Applications Now Open For $50 Billion Rural Health Transformation Program

WASHINGTON - U.S. Senator Jerry Moran (R-Kan.) today announced that applications are open for states to access funding from the $50 billion Rural Health Transformation (RHT) Program, which was created in the Reconciliation Bill to direct the Centers for Medicare and Medicaid Services (CMS) to work with states to identify the root challenges facing rural health providers and invest in solutions to improve outcomes for struggling providers. Kansas providers are estimated to receive approximately $1 billion over the next five years.

Applications are now open for states to apply for this opportunity with CMS. In the coming days, the State of Kansas will provide more information on the process Kansas will use to assemble its application.

"The Rural Health Transformation Program is a significant investment in rural health care and will help improve outcomes for struggling hospitals, invest in new technology and bolster rural communities," said Sen. Moran. "I worked with my colleagues to establish this critical fund, and every state will have the opportunity to submit a one-time application tailored to the needs of the state, with no match required by the state. I look forward to working with our health care leaders and Governor Kelly to make certain Kansas providers can receive the resources they need to improve the long-term success of rural providers."

Sen. Moran helped establish the rural provider fund as a part of the Reconciliation Bill, which was signed into law by the President on July 4. On July 3, Sen. Moran joined a town hall with more than 100 Kansas hospital leaders to outline changes made in the Reconciliation Bill for rural hospitals specifically, highlighting the Rural Health Transformation Program. State employees, health care providers and interested members of the public will be able to participate in several webinars with CMS to learn how to strengthen and aid in the submission of their state's one-time application for federal resources.

Last week, CMS also approved Kansas' 2025 provider tax preprint, increasing the hospital provider tax to 6% from 3%. This will generate revenue from prospective payment system (PPS) hospitals in Kansas, which in turn is matched by federal Medicaid dollars. This change will increase Medicaid rates to Kansas hospitals and physicians and is expected to generate approximately $1 billion annually for Kansas hospitals.

Items to note:

• Funds from the program will be allocated to approved states over five years, with $10 billion available each year from Fiscal Year 2026 through Fiscal Year 2030.
• • The funding requires no state match; it is a federal-only investment aimed at helping to improve outcomes for struggling healthcare providers.
  • This is a one-time application with no renewal required, making certain states and providers have access to the funding over the next five years without needing to reapply.
  • Community health centers, struggling urban hospitals, federally qualified health centers, opioid treatment programs, community mental health centers and community behavioral health clinics in Kansas will also be eligible recipients of this investment.
• In collaboration with CMS, states must submit detailed rural health transformation plans for improving access to care. CMS will monitor implementation in order to make certain resources are being targeted to best support struggling providers and improve health outcomes in rural communities.

The deadline for states to apply is November 5, 2025; awardee decisions will be made by December 31, 2025.

CMS will hold an informational webinar for stakeholders on the RHT Program today, September 19, 2025 at 2:00 - 3:30 p.m. CT. Register in advance for this webinar HERE. After registering, individuals will receive a confirmation email containing information about joining the webinar.

More information on the Rural Health Transformation Program and details on how to apply can be found HERE.

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