Pennsylvania Gets $35 Million to Expand Rural Hospital Care

Centers for Medicare & Medicaid Services

WASHINGTON, D.C. — Pennsylvania will receive $35 million in federal funding to upgrade medical screening equipment, open additional operating rooms and expand patient transportation in rural communities, part of a broader $193.3 million statewide health care allocation for fiscal 2026.

The funding comes through the Rural Health Transformation Program, a $50 billion, five-year national initiative administered by the Centers for Medicare & Medicaid Services.

The latest allocation will help rural hospitals and health care providers purchase equipment and supplies, renovate facilities, make structural improvements and modernize medical technology.

Additional priorities include emergency and nonemergency transportation, behavioral health services, maternal care, workforce support and improved coordination among rural providers.

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The administration has already distributed $42 million to support 66 projects across Pennsylvania, separate from the newly announced $35 million allocation.

Sen. Dave McCormick identified Pennsylvania’s total fiscal-year allocation as $193,294,054.

“Today’s $35 million in Rural Health Transformation Program funding will allow hospitals and providers across the Commonwealth to invest in the equipment and supplies that translate directly into better outcomes for patients,” McCormick stated.

The program targets barriers that can delay care in rural communities, including limited operating capacity, aging facilities, outdated diagnostic equipment and insufficient transportation.

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Rep. Ryan Mackenzie indicated that communities in the Lehigh Valley and the Poconos could benefit from investments in facilities, transportation, maternal care and mental health services.

Rep. Rob Bresnahan emphasized the potential to strengthen hospitals and rural providers across northeastern Pennsylvania, while Rep. Dan Meuser identified access to care in Pennsylvania’s 9th Congressional District as a priority.

Rep. John Joyce, a physician who practiced in rural communities for more than 25 years, pointed to the need for workforce investments alongside updated facilities and technology.

“These investments will strengthen our healthcare workforce, modernize technology and facilities, and ultimately deliver better care and outcomes for patients across Pennsylvania,” Joyce stated.

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Health and Human Services Secretary Robert F. Kennedy Jr. indicated that states have flexibility to direct funding toward local needs while remaining accountable for results.

The Rural Health Transformation Program was established under the Working Families Tax Cuts Act, which passed with Republican support and unanimous Democratic opposition, according to the administration.

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