HealthsystemCIO.com December 31, 2025
CMS will distribute $10 billion annually over five years to all 50 states for technology infrastructure, workforce development, and care delivery transformation in rural communities, marking the largest federal investment in rural health systems to date. The Rural Health Transformation Program awards states between $147 million and $281 million in fiscal year 2026, with funding designed to modernize facilities, expand telehealth capabilities, and address chronic workforce shortages affecting more than 60 million Americans in rural areas.
The initiative stems from the Working Families Tax Cuts legislation signed into law earlier this year. Half the funding will be distributed equally among participating states, while the remaining half will be allocated based on rurality metrics, existing state policies that enhance rural care...
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