CMS Opens Applications for Historic $50 Billion Rural Health Investment

The Centers for Medicare & Medicaid Services (CMS) has launched the Rural Health Transformation Program, a record-breaking $50 billion initiative to strengthen health care in rural America.

Created under the Working Families Tax Cuts Act, this is the largest federal investment in rural health care in U.S. history.

Read: HHS Expands Access to Affordable Health Insurance Through Hardship Exemptions
 

Why It Matters for Rural Communities

Rural areas often struggle with rising medical costs, too few doctors, and outdated facilities, making it harder for families to get the care they need.

This program gives states a chance to apply for funding that will directly improve access, quality, and sustainability of care in rural regions.

You may have access to support you didn’t know about. Find out more here!
 

Program Goals

CMS has set five main goals for the initiative:

• Healthier communities: Expand preventive care and address chronic diseases.

• Reliable access: Help rural clinics and hospitals stay open long-term.

• Workforce support: Recruit and retain skilled health care workers.

• Better care models: Encourage patient-centered and coordinated health systems.

• Technology upgrades: Expand telehealth, digital tools, and secure health data systems.

How the Funding Works

• Total investment: $50 billion over five years.

• Annual distribution: $10 billion each year starting in fiscal year 2026.

• Split: Half will be divided equally among states that apply; the other half goes to states showing the strongest potential impact.

Dates for States

• Application deadline: November 5, 2025

• Awards announced: December 31, 2025

• Funding starts: Fiscal year 2026

Each state gets only one chance to apply, making this a highly competitive program. CMS will oversee implementation to ensure funds bring lasting change.
 

Why It’s Urgent?

Although nearly 20% of Americans live in rural areas, they face more barriers to care, higher rates of chronic disease, and longer travel times to reach providers.

This program is designed to close those gaps and deliver affordable, high-quality health care where it’s needed most.

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