CMS has awarded $50 billion to strengthen rural health in all 50 states through the Rural Health Transformation Program (RHTP). This is the largest rural health investment in United States history and marks the beginning of a five-year implementation period. The goal is to expand access to care, modernize health systems, build workforce capacity, and support sustainable models that keep care local.
Key Points
• $50 billion invested from 2026 through 2030
• $10 billion released each year
• Every state has received funding
• Average first-year award: approximately $200 million
• Funding focuses on access, workforce, infrastructure, and care innovation
Where Funding Will Be Used First
Access Expansion
• New care access points
• School-based care, mobile care, and rural satellite sites
• Behavioral health, maternal health, and chronic disease services
• Emergency medical services modernization
Workforce Strengthening
• Loan repayment and retention support
• Rural residency and clinical training pathways
• Educational partnerships to develop local talent
• Care team redesign and support staffing
Infrastructure and Technology
• Facility modernization and expansion
• Telehealth and remote monitoring
• Cybersecurity and interoperability
• Data sharing systems to support coordinated care
Care Model Innovation
• Primary care redesign
• Value-based care pilots
• Network collaboration across regions
• Shared services to keep care local
Funding will be routed by the states. Organizations must align with state priorities to be competitive.
Strategic Takeaways for Organizations Seeking Funding
• State strategies determine which projects move forward
• Alignment, readiness, and partnerships will matter
• Proposals need outcomes, milestones, and sustainability
• Planning should begin before opportunity windows open
• Data and feasibility will carry weight
If you need funding, your project must fit into a state direction or existing initiative.
Highest Award States
Texas, Alaska, California, Montana, and Kansas received the largest awards. These states are expected to move early and drive large-scale pilot activity. To see how much each state received, visit: https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states
Bottom Line
This funding is creating real possibilities for rural organizations that are ready to act. The most competitive projects will:
• Address a known statewide priority
• Demonstrate measurable outcomes
• Strengthen rural access and sustainability
• Build partnerships that scale impact
• Show readiness to implement within the funding window
State alignment, clarity, and preparation will determine success.
Burrows Consulting supports healthcare organizations with RHTP alignment, readiness, and positioning to pursue state-directed funding. Reach out here: https://burrowsconsulting.net/contact/
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