Title 38Veterans' BenefitsRelease 119-73

§1744 Hiring and retention of nurses: payments to assist States

Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 17— - HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE › Subchapter SUBCHAPTER V— - PAYMENTS TO STATE HOMES › § 1744

Last updated Apr 6, 2026|Official source

Summary

The Secretary must give money to States to help State homes hire and keep nurses and to reduce nursing shortages. A State can get money for a year only if it receives per diem payments that year and already has an employee incentive scholarship or a similar incentive program at a State home to hire and keep nursing staff. The State must apply and explain the nursing shortage and the program. The money can only be used for those incentive programs and the Secretary will set rules for those programs, keeping room for flexibility and new ideas. Payments may not pay for more than 50 percent of a program’s yearly cost. For each State home with an eligible program, the payment equals 2 percent of the amount estimated to be paid to the State for that home under section 1741 for that fiscal year. Payments come from funds used for other payments under the same subchapter and are made with the regular disbursement under section 1741. If an employee pays back money because they broke an agreement, the refund must go back into the home’s incentive account as non‑Federal money. States must give the Secretary a detailed report within 60 days after the fiscal year ends and allow audits; getting future payments depends on sending that report. The Secretary will make regulations and award criteria to run the program.

Full Legal Text

Title 38, §1744

Veterans' Benefits — Source: USLM XML via OLRC

(a)The Secretary shall make payments to States under this section for the purpose of assisting State homes in the hiring and retention of nurses and the reduction of nursing shortages at State homes.
(b)Payments to a State for a fiscal year under this section shall, subject to submission of an application, be made to any State that during that fiscal year—
(1)receives per diem payments under this subchapter for that fiscal year; and
(2)has in effect an employee incentive scholarship program or other employee incentive program at a State home designed to promote the hiring and retention of nursing staff and to reduce nursing shortages at that home.
(c)A State may use an amount received under this section only to provide funds for a program described in subsection (b)(2). Any program shall meet such criteria as the Secretary may prescribe. In prescribing such criteria, the Secretary shall take into consideration the need for flexibility and innovation.
(d)(1)A payment under this section may not be used to provide more than 50 percent of the costs for a fiscal year of the employee incentive scholarship or other employee incentive program for which the payment is made.
(2)The amount of the payment to a State under this section for any fiscal year is, for each State home in that State with a program described in subsection (b)(2), the amount equal to 2 percent of the amount of payments estimated to be made to that State, for that State home, under section 1741 of this title for that fiscal year.
(e)A payment under this section for any fiscal year with respect to any State home may only be made based upon an application submitted by the State seeking the payment with respect to that State home. Any such application shall describe the nursing shortage at the State home and the employee incentive scholarship program or other employee incentive program described in subsection (c) for which the payment is sought.
(f)Payments under this section shall be made from funds available for other payments under this subchapter.
(g)Payments under this section to a State home shall be made as part of the disbursement of payments under section 1741 of this title with respect to that State home.
(h)The Secretary shall require as a condition of any payment under this section that, in any case in which the State home receives a refund payment made by an employee in breach of the terms of an agreement for employee assistance that used funds provided under this section, the payment shall be returned to the State home’s incentive program account and credited as a non-Federal funding source.
(i)Any State home receiving a payment under this section for any fiscal year, shall, as a condition of the payment, be required to agree to provide to the Secretary a report setting forth in detail the use of funds received through the payment, including a descriptive analysis of how effective the incentive program has been on nurse staffing in the State home during that fiscal year. The report for any fiscal year shall be provided to the Secretary within 60 days of the close of the fiscal year and shall be subject to audit by the Secretary. Eligibility for a payment under this section for any later fiscal year is contingent upon the receipt by the Secretary of the annual report under this subsection for the previous fiscal year in accordance with this subsection.
(j)The Secretary shall prescribe regulations to carry out this section. The regulations shall include the establishment of criteria for the award of payments under this section.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Implementation Pub. L. 108–422, title II, § 201(b), Nov. 30, 2004, 118 Stat. 2382, provided that: “The Secretary of Veterans Affairs shall implement section 1744 of title 38, United States Code, as added by subsection (a), as expeditiously as possible. The Secretary shall establish such interim procedures as necessary so as to ensure that payments are made to eligible States under that section commencing not later than June 1, 2005, notwithstanding that

Regulations

under subsection (j) of that section may not have become final.”

Reference

Citations & Metadata

Citation

38 U.S.C. § 1744

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73