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July 7, 2026
Media contact: Franny White, franny.l.white@oha.oregon.gov, 971-349-3539
$97M awarded across Oregon to improve rural health
OHA announces grants to advance rural healthcare in every Oregon county
SALEM, Ore. – Oregon Health Authority (OHA) is awarding about $97.1 million in additional federal funding to improve the health and well-being of Oregon’s rural communities this year. The grants will collectively support 136 new projects across all counties in the state.
With this announcement, Oregon has so far awarded about $175.3 million total to support health in rural communities this year.
“Overwhelming interest in this program demonstrates the need across Oregon,” Gov. Tina Kotek said. “At a time when Oregon’s healthcare system is facing significant funding shortfalls due to federal policies, I’m pleased to announce this next step in distributing funding to innovative projects that further the state’s goals to support maternal and child health, bolster the behavioral health workforce, and sustain safety net providers. Our goal is to move these funds as quickly as possible to these critical partnerships.”
Supported by the federal Rural Health Transformation Program, the new grants will enable community-driven projects that collectively: improve rural people’s healthcare access; increase the number of health professionals who work in rural areas; expand the use of data and technology to improve rural healthcare; and help rural communities build regional partnerships that can sustain long-term healthcare improvements.
"These awards support practical, community-driven efforts to improve access to health in rural Oregon," OHA Director Dr. Sejal Hathi said. “Rural communities know their needs best, and this funding is intended to help them strengthen local services, expand workforce capacity, and address barriers that make it harder for people to get care close to home.”
The awards are being offered through two funding pools that OHA established for Oregon’s Rural Health Transformation Program efforts. The largest – competitive Catalyst Award grants – will provide about $80.1 million to 85 organizations that will lead 103 projects addressing either maternal and child health, co-occurring mental health conditions and substance use disorder, aging in place, or chronic disease. The selected organizations will support rural health in every Oregon county.
Another $17 million will go toward Immediate Impact Awards to fund 33 new ready-to-go projects this year. These direct grants are in addition to OHA’s April announcement that it would give $6.5 million in Immediate Impact Awards to support 12 other shovel-ready projects this year. The new Immediate Impact Award projects address a broad variety of rural health needs, including: expanding mobile health units that serve areas with limited healthcare infrastructure; creating a new family medicine residency training program to grow the rural healthcare workforce; and connecting patients with nutritious food to address diet-related conditions.
“OHA is quickly distributing grants through this unique federal funding source and looks forward to supporting Oregon’s rural communities as they improve their own health for years to come,” OHA Health Policy & Analytics Director Clare Pierce-Wrobel said. “While the total funding Oregon is receiving through the Rural Health Transformation Program is relatively small when you consider the full impact of recent federal Medicaid cuts, these awards can make a huge difference for individual organizations that are doing much-needed work in rural Oregon.”
Today’s Catalyst Awards announcement includes the names of organizations that have been selected and the maximum award amounts that are available to those organizations. Exact grant amounts and other details will be finalized when award negotiations are completed this summer. More information about Catalyst Award and Immediate Impact Award recipients can be found by clicking “awards” in the top right corner on the OHA Rural Health Transformation Program homepage.
This marks the largest round of awards OHA has announced since the federal government launched the Rural Health Transformation Program in late 2025. Other rural health awards that Oregon has made to date include: $35 million in direct funding for rural hospitals; $21.7 million for the Tribal Initiative, which aims to improve healthcare access and health outcomes in rural Tribal communities based on the Nine Federally Recognized Tribes of Oregon’s needs; $10 million in direct funding for rural health clinics; and $5 million in direct funding for local public health authorities.
A federal-state partnership
The Rural Health Transformation Program was created by U.S. House Resolution 1, a federal tax and spending bill that became law in July 2025. While the law will cut an estimated $15 billion in federal funding for Oregon programs that provide health insurance, food benefits and more, it also created this federal program. The U.S. Centers for Medicare & Medicaid Services will distribute a total of $50 billion nationwide between 2026 and 2031 through this program.
Oregon is receiving a total of $197.3 million in 2026 and could receive more in the following four years. If Oregon is awarded similar amounts in future years, the state could receive an estimated total of $1 billion through the program. The federal government will determine 2027 funding after it reviews Oregon’s first annual progress report, which is due by the end of August.
Through this federal program, OHA is investing in community-driven projects that improve healthcare access, boost chronic disease management and prevention, grow and sustain the healthcare workforce, and expand the use of health technology and data in Oregon’s rural and remote communities.
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The Oregon Rural Health Transformation Program is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $197,271,577.67, with 100 percent funded by CMS/HHS. The contents of this release are those of OHA and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government.
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