Becker's Healthcare January 9, 2026
States are beginning to sketch out plans to deploy billions of dollars in new federal funding aimed at stabilizing and transforming rural healthcare, but early signals point to wide variation in approach and persistent uncertainty for rural hospitals waiting to understand when, how and whether funds will reach local providers.
CMS awarded $50 billion across all 50 states through its new Rural Health Transformation Program, a five-year initiative running from 2026 through 2030. The program will distribute $10 billion annually, with half of the funds allocated equally across states and the remainder awarded based on factors such as rural population, land mass, facility needs and proposed policy actions.
While first-year awards were finalized Dec. 29, many states have not yet...
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