The training plan is good. You have mapped the competency gaps on your units, costed a preceptor program, and priced simulation days for the new graduates arriving next spring. Then the budget meeting ends with the same answer it always does: worthwhile, but not this year. Somewhere in the conversation, someone says, "Isn't there a grant for this?"
There often is, but rarely in the shape nurse leaders expect. Most public money for nursing education in Texas flows to nursing schools, colleges and workforce boards, and facilities reach it through partnerships. Knowing which door to knock on, and who holds the pen on the application, is most of the battle.
This guide maps the main public funding streams for nursing education and training in Texas as of October 2026: the Texas Higher Education Coordinating Board's nursing programs, the Texas Workforce Commission's Skills Development Fund, and federal nurse workforce programs run by the Health Resources and Services Administration (HRSA). For each, it describes eligibility only as the program's own documents state it. Funding cycles, amounts and rules change, so confirm the current notice before you plan around any of them.
It helps to sort public nursing education funding by the agency and its purpose:
A facility rarely applies alone. Its realistic role is partner, clinical site, employer of trainees or host of preceptors, and many of these programs cannot succeed without exactly that.
The Nursing Shortage Reduction Program (NSRP) is the state's longest-running nursing capacity grant. According to THECB's FY2026 Request for Applications, it was first authorized by the 77th Texas Legislature in 2001 and is governed by Texas Education Code Sections 61.9621 through 61.9629 and Title 19, Chapter 10 of the Texas Administrative Code. Its stated purpose is to increase the enrollment, retention and graduation of registered nursing students.
Who can apply. The FY2026 notice limits eligibility to Texas public or private institutions of higher education (plus certain entities that were eligible before September 1, 2009) that have a professional nursing program approved by and in good standing with the Texas Board of Nursing. Programs with Full Approval or Full Approval with Warning could apply; programs with initial or conditional approval could not. Each eligible applicant may submit one application.
Scale and timing. THECB anticipated about 80 awards. Its first addendum raised the estimated appropriation for the cycle to $23,447,952.60, split across growth, production and faculty tiers, and later addenda extended the application deadline to March 25, 2026. The FY2026 grant period runs for 24 months, ending March 31, 2028.
Why it matters to facilities. Among the allowable uses listed in the notice are regional shared services among nursing programs and "employing or contracting with preceptors or part-time faculty to provide clinical instruction to accommodate increased student enrollment." Clinical placement capacity is often the bottleneck for schools, and that is exactly where a facility with willing, prepared preceptors can help a partner school build a stronger application. The notice also lists prohibited costs, including indirect costs and costs for ongoing support of the project after the grant period ends, which is a reminder to plan for sustainability from the start.
Nursing Innovation Grant Program (NIGP, Rider 64). THECB describes this program as funding innovative projects in pre-licensure nursing education, including projects designed to increase clinical sites and preceptors and to develop pathways with stackable credentials from certified nurse aide to a baccalaureate degree in nursing. THECB lists the current cycle as closed. For facilities, the pathway element is the interesting one: a nurse aide to RN pathway built with a partner school can double as a retention strategy for your own staff.
Nursing Faculty Loan Repayment Assistance Program. This program aims to encourage qualified nurses to serve as faculty. THECB's loan program information states that applicants must hold a master's or doctoral degree in nursing, be licensed by the Texas Board of Nursing, and be employed part time or full time as faculty in a nursing program at a Texas institution of higher education. The maximum annual amount for 2025 to 2026 was $16,000, for up to five years, and the 2025 to 2026 application is closed. It matters to leaders whose senior staff teach part time. Our article on moving from the bedside to nurse educator covers that path.
The Skills Development Fund (SDF) is the Texas Workforce Commission's main customized training grant. TWC describes it as a program that helps Texas businesses train new or incumbent workers, with training designed around the employer's needs.
Who applies. Employers do not apply alone. According to TWC and local workforce board materials, eligible applicants include public community and technical colleges, the Texas Engineering Extension Service (TEEX), community-based organizations in partnership with a college or TEEX, and workforce development boards. The business is the partner whose workers receive the training.
Scale. Workforce board materials describe a cap of $500,000 for a single-business project and a target cost of about $2,000 per trainee, typically over a 12-month grant term. Local boards and colleges can tell you how those figures apply to a specific proposal.
Health care examples. SDF is not only for manufacturing. In August 2026, TWC announced a Skills Development Fund grant of $2,416,902 to Workforce Solutions Permian Basin to provide customized training for 1,486 new and current workers at 18 rural hospitals and one urgent care center, in partnership with seven colleges, for roles including registered nurses. That is the model to study: a workforce board, several colleges and a group of facilities applying together for shared training needs.
TWC also funds health care registered apprenticeship, including a $15 million statewide initiative aimed at career pathways to registered nursing. Apprenticeship rules differ from SDF, so treat it as a separate conversation with your local workforce board.
