Title 38, Veterans' BenefitsRelease 119-110

§1744 Hiring and Retention of Nurses: Payments to Assist States

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

Last updated Sep 22, 2026|Official source

Summary

The Secretary must give money to States to help State homes hire and keep nurses and to ease nursing shortages. To get money for a year, a State must apply and must (1) receive per‑day payments under this part of the law that year and (2) have a scholarship or other staff incentive program at the State home to hire or keep nurses. The money can only be used for that incentive program and must follow rules the Secretary sets, who should allow flexibility and new ideas. The payment can cover no more than 50% of the program’s yearly costs. For each State home with a qualifying program, the payment equals 2% of the amount the State home is estimated to receive under section 1741 for that year. Payments come from the same funds used for other payments under this part and are sent along with the payments under section 1741. If an employee repays money because they broke an agreement tied to these funds, the refund must go back into the home’s incentive account and count as non‑Federal money. Each State home must give the Secretary a detailed report on how the funds were used and how the program affected nurse staffing within 60 days after the fiscal year ends; reports can be audited and are required before getting money the next year. The Secretary must issue rules that include criteria for awarding these payments.

Full Legal Text

Title 38, §1744

Veterans' Benefits, Source: USLM XML via OLRC

(a)Payment Program.—
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)Eligible Recipients.—
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)Use of Funds Received.—
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)Limitations on Amount of Payment.—
(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)Applications.—
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)Source of Funds.—
Payments under this section shall be made from funds available for other payments under this subchapter.
(g)Disbursement.—
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)Use of Certain Receipts.—
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)Annual Report From Payment Recipients.—
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)Regulations.—
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 38, Veterans' Benefits

Last Updated

Sep 22, 2026

Release point: 119-110