Nursing Shortage Reduction Program

Program Description

The 87th Texas Legislature, Regular Session, appropriated $9,440,024 to the Texas Higher Education Coordinating Board (THECB) for fiscal year (FY) 2023 for the Professional Nursing Shortage Reduction Program Regular Program. The amount of $9,440,024 will be distributed to the state’s public and  independent institutions of higher education that have eligible nursing programs that submit a completed application and demonstrate an increase in the total number of nursing graduates at the associate, baccalaureate, master’s, and doctoral degree levels from academic year 2023 (September 2022 through August 2023). Award amounts are subject to any additional budgetary reductions enacted.

Awards are based upon each qualifying institution’s increase in graduates as a percentage share of the total increased number of graduates reported by qualifying institutions.


The Nursing Shortage Reduction Program was first authorized by the 77th Texas Legislature in 2001. The authorizing legislation, Senate Bill 572, found that, “Texas is experiencing a significant shortage in the registered nurses it needs,” and that, “it is necessary to increase the number of registered nurses in the state to protect the health, safety and welfare of the public.” NSRP was established specifically to provide grants to nursing education programs at Texas public and independent institutions of higher education.

Allowable Expenditures

Any award made under this program is subject to restrictions as determined by the THECB.
Allowable expenditures can be found here:

  • Texas Education Code 61.9623
    • Examples of qualifying retention expenditures under this section include student financial aid, textbooks, and computer-based aids.

Appropriate documentation should be maintained by institutions to document that expenditures support the institution’s efforts to increase the number of nursing graduates. Coordinating Board review or approval is not required to expend these funds on allowable expenditures.

NSRP Grant Cycle

Deadline to Spend Funds Thru FY2029

Program reports

Each institution receiving an award for a fiscal year is required to submit an Annual Report covering that year. Individual Program Reports for the Nursing Shortage Reduction Program for each award year are required annually until all funds for that year have been expended or returned. See Board Rule 22.507(a).

Accounting and Auditing Issues

Any award under this program must be accounted for separately by institution, by NSRP program, and by year to facilitate the record keeping requirements associated with multiple NSRP programs that may be open over a several year period. See Board Rule § 22.508(c).

If any audit conducted on NSRP fund determines that funds have been expended on non-qualifying expenditures, or resulting from over-allocation, or misallocation, the institution shall refund those expenditures within 15 days written notice from the Coordinating Board.

Institutions have four fiscal years after the year of award in which to expend award funds. See Board Rule 22.507(b).

NSRP Grant Cycle

Deadline to Spend Funds Thru FY2029

For more information:

  • Texas Education Code Sections 61.9621-61.9629
  • Coordinating Board Rules, Texas Administrative Code Title 19, Part 1, Chapter 22, Subchapter S: 22.501-22.508


Inquiries should be directed to:

Email NSRP