CMS announces state distribution of $50 billion in rural health funds

The Centers for Medicare & Medicaid Services Dec. 29 announced $50 billion in funds awarded to all 50 states through the Rural Health Transformation Program. Beginning in 2026, states will receive first-year awards averaging $200 million to expand access to care, bolster the rural workforce, modernize facilities and technology, and support innovative payment and care delivery models.

Funds will be allocated over the next five years, with $10 billion available each year through 2030. Fifty percent of the funding is distributed equally among all approved states, while the additional 50% is allocated based on rural health needs and proposed impact.

Earlier this year, AHA urged CMS to prioritize payments to hospitals from the Rural Health Transformation Program for workforce recruitment and retention, infrastructure and telehealth services, and to report these funds separately on Medicare cost reports.