May 20, 2026
President Trump’s One Big Beautiful Bill includes a proposed rule from the U.S. Department of Education (DOE) which would reclassify post-baccalaureate nursing degrees as graduate, rather than professional degrees. This would reduce the borrowing cap for nursing and other health students from $200,000 to $100,000.
Organizations such as the National Alliance for Care at Home believe this proposed rule from DOE would constrict the pipeline of clinicians to the hospice space, and others have voiced concerns about the nurse workforce and broader care networks. However, regardless of the perceived impact of the proposal, the immediate response from these organizations highlights an already existing crisis that requires immediate attention and support; namely, the widespread staffing shortage of nurses, care workers, and more to support injured federal workers. It’s critical that if the pipeline of talent into these fields does not improve, that third-party support is brought in to ensure that federal agencies have the healthiest, most productive workforce possible, while maintaining efficient bills and claims reviews. These support systems can have a direct impact on maximizing agencies’ ability to realize government initiatives through a fully available workforce, especially as many public sector employees are expected to be in office more regularly.
Fixing the Challenges We Have Now
The Health Resources and Service Administration’s recent brief shows that nationwide nursing shortages are projected through 2038. These shortages were worsened by COVID-19, as well as an aging workforce and increased burnout among employees. As a result, additional stress has mounted and been placed on an already strained system, and negatively impacted patient care and overall outcomes. This is not an acceptable situation for the federal workforce.
We’ve seen states look into policy strategies to address these current challenges. While financial support, on-the-job learning, and streamlining licensing requirements can bring some improvements, there is a need for help now.
The foundation of these policies should be an understanding that in the face of nationwide shortages that are currently limiting, or at least delaying, federal workers ability to receive timely care, that TPAs like Sedgwick Government Solutions are well-suited to mitigate these challenges quickly. In place national provider networks can be implemented immediately, customized based on program requirements, and include fully credentialed providers in all disciplines and specialties. Beyond these nursing shortages, workforce staffing issues exist for nearly all levels of healthcare, meaning injured federal workers are constrained in their ability to find and receive care. We’ve written before about FECA reform, which would address limitations in the current framework under which only a physician may diagnose an injury, certify a claim, and oversee treatment. This reform, which would expand the pool of eligible providers to include state-licensed NPs and PAs, in tandem with new strategies to address nursing shortages, are key building blocks upon which a healthy workforce is created and sustained.
Where We Go From Here
Beyond much needed reform and agencies identifying where TPAs can support our critical federal workers, there are other avenues that the government can take to ensure that nurses, healthcare professionals, and other similar professions, are being maximized to ensure care is being delivered on time. Initiatives that build upon existing education programs for how workers can access care will be important, as well as additional proposals, policy, and campaigns centered on the current healthcare shortage crisis in the country. Simplified fixes could see expansions of telehealth, a specific focus on veterans, military members, and others in roles that experience more stress, anxiety, and/or danger in their day-to-day roles.
The government can also direct more funds to healthcare services and care workers. With a more robust pipeline of funding, in conjunction with TPA expertise, the shortage could be more steadily addressed while streamlining avenues to care. These are tools we have available now to make sure the federal workforce is healthy and readily available.
Finally, there are improvements that can be made by state government agencies, who play a fundamental role in this equation. These agencies understand the unique needs of their constituents, the government workers in their area, and the scale of support could differ state-by-state, or even county-by-county. While states must meet federal standards and regulations, they can adapt funding for healthcare services up or down as needed, and can ensure that remote and rural areas are also receiving needed attention.
