The proposed bill establishes a Nursing Student Loan Reimbursement Program, to be administered by the Office of Higher Education (OHE) starting July 1, 2025. This program aims to provide financial assistance to licensed registered nurses (RNs) and licensed practical nurses (LPNs) who are residents of Connecticut and have student loans. Eligible participants can receive up to $5,000 annually to assist with their loan payments, contingent upon completing at least 50 hours of unpaid volunteer work each year in designated distressed municipalities or areas identified as having a health professional shortage. The grants will be awarded on a first-come, first-served basis, and participants must submit annual reports detailing their volunteer hours and loan payment status.

To implement the program, the Commissioner of Higher Education is required to create application forms and guidelines by January 1, 2026, and to provide annual reports to the Higher Education and Employment Advancement and Appropriations committees starting January 1, 2027. The bill allows OHE to allocate up to 2.5% of the appropriated funds for administrative purposes. Notably, the bill does not impose a cap on the number of years participants can receive funding, which could lead to significant costs given the number of nurses in the state who may qualify. The bill is part of a broader legislative effort to establish loan repayment programs for healthcare providers in distressed municipalities, as identified by the Department of Economic and Community Development (DECD).