Congressman Brett Guthrie, Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith, Chairman of the Subcommittee on Health, have expressed support for the Centers for Medicare and Medicaid Services’ (CMS) recent announcement regarding funding allocations for states under the Rural Health Transformation (RHT) program. The RHT program was established through President Trump’s Working Families Tax Cuts law.
“Our Working Families Tax Cuts law delivered the most historic investment in rural health that we’ve seen in our lifetimes,” said Chairmen Guthrie and Griffith. “The RHT program will provide funding to transform health care systems so that we can help assure the long-term sustainability of our rural providers for years to come. We applaud Secretary Kennedy and Administrator Oz on this critical effort, and we look forward to seeing states use these resources to bolster health care delivery through innovative solutions in rural America.”
Funding allocations were determined by a merit review process led by both federal and non-federal rural health experts, overseen by senior federal review directors. This process assessed each state’s proposals based on their alignment with program goals to ensure fairness and transparency.
Distribution of funds will occur over five years starting in fiscal year 2026. During implementation, CMS’s Office of Rural Health Transformation will offer technical assistance and ongoing support as states develop initiatives tailored to their rural communities.
The RHT Program aims to improve access to quality healthcare outcomes in rural areas by transforming healthcare delivery systems. Funding includes $25 billion distributed evenly among all 50 states—each receiving $100 million annually from FY 2026 through 2030—and another $25 billion allocated according to criteria targeting states with significant rural healthcare needs. Only U.S. states are eligible; neither the District of Columbia nor U.S. Territories qualify for these awards.