HRSA's Title VIII nursing workforce development programs are the main federal source. According to the American Nurses Association, the Consolidated Appropriations Act, 2026 (Public Law 119-75) provided $305.472 million for Title VIII programs in fiscal year 2026, after an earlier House committee bill had proposed a cut. The programs include Nurse Education, Practice, Quality and Retention (NEPQR), the Nurse Faculty Loan Program, Nursing Workforce Diversity, Advanced Nursing Education, and the Nurse Corps scholarship and loan repayment programs.
NEPQR Transition to Practice (HRSA-26-086). This FY2026 opportunity aimed to expand the nursing workforce in rural and medically underserved communities through educational and clinical training, including transition to practice. The federal listing named public and private institutions of higher education among eligible applicants, with about $24.26 million available for roughly 33 awards of up to $750,000 per year, over a four-year period of performance beginning September 1, 2026. HRSA's notice required a substantial share of annual funding to go to experiential learning, including simulation-based technology. The cycle has closed, but it shows the federal direction: academic and practice partners building transition programs together.
Nurse Corps Loan Repayment Program. This one reaches facilities through their nurses. HRSA states that the program is open to registered nurses and advanced practice registered nurses working full time at an eligible Critical Shortage Facility, and to nurse faculty at eligible schools of nursing. It pays 60 percent of unpaid nursing education debt over a two-year commitment, with an optional third year for an additional 25 percent. Applicants must be U.S. citizens, nationals or lawful permanent residents with a current, unrestricted license. The FY2026 application window has closed. If your facility may qualify as a Critical Shortage Facility, confirming that status gives you a recruiting and retention message for the next cycle.
| Program | Agency | Who applies | Facility role | Status, October 2026 |
|---|---|---|---|---|
| Nursing Shortage Reduction Program | THECB | Texas institutions with BON-approved professional nursing programs | Clinical partner, preceptors | FY2026 awards made; watch for next RFA |
| Nursing Innovation Grant Program | THECB | Higher education institutions | Clinical sites, CNA to RN pathways | Current cycle closed |
| Nursing Faculty Loan Repayment | THECB | Individual nursing faculty | Staff who also teach | 2025 to 2026 closed |
| Skills Development Fund | TWC | Colleges, TEEX, workforce boards with partners | Business partner whose staff are trained | TWC accepts proposals through its partners |
| NEPQR Transition to Practice | HRSA | Institutions of higher education | Practice partner for residency programs | FY2026 cycle closed |
| Nurse Corps Loan Repayment | HRSA | Individual RNs and APRNs | Eligible Critical Shortage Facility employer | FY2026 cycle closed |
Grant windows are short, and the partners who win are the ones who were ready before the notice dropped. Whatever the source, the same preparation helps:
Can a hospital apply directly for the Nursing Shortage Reduction Program? Not according to THECB's FY2026 Request for Applications. Eligible applicants are Texas public or private institutions of higher education, plus certain previously eligible entities, with a professional nursing program approved by and in good standing with the Texas Board of Nursing. Hospitals typically take part as clinical partners, for example by supplying preceptors.
Can the Skills Development Fund pay for nurse training at my facility? It can, through a partner. TWC's Skills Development Fund is applied for by public community and technical colleges, TEEX, community-based organizations partnered with them, and workforce development boards, on behalf of employers. In August 2026 TWC announced an award to Workforce Solutions Permian Basin to train workers, including registered nurses, at 18 rural hospitals and one urgent care center.
What federal funding exists for nursing education? HRSA runs the Title VIII nursing workforce development programs, which received $305.472 million in FY2026 according to the American Nurses Association. They include Nurse Education, Practice, Quality and Retention grants, the Nurse Faculty Loan Program, Nursing Workforce Diversity, Advanced Nursing Education and Nurse Corps scholarships and loan repayment.
How does Nurse Corps loan repayment help a facility? HRSA's Nurse Corps Loan Repayment Program pays 60 percent of eligible nurses' unpaid nursing education debt over a two-year commitment, with an optional third year for another 25 percent, for RNs and APRNs working full time at an eligible Critical Shortage Facility. If your facility qualifies, that is a recruiting and retention benefit you can point candidates to.
Are these programs open right now? Most cycles described here were closed as of October 2026, including the FY2026 NSRP application window, the current NIGP cycle and the FY2026 Nurse Corps and NEPQR windows. Funding programs reopen on their own schedules, so check THECB, TWC and HRSA directly and prepare your partnership and data before the next notice.
A fundable program needs clear competencies, a defined cohort and outcomes you can report. Wahero designs and delivers simulation-based training for facilities, brought to your site through our mobile model, and can help you structure preceptor development and new graduate programs around measurable results. See our simulation lab, read about workforce training for facilities, or schedule a conversation about your plans.
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