Overview
- CMS detailed a five-year, $50 billion Rural Health Transformation Program created under the Working Families Tax Cuts legislation, with $10 billion a year scheduled for 2026–2030.
- First-year allocations average about $200 million per state and range from roughly $147 million to $281 million, including Texas at $281.3 million, Alaska at $272.2 million, and California at $233.6 million.
- Half of each year’s funds are split evenly among states, while the remainder is weighted by rurality, existing rural infrastructure, and expert merit review of state proposals.
- Implementation will be closely monitored through dedicated CMS project officers, annual progress reporting, a 2026 Rural Health Summit, and yearly re-scoring, with officials saying funds may be clawed back if commitments are not met.
- The grants target workforce strengthening, facility and technology upgrades, and innovative care models such as telehealth, treat-in-place and behavioral health, with encouraged uses including AI documentation tools, cybersecurity, interoperability, drones for delivery, and robotic ultrasound pilots; a reported 15% cap limits direct provider payment.