The Centers for Medicare & Medicaid Services (CMS) has announced that all 50 states have applied for the $50 billion Rural Health Transformation Program. This initiative, established under the Working Families Tax Cuts legislation [Public Law 119-21], aims to enhance rural healthcare across America. The application window was open from September 15 to November 5, 2025, allowing states to propose plans for improving their rural health systems.
Health and Human Services Secretary Robert F. Kennedy, Jr. commented on the nationwide participation: "When every state steps up to strengthen rural health, it shows the true character of our nation." He emphasized the program's role in restoring fairness and quality healthcare access to rural communities.
CMS Administrator Dr. Mehmet Oz highlighted the significance of this collective effort: "Seeing all 50 states come forward to reimagine the future of rural health is an extraordinary moment." He noted that approved applications would receive funding tailored to their community needs, with CMS providing ongoing support.
The Rural Health Transformation Program is designed as a major investment in strengthening rural health infrastructure. It focuses on five strategic goals: supporting innovations and preventive care, ensuring sustainable access through efficient providers, developing a strong workforce, testing new care models, and expanding technology use in rural areas.
Submitted applications will undergo CMS review for completeness and compliance with funding requirements. States meeting these criteria will receive baseline funding—half of the total program funds—equally distributed among them. A further merit review will determine allocation of the remaining funds based on each state's proposed initiatives' alignment with program goals.
Approved awardees will be announced by December 31, 2025, with funding disbursed over five years starting in fiscal year 2026. CMS’s Office of Rural Health Transformation will offer technical assistance throughout implementation.
Dr. Oz described this initiative as more than just financial support: "This is not just a funding opportunity—it’s a turning point for rural health." For more information about the program, visit: https://www.cms.gov/priorities/rural-health-transformation-rht-program/rural-health-transformation-rht-program
Information from this article can be found here.
