New Federal Program Aims to Transform Rural Health Care Nationwide
Today, the Centers for Medicare & Medicaid Services (CMS) unveiled details on how states can apply to receive funding from the $50 billion Rural Health Transformation Program created under the Working Families Tax Cuts Act to strengthen health care across rural America. This unprecedented investment is designed to empower states to transform the existing rural health care infrastructure and build sustainable health care systems that expand access, enhance quality of care, and improve outcomes for patients.
“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. ”
The Rural Health Transformation Program invites all 50 states to apply for funding to address each state’s specific rural health challenges. The Program enables states to reimagine care delivery and develop innovative, enduring, state-driven solutions to tackle the root causes of poor health outcomes specific to rural America.
The Program has five strategic goals, grounded in the statutorily approved uses of funds:
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Make rural America healthy again: Support rural health innovations and new access points to promote preventative health and address root causes of diseases.
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Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability.
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Workforce development: Attract and retain a highly skilled health care workforce by strengthening recruitment and retention of health care providers in rural communities.
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Innovative care: Spark the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements.
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Tech innovation: Foster use of innovative technologies that promote efficient care delivery, data security, and access to digital health tools by rural facilities, providers, and patients.
The $50 billion program funding will be allocated to approved states over five years, with $10 billion available each year beginning in federal fiscal year 2026. Half of the funding will be evenly distributed to all states with an approved application. The other half will be awarded to approved states based on individual state metrics and applications that reflect the greatest potential for and scale of impact on the health of rural communities.
The deadline for states to apply is November 5, 2025. There is only one opportunity to apply for funding and one application period for this program. CMS will announce awardees by December 31, 2025, and will partner with states over the program period to ensure strong oversight and successful implementation of initiatives with lasting impact.
The Trump Administration is driving nationwide change to envision new possibilities for rural health care and build a future where all Americans, regardless of where they live, receive the care they deserve.
To learn more about the Rural Health Transformation Program and to access the Notice of Funding Opportunity, visit the program webpage at: https://www.cms.gov/priorities/rural-health-transformation-rht-program/rural-health-transformation-rht-program.
A video message from Dr. Oz, highlighting the importance of this investment in rural health care, is available here: https://youtu.be/DzSrt777t7U
