States can apply before November 5, 2025 to receive funding through the Rural Health Transformation Program to address specific rural health challenges.
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 to strengthen healthcare across rural America.
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.
“This unprecedented investment is designed to empower states to transform the existing rural healthcare infrastructure and build sustainable healthcare systems that expand access, enhance quality of care, and improve outcomes for patients,” CMS says.
“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 healthcare for rural Americans,”
“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,” said US Health and Human Services Secretary Robert F. Kennedy, Jr.
The Program has five strategic goals, grounded in the statutorily approved uses of funds:
- Make rural America healthy again: Support rural health innovations and new access points to promote preventative health and address root causes of diseases.
- Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability.
- Workforce development: Attract and retain a highly skilled healthcare workforce by strengthening recruitment and retention of healthcare providers in rural communities.
- Innovative care: Spark the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements.
- 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.