is not expected until after Congress’ August recess, and a final funding measure probably will not be worked out with the Senate until after the November elections, Erin McKeon, associate director of government affairs for the ANA, predicted. “They’ve basically punted,” she said.

The programs under the Nurse Reinvestment Act include advanced education grants to nursing schools, workforce diversity and retention grants, plus scholarship and loan programs for nurses who serve in hospitals with critical shortages. A repayment program for nurse faculty loans repays up to 85% of educational costs of master’s and doctoral students.

McKeon said the faculty loan repayment program is crucial to recruiting more faculty members to nursing schools.

According to a December survey from the American Association of Colleges of Nursing, collegiate nursing programs turned away 11,000 qualified nursing school applicants last fall because of a lack of faculty.