Wolf Administration Announces Act 2 Provider Funding

March 23, 2022

The Wolf Administration today shared details about the state appropriation of $225 million of American Rescue Plan funding to support Pennsylvania’s health care workforce.

Approved during January, Act 2 delivers critical funding to help hospitals address severe staffing challenges through recruitment and retention initiatives, as well as student loan forgiveness.

The $225 million in funding includes:

• $100 million distributed to acute care, critical access, and children’s hospitals licensed by the Department of Health on a per-bed basis for recruitment and retention payments to direct care staff
• $110 million distributed on a per-bed basis to high-Medical Assistance hospitals, designated Critical Access Hospitals, and inpatient and residential behavioral health facilities for recruitment and retention payments to key staff 
• $15 million in funding for the nurse loan forgiveness program at the Pennsylvania Higher Education Assistance Agency

The Pennsylvania Department of Human Services has said payments will begin on or around April 11 and reporting guidelines will be issued in mid-April.

A Frequently Asked Questions guide, including a list of total payments to providers, is available online.