Governor Shapiro's 2025-26 proposed budget invests $5 million to create a pipeline of new nurses through the Nurse Shortage Assistance Program, strengthening Pennsylvania's health care workforce, providing tuition assistance to young nurses, and setting them up with a hospital placement.

Governor Shapiro’s budget proposal is a commonsense plan that builds on two years of progress by solving more problems — including the nursing workforce shortage.

Philadelphia, PA – On Mar 7th, Governor Josh Shapiro and Pennsylvania Department of Labor & Industry (L&I) Secretary Nancy A. Walker visited Temple Women & Families – part of Temple University Health System (TUHS) – to highlight the investments included in the Governor’s 2025-26 budget proposal aimed at tackling Pennsylvania’s nursing shortage and strengthening the Commonwealth’s health care workforce.  

The Governor’s budget proposal includes a first-time state-level investment of $5 million to create the Nurse Shortage Assistance Program, which will provide funding to hospitals that partner with nursing schools to cover tuition costs for students who commit to a three-year work placement at Pennsylvania hospitals after graduation. This initiative aims to build a pipeline of trained nursing professionals— boosting retention, limiting turnover, and helping maintain a skilled health care workforce that delivers high-quality care all across the Commonwealth.

“We need to take action now to address Pennsylvania’s nursing shortage, and my budget makes strategic investments to do just that,” said Governor Shapiro. “By expanding education programs, providing tuition assistance, and strengthening workforce pipelines, we can ensure hospitals have the skilled professionals they need to deliver high-quality patient care. We know this model of tuition assistance works, and for the first time ever, we are proposing to help nursing students with an investment of state dollars that not only gives them peace of mind but creates a pipeline of new, highly trained nurses for our communities.”

According to a Hospital and Healthsystem Association of Pennsylvania (HAP) survey, Pennsylvania hospitals reported that an average of 14 percent of their nursing positions are unfilled, leaving existing nurses stretched thin and working longer hours. The situation is projected to worsen, with the state expected to face a shortage of 20,000 nurses by 2026.

“Governor Shapiro’s proposed investment in our nursing workforce comes at a crucial time, as skilled and qualified workers are critically needed to meet the high demand for nursing professionals,” said L&I Secretary Nancy A. Walker. “With this investment and L&I’s work to expand nursing and healthcare apprenticeship opportunities, the Shapiro Administration is taking meaningful steps to address our nursing staff shortages and ensure we have the workers we need to support Pennsylvanians in every community across our Commonwealth.”

During the visit, Governor Shapiro was joined by President and CEO of TUHS Michael Young, Chief Nursing Executive of TUHS Chaudron Carter Short, and senior nursing student Maura Cabry, a participant in Temple Health’s Nurse Scholar Program. The Temple program launched in August 2024 and is similar to the Governor’s proposal, by providing students up to $40,000 in funding toward a Bachelor of Science in Nursing (BSN) or Certified Registered Nurse Anesthetist (CRNA) education in exchange for a two-to-three-year, full-time work commitment at Temple Health after graduation and licensure.  

"I am so grateful to be here and to thank Governor Shapiro for proposing investments in a nursing assistance program, like the one here at Temple, which I hope will benefit other nursing students as well,” said Cabry, who will work as a nurse at Temple Health this summer. “This program at Temple has truly been life-changing for me — not only has it given me the opportunity to pursue a career I am passionate about, but it has also provided me with financial peace of mind. The burden of student loan debt is something many of us fear, but knowing I have a guaranteed position at Temple and support to repay my student loans has completely transformed my career and my life.”  

Since launching last year, Temple’s program has received nearly 200 applications from students at 18 partner schools and has already filled 50 percent of its first-year quota.

“The demand for nurses is growing — the U.S. will need to hire more than one million nurses in the coming years while nearly 900,000 are expected to leave the profession,” said Young. “Temple Health is committed to recruiting and retaining top nursing talent, but we need more trained professionals to meet demand. Governor Shapiro’s proposed Nurse Shortage Assistance Program will help expand our workforce, reduce hospital staffing costs, and support aspiring nurses on their career paths. We appreciate the Governor’s leadership and look forward to working together to solve this challenge.”  

“I am incredibly proud to lead a nursing team dedicated to our patients and the profession. These initiatives combined makes nursing education more accessible and builds a stronger workforce,” said Carter Short. “Governor Shapiro’s proposal will be a game-changer by reducing student debt and strengthening the nursing pipeline to address this shortage.”

Addressing Pennsylvania’s Nursing and Health Care Workforce Shortages 

This strategic investment builds on the steps Governor Shapiro and his Administration have already taken to attract more nurses and health care workers to Pennsylvania’s workforce, including:

• Expanding nursing apprenticeships: Secured $2 million in the 2024-25 budget for Pennsylvania’s first nursing registered apprenticeship programs to help fill critical workforce gaps.

• Implementing the Nurse Licensure Compact: Allowed nurses with multistate licenses from 40 other states to practice in Pennsylvania, increasing access to care.

• Investing in the substance use disorder (SUD) workforce: Allocated $22 million last year to support 400 SUD professionals, with a total $40 million investment helping nearly 675 professionals through student loan repayment programs funded by opioid settlement dollars.

Governor Shapiro’s 2025-26 proposed budget further invests in Pennsylvania’s health care workforce by addressing critical shortages and expanding access to care, including:

• $5 million to expand the Primary Care Loan Repayment Program at the Pennsylvania Department of Health, offering loan repayment for physicians, dentists, and psychologists who commit to working in designated Health Professional Shortage Areas like rural communities.

• $10 million to expand behavioral health loan repayment programs, ensuring providers are available statewide – including in rural communities – to meet the growing demand for mental health care and address a critical workforce shortage.

• $5 million to educate, train, and recruit nursing professionals through tuition support, ensuring a steady pipeline of highly trained professionals in rural hospitals.  

• Legislation to grant full practice authority to nurse practitioners who have worked under a physician for three years, increasing access to care in underserved communities.

• Enhancing postpartum depression screening and intervention efforts to ensure equitable access to maternal health care.

The Governor’s proposal builds on his Administration’s commitment to workforce development and previous investments to support health care access across the Commonwealth. By making strategic investments in key industries like health care, child care, and direct care, the Shapiro Administration is tackling workforce shortages that impact Pennsylvania families and economic growth.

“Right now, we are facing a critical shortage of nurses and health care professionals,” said Senator Tartaglione. “That shortage isn’t just a problem for hospitals — it’s a problem for every working family in Pennsylvania. I’m so grateful for the Governor’s leadership in putting forward a budget that takes these challenges seriously, especially considering the uncertainty above us in Washington.” 

Watch Governor Shapiro’s full budget address to a?joint?session of the House and Senate here.?See the Governor’s full remarks as prepared for delivery here. 

Read more about Governor Shapiro’s 2025-26 budget proposal. Explore the Governor's 2025-26 Budget in Brief here, or visit shapirobudget.pa.gov to learn more.