The federal program and funding aim to transform rural health care across the country.
States have until November 5 to apply for funding from the $50 billion Rural Health Transformation Program created under the Working Families Tax Cuts Act.
The program is meant to help states transform the existing rural health care infrastructure and build sustainable health care systems to expand access, enhance quality of care, and improve patient outcomes.
The Centers for Medicare & Medicaid Services (CMS) announced on Monday that states can apply for funding to address their specific rural health challenges. The agency encourages states to “reimagine care delivery and develop innovative, enduring, state-driven solutions to tackle the root causes of poor health outcomes specific to rural America.”
The program aims to encourage preventive health, address root causes of disease, improve efficiency and sustainability, recruit and retain health care providers, seek innovative care models that improve outcomes, coordinate care, boost flexible care arrangements, and encourage efficient care delivery, data security, and access to digital health tools.
Funding will be allocated to approved states over five years, with $10 billion available each year beginning in federal fiscal year 2026. CMS said half of the funding will be evenly distributed to all states with an approved application. The other half will be awarded to approved states based on individual state metrics and applications that reflect the greatest potential for and scale of impact on the health of rural communities.
States have until November 5 to apply for the program. This will be the only opportunity to apply for funding. Awards will be announced by December 31. CMS said it will partner with states over the program period to ensure strong oversight and successful implementation of initiatives.
CMS Administrator Dr. Mehmet Oz said the investment will catalyze needed change in rural health systems. “For too long, when it comes to health care access and infrastructure, we've left behind the backbone of America,” he said in the announcement. “That stops now with this program that will spark real change for rural health care.”