Applications Open: States Can Claim Share of $50B Rural Health Program Funding

The Centers for Medicare & Medicaid Services (CMS) has announced the Rural Health Transformation Program, a landmark $50 billion federal initiative aimed at improving health care across rural America.

This program, created under the Working Families Tax Cuts Act, is the largest investment in rural health care in U.S. history.

Read: HHS Expands Access to Affordable Health Insurance Through Hardship Exemptions
 

What the Program Means for Rural Communities

Rural communities have long faced challenges in accessing affordable, high-quality health care.

Rising medical costs, workforce shortages, and outdated infrastructure have made care harder to find and sustain.

With this new program, states can apply for federal funding to strengthen their rural health systems and address these gaps directly.

You may have access to support you didn’t know about. Find out more here!
 

Goals of the Rural Health Transformation Program

CMS outlined five strategic goals for the initiative:

• Healthier rural America: Expand preventive health care and tackle the root causes of disease.

• Sustainable access: Support rural clinics and hospitals to remain long-term, reliable providers.

• Workforce development: Recruit and retain skilled health care workers in underserved areas.

• Innovative care models: Improve outcomes through flexible, coordinated, and patient-centered care.

• Technology upgrades: Increase access to telehealth, digital health tools, and data security.

How Funding Works

• Total investment: $50 billion over five years.

• Distribution: $10 billion per year starting in fiscal year 2026.

• Half of the funds will be evenly divided among approved states.

• The other half will be awarded to states that demonstrate the greatest potential for impact in rural communities.

Application Timeline for States

• Application deadline: November 5, 2025

• Award announcements: December 31, 2025

• Funding begins: Fiscal year 2026

Each state has only one opportunity to apply, making this a competitive and time-sensitive process.

CMS will provide oversight to ensure the program delivers lasting improvements.

States and stakeholders can review the full program details and application requirements at: CMS Rural Health Transformation Program

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