WASHINGTON, D.C. — The Trump Administration announced a sweeping $50 billion initiative to overhaul rural health care, unveiling details last week on how states can apply for funding to strengthen access, quality, and outcomes in underserved communities.
The Rural Health Transformation Program, created under the Working Families Tax Cuts Act, marks the largest federal investment ever directed at rural health. Funds will allow states to reimagine local health systems, expand access points, and adopt sustainable, state-driven solutions tailored to unique regional challenges.
“Rural communities are the bedrock of America. They have waited too long for Washington to act,” said U.S. Health and Human Services Secretary Robert F. Kennedy, Jr. “This $50 billion program is about delivering dignity and dependable care to rural communities, making sure every American has access to affordable, high-quality treatment.”
CMS Administrator Dr. Mehmet Oz said the effort is designed to reverse decades of neglect. “For too long, when it comes to health care access and infrastructure, we’ve left behind the backbone of America. That stops now with this program that will spark real change for rural health care,” he said.
The program sets out five strategic goals: supporting preventative health innovations, ensuring sustainable access to care, expanding and retaining the rural health workforce, developing new care models, and promoting digital and technological innovation.
Funding will be distributed over five years, beginning with $10 billion in fiscal year 2026. Half of the funds will be evenly divided among states with approved applications, while the remaining half will go to states demonstrating the greatest potential for measurable impact.
States have until Nov. 5, 2025, to apply. CMS plans to announce awardees by Dec. 31, 2025, with oversight to ensure accountability and long-term results.
The administration described the initiative as part of a broader push to rebuild America’s health infrastructure and close longstanding gaps between rural and urban communities.
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