The Centers for Medicare & Medicaid Services (CMS) has announced a $50 billion initiative aimed at improving rural healthcare across all 50 states. The funding, part of the Rural Health Transformation Program, was established under President Trump's Working Families Tax Cuts legislation. Starting in 2026, states will receive first-year awards averaging $200 million, with amounts ranging from $147 million to $281 million.
Health and Human Services Secretary Robert F. Kennedy, Jr. said that this investment empowers local healthcare providers and ensures affordable care for rural Americans. CMS Administrator Dr. Mehmet Oz emphasized the program's role in expanding access and modernizing care in rural areas.
The program focuses on several key areas: expanding access to preventive and primary care services, strengthening the rural health workforce through training and recruitment initiatives, modernizing facilities and technology including telehealth capabilities, and testing innovative care models to improve patient outcomes.
Funds will be distributed over five years from 2026 to 2030, with half allocated equally among states and the other half based on factors such as state policies and potential impact on rural health. A comprehensive review process was used to evaluate applications, ensuring fairness across all states.
For more information about the Rural Health Transformation Program, visit http://www.cms.gov/RHTProgram. State project abstracts can be accessed at https://www.cms.gov/files/document/rht-program-state-provided-abstracts.pdf.
