WASHINGTON, D.C. — Pennsylvania is set to receive more than $193.2 million in new federal funding as part of what federal officials are calling the largest rural health care investment in American history.
The funding is part of the Rural Health Transformation Program, a $50 billion initiative announced on Monday by the Centers for Medicare and Medicaid Services, which will deliver awards to all 50 states. The program was established under President Trump’s Working Families Tax Cuts legislation and is designed to strengthen and modernize health care systems in rural communities nationwide.
Senator Dave McCormick, a Republican from Pennsylvania, praised the announcement, saying the investment will significantly expand access to care across the state’s rural regions.
“The Trump Administration today announced the largest federal investment in rural healthcare in American history, which will deliver hundreds of millions of dollars in additional funding to Pennsylvania,” McCormick said. He added that the funding will help improve health outcomes, strengthen the rural health workforce, modernize facilities through technology, and support new and innovative models of care, making quality health services more accessible closer to home.
Pennsylvania’s fiscal year 2026 award totals $193,294,054, placing it near the national average for first-year state funding. CMS said first-year awards will average about $200 million per state, with allocations ranging from $147 million to $281 million based on a mix of equal distribution and need-based factors tied to rurality, system capacity, and proposed policy actions.
Health and Human Services Secretary Robert F. Kennedy, Jr. described the program as a major shift in how rural health care is supported at the federal level.
“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Kennedy said. He credited President Trump’s leadership with empowering local hospitals, clinics, and health workers to take greater control of health care delivery in their communities.
CMS Administrator Dr. Mehmet Oz said the program marks a turning point for rural health policy, emphasizing state-driven solutions and long-term structural improvements. He said states are moving forward with plans to expand access, modernize facilities, strengthen clinical workforces, and adopt innovative care and payment models tailored to local needs.
According to CMS, the funding will support a wide range of initiatives, including expanded preventive and primary care, maternal and behavioral health services, improved rural emergency care, workforce training and retention programs, upgraded facilities and technology, expanded telehealth, and new value-based care models. The program also encourages states to pursue operational efficiencies and partnerships that keep care local while improving coordination across regions.
The $50 billion program will be distributed over five years, with $10 billion allocated annually from 2026 through 2030. Half of the funding is distributed equally among participating states, while the remaining half is awarded based on state-specific metrics and the projected impact of proposed rural health initiatives.
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