CMS Announces Billions of Dollars in Funding Allocations for Rural Health Transformation Program Grantees
WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Subcommittee on Health, issued the following statement applauding the Centers for Medicare and Medicaid Services’ (CMS) recent announcement of funding allocations for states through the Rural Health Transformation (RHT) program, which was established in President Trump’s Working Families Tax Cuts.
“Our Working Families Tax Cuts law delivered the most historic investment in rural health that we’ve seen in our lifetimes,” said Chairmen Guthrie and Griffith.“The RHT program will provide funding to transform health care systems so that we can help assure the long-term sustainability of our rural providers for years to come. We applaud Secretary Kennedy and Administrator Oz on this critical effort, and we look forward to seeing states use these resources to bolster health care delivery through innovative solutions in rural America.”
Allocations of funding were based upon rigorous, data-driven merit review—led by federal and non-federal rural health experts and overseen by senior federal review directors—to assess each state’s proposed initiatives and alignment with program goals to ensure a fair, transparent, and consistent merit review process across all states.
Funding will be distributed over five years beginning in federal fiscal year 2026. As states begin implementation, program officers from CMS’s Office of Rural Health Transformation will provide technical assistance and ongoing support to help states design, launch, and sustain initiatives that best serve their rural communities.
CLICK HERE to view a list of each State’s allocated RHT funds.
Background on the Rural Health Transformation Program:
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The Rural Health Transformation (RHT) Program was created by the Working Families Tax Cuts law and empowers states to strengthen rural communities across America by improving access to quality health care outcomes and transforming the health care delivery ecosystem.
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RHT funding will be allocated through the following formula:
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$25 billion over five years will be distributed evenly among the states; this means each state will receive $100 million each year for FY 2026-2030 ($500 million total).
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$25 billion will be distributed to states based on criteria established by the Secretary that target funding to states with high rural health care needs and that outline long-term programmatic goals that will transform access to care in the state.
In accordance with the law, only the 50 states are eligible to receive an RHT Program award; the District of Columbia and U.S. Territories are not eligible.