Shapiro Administration Invests $25 Million for Medical Supplies, Equipment and Facility Improvements as Part of First Rural Health Transformation Funding Opportunity |[...]

Pennsylvania was awarded $193 million in federal funding for the first year of its approved five-year RHTP to support access to health care in rural communities.

Harrisburg, PA - The Pennsylvania Department of Human Services (PA DHS) today announced the first funding opportunity through the Rural Health Transformation Plan (RHTP), making $25 million available to qualified entities including hospitals, healthcare providers, and rural health facilities operating in areas eligible for the funding based on the federal government's parameters. This initial funding opportunity will support purchase of supplies and equipment as well as renovations and structural improvements, and funded projects will receive up to $1 million to support these initiatives. Applications for this opportunity can be submitted beginning May 1 through June 1, 2026 via a Rapid Response Stabilization Program Payment Certification.

"After years of gathering feedback and hearing from local leaders across Pennsylvania, we are excited to begin mobilizing resources to support health in rural communities," said PA DHS Secretary Dr. Val Arkoosh. "This funding opportunity will be the first of many, so please stay tuned for additional opportunities focused on EMS, maternal health, digital infrastructure, workforce, and more coming this year."

Pennsylvania was awarded $193 million in federal funding for the first year of its approved five-year RHTP. Years One and Two of the grant will primarily focus on rapid response funding initiatives, while the majority of the plan is built around regional oversight and recommendations for funding. More information about upcoming rapid response funding opportunities is available here.

The Shapiro Administration's RHTP was informed by extensive feedback and experiences of stakeholders across rural Pennsylvania. Pennsylvania's Departments of Human Services and Health, along with Aging, Insurance, and Drug and Alcohol Programs worked collaboratively with rural stakeholders, community and educational leaders, County Commissioners, and the Pennsylvania General Assembly for more than two years, hosting listening sessions, regional rural health summits, and, most recently, open feedback opportunities specific to this funding opportunity.

Based on the feedback received, the Shapiro Administration drafted a comprehensive RHTP in line with the Centers for Medicare and Medicaid Services' primary goals. The Commonwealth's RHTP initiatives focus on:

• Technology and Infrastructure, including the use of consumer-facing applications that support easy access to primary and specialty care
• Workforce, including supporting incentives like upfront scholarships, mentoring, short-term housing, and stipends based on a five-year commitment to service in rural communities
• Maternal Health Services to provide comprehensive care management and navigation between prenatal and postpartum care, behavioral health, and other services to support safe and healthy pregnancies and parenting
• Behavioral Health Services like expanding 988 services and continuing public education on crisis response services
• Aging and Access to facilitate safe transitions from hospitalization to care at home and support quality of care in rural long-term care facilities
• EMS and Transportation to modernize rural EMS infrastructure to improve efficiency and sustainability

RHTP funding comes from the Rural Health Transformation Fund, which was established by the federal budget reconciliation bill last summer. The law included a five-year, $50 billion nationwide grant designed to support rural health. Under federal law, RHTP funds cannot replace existing federal dollars that may be cut or lost due to other program changes.

Funding was allocated by the United States Department of Health and Human Services (HHS) based on rules established by Congress dictating that $100 million per year will be distributed to each approved applicant state with opportunities to receive up to an additional $100 million per year based on state characteristics including rural population, land area, amount of uncompensated care, and the grant submission itself, to be awarded at discretion of the HHS leadership. Unspent funds from states and territories will be reallocated back into the program, so there will be opportunities to pursue additional funding based on program and initiative performance.

For more information on the RHTP and rural health initiatives in Pennsylvania, visit dhs.pa.gov/ruralhealth.

This project is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $193,294,053.98, pending approval of revised budget, with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.