SALEM, Ore. — Oregon Health Authority (OHA) submitted its application for a federal grant program that could bring up to $1 billion in new investment to strengthen healthcare in Oregon’s rural and frontier communities. 

Through the federal Rural Health Transformation Program, Oregon is seeking funding to expand access to care, grow the healthcare workforce, modernize technology and data systems, and invest directly in community-driven prevention and wellness initiatives. The program was established under House Resolution 1, the federal government budget reconciliation bill that was signed into law in July. 

To develop the application, OHA undertook a statewide engagement process between August and October that was designed to center regional voices. The agency: 

• Hosted two statewide virtual public forums attended by hundreds of residents;
• Conducted two online surveys that reached hundreds more providers, patients and community organizations;
• Held formal consultation and follow-up meetings with Oregon’s Nine Federally Recognized Tribes; and
• Reviewed extensive written input from hospitals, clinics and community partners across rural, frontier and remote regions. 

Across these conversations, people in Oregon emphasized prevention, healthy communities and workforce resilience as top priorities. They called for investments in community-based care models, support for local recruitment and retention, and incentives to attract non-traditional and culturally responsive providers. 

“Informed by the insight of our statewide rural partners, OHA developed a robust plan for transforming rural health in Oregon,” said OHA Director of Health Policy and Analytics Clare Pierce-Wrobel. “As a state with one-third of its residents living in rural and frontier communities, we believe our proposed initiatives meet or exceed the expectations of this funding opportunity—and expect the federal government will recognize the importance of this investment for Oregon’s rural communities when making awards later this year.” 

If funded, Oregon’s initiative would roll out in two phases: 

• Phase 1 (2026–2027): Immediate “catalyst” grants for shovel-ready projects that expand access, improve local infrastructure, and strengthen emergency and maternity care.
• Phase 2 (2028–2031): Larger, regional initiatives focused on long-term sustainability, shared infrastructure and cross-sector collaboration. 

The proposal also includes a dedicated Tribal initiative, providing direct funding for Tribal-led strategies that strengthen sovereignty, workforce development and culturally grounded care.

Nationwide, the Rural Health Transformation Program will distribute $50 billion between 2026 and 2031. Federal law requires the U.S. government to make program award decisions by Dec. 31.

More information is available on the OHA Rural Health Transformation Program webpage, including the following documents: a project summary, a project narrative, a budget narrative, a letter to OHA partners and a letter of support from Gov. Tina Kotek.

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