CMS Launches $50 Billion Program for Rural Health Transformation
- Sep 18
- 2 min read
The Centers for Medicare and Medicaid Services (CMS) has initiated a monumental endeavor: the Rural Health Transformation Program, which will allocate $50 billion over five years to revitalize healthcare in rural communities across the United States. This historic investment, deemed the largest ever made to improve healthcare in these areas, aims to close access and quality gaps that have affected over 60 million rural Americans.
The program will disburse $10 billion annually starting in federal fiscal year 2026. Eligible providers, such as rural hospitals, critical access hospitals, federally qualified health centers, and rural clinics, can access these funds by collaborating with their respective state health departments. All 50 states have been invited to apply.
The deadline for states to submit their applications is November 5, 2025. This is the only opportunity to apply for funding. Awardees will be announced by December 31, 2025. Half of the funds will be distributed evenly among all approved states, while the other half will be allocated based on individual state metrics and the potential for impact on rural communities' health. These metrics can include rural population, the proportion of rural health facilities, and the situation of certain hospitals.
CMS has outlined five key strategic goals for the program:
Support rural health innovations promoting preventative health and addressing the root causes of diseases.
Help rural providers become long-term access points for care by improving efficiency and sustainability.
Attract and retain a highly skilled healthcare workforce by strengthening recruitment and retention of healthcare providers in rural communities.
Spark the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements.
Foster the use of innovative technologies that promote efficient care delivery, data security, and access to digital health tools.
The program, established under the "One Big Beautiful Bill Act" or "Working Families Tax Cuts Act", is a crucial response to the disparity in health outcomes faced by rural residents. Health and Human Services Secretary Robert F. Kennedy Jr. stated that this is "the largest investment ever made to improve healthcare for rural Americans," aimed at "delivering dignity and dependable care". CMS Administrator Dr. Mehmet Oz emphasized, "For too long, when it comes to health care access and infrastructure, we've left behind the backbone of America. That stops now".
It is important to note that CMS has clarified that these funds are not intended to offset Medicaid cuts nor replace payments for clinical services that could be reimbursed by insurance. The goal is an investment with sustainable impact beyond the program's duration. States must submit plans that address at least three of the eleven permitted initiatives. These initiatives can include promoting evidence-based interventions for prevention and chronic disease management, providing payments to healthcare providers, and promoting consumer-facing, technology-driven solutions.
🔖 Sources
Comments