FOR IMMEDIATE RELEASE
December 29, 2025
CMS Announces Nationwide Rural Health Transformation Program Providing $50 Billion to All 50 States
Los Angeles, CA – HealthBridge US is informing healthcare organizations, providers, and stakeholders of a recent announcement from the Centers for Medicare & Medicaid Services (CMS) regarding the creation of the Rural Health Transformation Program, a federally funded initiative designed to support and modernize healthcare delivery in rural communities across the United States.
The program was established under President Donald J. Trump’s Working Families Tax Cuts legislation (Public Law 119-21) and authorizes $50 billion in federal funding over a five-year period. CMS confirmed that all 50 states have been approved to receive funding, with initial awards beginning in 2026. First-year distributions are expected to average approximately $200 million per state, with individual allocations ranging from roughly $147 million to $281 million.
According to CMS, the funding is intended to expand access to healthcare services in rural areas, reinforce the rural healthcare workforce, upgrade facilities and technology, and support new models of care delivery aimed at improving reliability, efficiency, and patient outcomes in rural settings.
Federal leadership stated that the program is intended to address long-standing disparities affecting rural populations, including limited access to care, workforce shortages, and infrastructure constraints. U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. indicated that the program is structured to give states and local providers flexibility to design solutions that reflect the specific needs of their rural communities. CMS Administrator Mehmet Oz noted that states have submitted comprehensive plans focused on expanding access, modernizing care delivery, and strengthening long-term system sustainability.
Program Scope and Areas of Focus
Under the Rural Health Transformation Program, states will implement multi-year strategies to improve healthcare delivery and coordination in rural regions. CMS has identified several common focus areas across state plans:
Expanding Access to Rural Healthcare Services
States are planning to broaden preventive, primary, maternal, behavioral, and emergency care services, with an emphasis on keeping care local. Strategies include expanding service access points, strengthening emergency medical services communication, implementing treat-in-place options, and improving coordination during patient transfers. Many plans also include prevention-focused initiatives addressing nutrition, physical activity, and chronic disease management.
Supporting and Developing the Rural Healthcare Workforce
Funding will be used to support workforce training programs, residency opportunities, recruitment and retention incentives, and educational pathways that allow rural residents to pursue healthcare careers within their own communities. States are also investing in continued training and support for existing rural clinicians.
Modernizing Facilities, Technology, and Digital Infrastructure
Program investments include upgrades to rural healthcare facilities and equipment, improvements in cybersecurity and interoperability, and expanded use of telehealth and remote patient monitoring technologies. Some states are exploring digital tools and workflow technologies intended to reduce administrative burdens on clinical staff.
Improving Operational Efficiency and Care Coordination
States are prioritizing operational streamlining and stronger coordination among rural providers. Planned initiatives include hub-and-spoke care models, rural regional centers of excellence, shared data platforms, and clinically integrated networks designed to improve continuity of care while keeping services within local communities.
Testing Innovative Care and Payment Models
The program supports the evaluation of new primary care delivery approaches and value-based payment models, as well as expanded collaboration among rural and regional providers to improve sustainability and patient outcomes.
Funding Structure
The Rural Health Transformation Program allocates $10 billion per year from 2026 through 2030. As outlined in Public Law 119-21, half of the annual funding is distributed evenly among participating states to support baseline implementation. The remaining funding is allocated based on state-specific factors, including rural population characteristics, existing healthcare infrastructure, policy initiatives, and the anticipated scale and impact of proposed activities, as defined in the CMS Notice of Funding Opportunity.
CMS has confirmed that funding awards have been issued to all 50 states.
About HealthBridge US
HealthBridge US is a national healthcare consulting and management firm providing regulatory, operational, and compliance support to healthcare organizations across the United States.
