Trump Admin Launches $50 Billion Rural Health Transformation Program
The $50 billion Rural Health Transformation Program aims to prevent rural hospital closures and expand services with an average $200 million awarded per state, officials said.
- On Monday the Trump administration announced the first-round rollout of a $50 billion Rural Health Transformation Program, distributing 2026 first-year awards averaging $200 million to all 50 states.
- The One Big Beautiful Bill included $10 billion annually for five years amid concerns from lawmakers, including moderate Republicans, that Medicaid cuts could force hospital closures and leave millions uninsured.
- Each year, the program divides $5 billion equally among states and another $5 billion using a CMS formula that includes rural population and health outcomes, with about 20% tied to states' applications and policy commitments.
- Texas will receive the largest first-year award of more than $281.3 million, and states say they will use awards to keep hospitals open, expand telehealth, and recruit staff.
- Critics say the $50 billion will not offset the nearly $1 trillion in Medicaid cuts, with U.S. Health and Human Services Secretary Robert F. Kennedy Jr. stating, `'This historic investment puts local hospitals, clinics and health workers in control of their communities'`.
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Sens. Cramer, Hoeven react to Rural Health Transformation Plan funding
WASHINGTON — The U.S. Centers for Medicare and Medicaid (CMS) announced the North Dakota Department of Health and Human Services will receive $199 million in initial funding for its Rural Health Transformation Plan (RHTP). North Dakota Senators Kevin Cramer and John Hoeven say the funding is a commitment from the Trump Administration. “Rural hospitals are essential to the health and economic stability of their communities,” said Cramer. “The cr…
Trump rural health grants come with clawback threat to states
The Trump administration is announcing awards to states from a rural healthcare fund, with the threat that some of that money can be clawed back if jurisdictions fail to embrace policy initiatives backed by the president. Read more...
Trump admin unveils rural health care initiative with eye on helping underserved, preventing fraud
The Rural Health Transformation Program represents the largest federal investment in rural healthcare in history to modernize access, strengthen workforces, and deploy innovative models in underserved communities.
Trump Admin Launches $50 Billion Rural Health Transformation Program
The Trump administration plans to distribute between $147 million and $281 million to each U.S. state in 2026 through a widespread rural health program designed to provide better access to medical care in rural areas. The effort, which is one aspect of the One Big Beautiful Bill Act, earmarks $50 billion across five fiscal years, making available $10 billion annually from 2026 to 2030 to all 50 states. Centers for Medicare & Medicaid Services Ad…
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