The Centers for Medicare & Medicaid Services (CMS) will distribute $50 billion over five years to support rural healthcare initiatives in all 50 states.

The funding, part of the Rural Health Transformation Program authorized by Public Law 119-21, is intended to expand access, upgrade infrastructure, and support workforce development in rural areas.

States will receive an average of $200 million in first-year funding in fiscal year 2026, with individual awards ranging from $147 million to $281 million. The funding will continue annually through 2030, with $10 billion released each year.
The program prioritizes several areas of investment: expanding preventive and behavioral care, enhancing emergency response systems, and modernizing rural facilities and technology infrastructure. States are also expected to test new care models and explore value-based payment approaches tailored to rural communities.

Half of the total funding is distributed equally across states. The remaining half is allocated based on metrics such as rural population size, current healthcare capacity, and the potential impact of proposed initiatives.

“More than 60 million Americans living in rural areas have the right to equal access to quality care,” said Health and Human Services Secretary Robert F. Kennedy, Jr. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ healthcare.”

CMS Administrator Dr. Mehmet Oz called the announcement a turning point. “States are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running,” he said.

CMS will provide ongoing technical support and oversight throughout the implementation period. States will convene annually at a rural health summit hosted during the CMS Quality Conference to exchange best practices and monitor progress.

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