The Nursing Shortage Assistance Program Act establishes a program within the Pennsylvania Department of Labor and Industry aimed at addressing the nursing shortage by providing grants to qualified nursing servicers. These grants are intended to assist nursing students with securing post-graduation employment and repaying student loans incurred while obtaining nursing degrees from accredited educational institutions in Pennsylvania. The act defines key terms such as "qualified nursing servicer," "partner hospital," and "recipient," and outlines the application process for grants, including the necessary information that must be submitted by applicants.

The act also sets forth restrictions on the use of grant funds, prohibiting their allocation for administrative costs and capping the amount of loan repayment assistance an individual nurse can receive. Additionally, it mandates that any unencumbered grant funds after three years must be returned to the Commonwealth. The Department of Labor and Industry is required to develop guidelines for the program and report annually to the General Assembly on its effectiveness, including details on partner hospitals and the number of nurses benefiting from the program. The act is set to take effect 60 days after its passage.