Today, the Biden Administration is taking action to improve the health of rural communities by making billions of dollars in American Rescue Plan funding available to meet immediate COVID-19 needs. This funding, which will also help rural hospitals stay open in the long run and improve the care provided to rural communities, builds on efforts the Administration has already taken to help rural communities tackle the COVID-19 crisis and improve access to health care. And these actions are only the beginning. President Biden’s Build Back Better agenda – also known as the reconciliation package – will make crucial investments in rural Americans’ health by lowering prescription drug and other health care costs, expanding access to care, and improving maternal health, and the bipartisan infrastructure legislation will improve the quality of drinking water in rural communities.

NEW ACTIONS

Helping health care providers in rural areas cover costs associated with COVID-19 and keep their doors open. The U.S. Department of Health and Human Services (HHS) is providing $8.5 billion in American Rescue Plan funding in the coming weeks to help compensate health care providers who serve rural Medicare, Medicaid, and Children’s Health Insurance Plan (CHIP) patients for lost revenue and increased expenses associated with COVID-19. These funds will help ensure that providers can effectively respond to the COVID-19 pandemic and will place them on stable financial footing to continue serving their communities into the future.
Expanding rural hospitals and providers’ access to COVID-19 vaccines, testing, and supplies, while helping rural health care providers stay financially solvent in the long-term. The U.S. Department of Agriculture (USDA) is using $500 million in American Rescue Plan funding to create the Emergency Rural Health Care Grant Program. The program will provide at least $350 million to help rural hospitals and local communities increase access to COVID-19 vaccines and testing, medical supplies, telehealth, and food assistance, and support construction or renovation of rural health care facilities. Applicants can also apply for recovery funds that compensate for lost revenue or staffing expenses due to COVID-19. In addition, the program will provide up to $125 million in grants to plan and implement models that help improve the long-term viability of rural health care providers, including health care networks that allow rural providers to collectively address community challenges and develop innovative solutions.

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