The Nurse Faculty Shortage Reduction Act of 2026 establishes a Nurse Faculty Demonstration Program to combat the critical shortage of qualified nursing faculty. This program authorizes the Secretary to award grants to accredited schools of nursing, specifically designed to supplement the salaries of eligible nursing faculty members. The grants aim to enhance both the recruitment and retention of nursing faculty by addressing the wage differential between clinical practice and academic roles. For up to a three-year period, these grants will cover the difference between the average salary of nurses in clinical practice and the faculty member's current or average faculty salary. To receive a grant, schools must submit an application detailing salary histories, faculty vacancies, and plans for sustainable funding beyond the grant period. Priority for awards will be given to schools demonstrating the greatest need, those serving vulnerable patient populations , or those actively recruiting faculty from underrepresented populations . An "eligible nursing faculty member" includes new hires within two years, those demonstrating need, individuals previously working as clinical nurses or faculty at other schools, and part-time faculty. The bill authorizes $15,000,000 annually for fiscal years 2027 through 2031 to fund this initiative. Finally, the Secretary is mandated to submit a report to Congress within three years, evaluating the program's impact on faculty recruitment and retention rates and providing recommendations for its continuation.