The Centers for Medicare & Medicaid Services announced September 15 that states can now apply for funding from the $50 billion Rural Health Transformation Program, with applications due November 5 and recipients to be announced by December 31.
What happened
CMS unveiled details on how states can apply to receive funding from the $50 billion Rural Health Transformation Program created under the One Big Beautiful Bill Act. The program will distribute funds to rural providers from fiscal year 2026 to FY 2030, marking what officials call the largest investment ever made to improve healthcare for rural Americans. All 50 states can apply for funding to address their specific rural health challenges. The program enables states to develop innovative, state-driven solutions to tackle root causes of poor health outcomes in rural America. Half of the funding will be distributed evenly to all states with approved applications, while the other half will be awarded based on individual state metrics and applications that demonstrate the greatest potential for impact on rural communities.
Going deeper
The program establishes five strategic goals:
- Make rural America healthy again: Support rural health innovations and new access points to promote preventative health and address root causes of diseases
- Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability
- Workforce development: Attract and retain skilled healthcare workforce by strengthening recruitment and retention in rural communities
- Innovative care: Spark growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements
- Tech innovation: Foster use of innovative technologies that promote efficient care delivery, data security, and access to digital health tools
The $50 billion will be allocated over five years, with $10 billion available each year beginning in federal fiscal year 2026. States have only one opportunity to apply during this single application period.
What was said
"Rural communities are the bedrock of America. They have waited too long for Washington to act. Now, at last, we are acting with the largest investment ever made to improve health care for rural Americans," said U.S. Health and Human Services Secretary Robert F. Kennedy, Jr. "This $50 billion program is about delivering dignity and dependable care to rural communities, making sure every American has access to affordable, high-quality treatment."
"This program is a historic investment that will catalyze needed change in rural health systems and improve lives for generations to come," said CMS Administrator Dr. Mehmet Oz. "For too long, when it comes to health care access and infrastructure, we've left behind the backbone of America. That stops now with this program that will spark real change for rural health care."
By the numbers
- $50 billion total program funding
- $10 billion available each year from FY 2026-2030
- 50% of funds distributed evenly to approved states
- 50% of funds awarded based on impact metrics
- Application deadline: November 5, 2025
- Recipients announced: December 31, 2025
Why it matters
This program addresses a gap in American healthcare infrastructure where rural communities have historically faced provider shortages, hospital closures, and limited access to specialized care. The funding structure - splitting awards between guaranteed state allocations and merit-based distributions - creates both equity and incentives for innovative approaches. The emphasis on technology integration and workforce development specifically targets the two biggest barriers rural providers face: attracting qualified staff and implementing modern care delivery systems.
The bottom line
The Rural Health Transformation Program represents a pivotal moment for rural healthcare systems that have struggled with sustainability and access issues. States must act quickly to develop applications that demonstrate measurable impact potential. Healthcare organizations in rural areas should begin coordinating with their state health departments to ensure their needs are reflected in applications, as this may be the most significant funding opportunity for rural health infrastructure in decades.
FAQs
Who is eligible to submit an application for the program?
Only state governments can apply directly, but they are expected to partner with local providers and organizations.
What types of projects are most likely to be funded?
Projects that align with the program’s five strategic goals and demonstrate measurable community impact will have the strongest chance.
How will this program interact with other federal rural health initiatives?
It is designed to complement existing programs but on a larger, more transformative scale.
