The nursing profession is undergoing yet another major shortage. A projected shortfall of three quarters of a million nurses is expected by 2020. As the nation's largest employer of registered nurses, the Veterans Healthcare Administration is gravely concerned about having sufficient professional nurses to provide care for our nation's veterans. Leadership styles and empowerment continue to gain attention as a strategy to attract and maintain a dedicated, satisfied workforce. One of the leadership styles that has drawn considerable attention is transformational leadership which is a process of motivating individuals by appealing to higher ideals, values, and visions for organizational excellence and this has been associated with recruitment and retention. Another concept being explored is empowerment which provides employees with information, opportunity, and the ability to make the necessary decisions to affect change. This study used a quantitative, correlational approach using the Multifactor Leadership Questionnaire (MLQ-5X) and the Conditions of Work Effectiveness Questionnaire (CWEQ-II) to measure perceived leadership and empowerment. A non-random sample of 170 subjects from VA and non-VA hospitals in California, Washington, Oregon, Idaho, and Nevada participated in the study. The results showed that transformational leadership scores were higher for VA First-Line Nurse Managers (FLNM) with Z = -2.153, p = .004. Transformational leadership was positively associated with extra effort (Z = -3.981, p = .001) and satisfaction (Z = -2.412, p = .02). No significant differences were noted in empowerment scores between VA and non-VA FLNMs. This study also demonstrated that VA FLNMs are more likely to have graduate nursing education, x²(1, N =174) = 20.76, p <.001. Veterans Administration FLNMs were older t(172) = -3.481, p < .001 and more experienced t(172) = -2.552, p < .05 A major implication for the field is the mediating effects of age and education on leadership styles of FLNMs. Further investigation comparing FLNMs responses to leadership and empowerment to those of their superiors and subordinates provides an opportunity for future research, in particular how these mediation effects of age and experience shape leadership behaviors.