New Federal Initiative Seeks to Revolutionize Rural Health Care Across the U.S.
Today, the Centers for Medicare & Medicaid Services (CMS) released guidance for states to apply for funding from the $50 billion Rural Health Transformation Program, established under the Working Families Tax Cuts Act to strengthen healthcare across rural America. This historic investment is intended to enable states to revamp rural healthcare infrastructure, creating sustainable systems that expand access, improve quality, and enhance patient outcomes.
“Rural communities are the backbone of America. They have waited too long for action from Washington. Now, we are delivering the largest investment ever to improve healthcare for rural Americans,” said U.S. Health and Human Services Secretary Robert F. Kennedy, Jr. “This $50 billion program ensures dignity and reliable care for rural communities, giving every American access to affordable, high-quality treatment.”
“This program represents a transformative investment that will drive lasting improvements in rural health systems and positively impact generations to come,” said CMS Administrator Dr. Mehmet Oz. “For too long, rural America has been overlooked in terms of healthcare access and infrastructure. This initiative will bring meaningful change and support stronger, healthier communities.”
The Rural Health Transformation Program invites all 50 states to apply for funding tailored to their unique rural healthcare challenges. The program empowers states to reimagine care delivery and develop innovative, long-term, state-led solutions that address the underlying causes of poor health outcomes in rural areas.
The program is guided by five strategic goals, aligned with the legally authorized uses of its funding:
- Make Rural America Healthy Again: Support rural health innovations and new access points to promote preventative health and address the 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 providers in rural communities.
- Innovative Care: Encourage the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements.
- Tech Innovation: Promote the use of innovative technologies that enhance efficient care delivery, data security, and access to digital health tools for rural facilities, providers, and patients.
The $50 billion program will distribute funding to approved states over five years, with $10 billion available annually starting in federal fiscal year 2026. Half of the funds will be allocated equally among all states with approved applications, while the remaining half will be awarded based on state-specific metrics and applications demonstrating the greatest potential impact and scalability in improving rural health outcomes.
States must submit their applications by November 5, 2025, as there is only a single application period for this program. CMS will announce the selected awardees by December 31, 2025, and will collaborate with states throughout the program to ensure effective oversight and successful implementation of initiatives with long-term benefits.
The administration aims to drive nationwide transformation, reimagining rural healthcare and building a future in which all Americans, regardless of location, have access to high-quality care.
