Arrington Delivers Historic Rural Health Investment, Texas Awarded Largest Allocation in Nation

Washington, D.C. - Today, House Budget Chairman Jodey Arrington (TX-19) announced Texas will receive the largest rural health investment of any state under the newly established Rural Health Transformation Program. Created by legislation authored and passed by Chairman Arrington earlier this year, the program will provide Texas with a historic $1.4 billion investment to strengthen rural hospitals and expand access to care across West Texas and rural communities statewide.

"You won't have the next generation of ag and energy producers providing America with food security and energy independence without access to basic health care in rural communities. Yet for years, Rural America has faced a growing health care crisis marked by fewer providers, reduced services, and declining access to quality care.

"To combat this crisis, the One Big Beautiful Bill established the 'Rural Health Transformation Program,' the largest and most comprehensive investment in rural health care in modern history - delivering a historic $50 billion commitment to strengthen rural hospitals and expand access to care.

"Today, I am proud to announce the Centers for Medicare & Medicaid Services (CMS) awarded Texas the highest allocation of any state under this program, directing landmark investments to strengthen rural hospitals, expand access to care for our cowboys and plowboys, and secure a healthier future for the next generation of Texans. This is a major win for our region, our great state, and the heartland of America - ensuring our rural communities remain healthy, strong, and thriving for years to come." - Chairman Jodey Arrington.

Background:

• CMS Office of the Actuary estimates Medicaid in total spent $19 billion on rural hospitals in 2024.
• The Rural Health Transformation Program will provide an additional $10 billion each year from 2026 through 2030, representing a substantial increase in overall funding for rural hospitals.
• Texas will receive $281 million each year for five years.
• Texas Health and Human Services Commission (HHSC) will award qualified applicants including rural hospitals, rural federally qualified health centers, rural behavioral health providers, and local governments.
• HHSC will use a competitive process to allocate funds to:
  • educate and attract health professionals to rural towns
  • invest in telehealth services to improve rural access
  • mitigate chronic disease
  • develop proactive wellness and nutrition programs
  • improve cybersecurity defenses to protect patient data
  • upgrade equipment in rural hospitals and clinics

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