KFF November 6, 2025
Issue Brief
The July 2025 budget reconciliation law, known as the One Big Beautiful Bill, established the Rural Health Transformation Program (referred to here as the “rural health fund”), which will distribute $50 billion to states with approved applications. The rural health fund was created to help offset the impact on rural areas of the law—which includes an estimated $911 billion in federal Medicaid spending reductions over ten years, including an estimated $137 billion in rural areas based on KFF estimates. The fund was also motivated by ongoing concerns about the financial vulnerability of many rural hospitals. CMS has indicated that the funds are intended to be used for investments in “system transformation” rather than for “perpetual operating expenses.” Funds...
Today's Sponsors
Today's Sponsor