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All 50 States Apply for $50 Billion Rural Health Transformation Funding

CMS begins reviews now, with award notifications due Dec. 31.

Overview

  • CMS says every state met the Nov. 5 deadline and will be considered for funding that begins disbursing in fiscal 2026 over five years.
  • The $50 billion program splits evenly between equal baseline shares for approved states and a separate pool awarded through a merit review.
  • States will administer the cooperative agreements, and CMS’ Office of Rural Health Transformation will provide technical assistance during implementation.
  • Several states detailed plans this week, including Arkansas seeking $1 billion across four initiatives and Alabama outlining $500 million for 11 projects focused on access and viability.
  • Analysts warn the fund will only partially offset broader Medicaid reductions, leaving continued financial pressure on rural providers.