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CMS Rural Health Transformation Program is sponsored by Centers for Medicare & Medicaid Services (CMS) via Tennessee Department of Health (TDH). A major federal initiative designed to strengthen rural health systems across all 50 states. Tennessee is participating to improve access, quality, workforce stability, innovation, and technology in rural communities.
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CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States | CMS CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States The Centers for Medicare & Medicaid Services (CMS) today announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation (Public Law 119-21) to strengthen and modernize health care in rural communities across the country.
In 2026, states will receive first-year awards from CMS averaging $200 million within a range of $147 million to $281 million. This unprecedented federal investment will help states expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home.
“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.
Thanks to President Trump’s leadership, rural Americans will now have affordable healthcare close to home, free from bureaucratic obstacles. ” “Today marks an extraordinary milestone for rural health in America,” said CMS Administrator Dr. Mehmet Oz .
“Thanks to Congress establishing this investment and President Trump for his leadership, 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. CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families.
” A Nationwide Commitment to Strengthen Rural Health Care The Rural Health Transformation Program is a national commitment to improving the health and well-being of rural communities across the country. With this funding, states will implement comprehensive strategies to improve care delivery, support providers, and advance new approaches to coordinating health care services across rural communities.
Across the country, many states are planning efforts that will: Bring More Care Within Reach States will advance Make Rural America Healthy Again goals by expanding preventive, primary, maternal, and behavioral health services and creating new access points that bring care closer to home and help preserve strong local health systems.
Many states are implementing evidence-based, outcomes-driven strategies—such as physical fitness and nutrition programs, food-as-medicine initiatives, and chronic disease prevention models—to address root causes of diseases and manage chronic conditions. States will also strengthen rural emergency care through improved emergency medical services (EMS) communication, treat-in-place options, and coordinated transfers.
Strengthen and Sustain the Rural Clinical Workforce States will support clinical workforce training, residencies, recruitment and retention incentives, and new pathways that help students begin health care careers in their own communities. States are also investing in programs to train and support the existing clinical workforce and build futures close to home.
Modernize Rural Health Infrastructure and Technology Investments will modernize rural facilities and equipment; strengthen cybersecurity and interoperability; and expand telehealth, remote patient monitoring, and digital tools that enable timely access to care. States are also exploring the use of technology such as AI scribes and clinical workflow improvement tools to reduce burdens on clinicians.
Driving Structural Efficiency & Empowering the Community Providers States will prioritize streamlining operations, empowering providers to enhance coordination of care and resources, and building partnerships across the state with the goal of keeping care local.
This includes establishing specialized hub-and-spoke models, rural regional centers of excellence, comprehensive data-sharing platforms, and rural clinically integrated networks.
Advance Innovative Care Models and Payment Reform States will test new primary care and value-based care models, strengthen partnerships among rural and other providers, and promote regional collaboration that improves health sustainability and patient outcomes.
Awardees and Funding Amounts The Rural Health Transformation Program’s $50 billion in funds will be allocated to approved states over five years, with $10 billion available each year from 2026 through 2030. As directed by Public Law 119-21: 50% of the funding is distributed equally among all approved states .
This provides states with a strong foundation to begin implementing their Rural Health Transformation Plans; and 50% is allocated based on a variety of factors.
As described in the Notice of Funding Opportunity , those factors include individual state metrics around rurality and a state’s rural health system, current or proposed state policy actions that enhance access and quality of care in rural communities, and application initiatives or activities that reflect the greatest potential for, and scale of, impact on the health of rural communities.
All scoring factors are outlined further in the Notice of Funding Opportunity. CMS made funding awards to all 50 states. State Award List (Alphabetical) A Strong Partnership with States to Deliver Lasting Change With today’s announcement, CMS launches a new phase of collaboration with every state to accomplish their transformative visions.
CMS project officers dedicated to each state will convene program kickoff meetings and provide ongoing guidance and technical assistance during implementation. States will submit regular updates so CMS can track progress, identify proven approaches, support successful execution of their plans, and ensure strong oversight throughout the program.
States will also convene annually at the CMS Rural Health Summit—to be held during the CMS Quality Conference in 2026—to share lessons learned, highlight effective models, and accelerate innovation across regions.
CMS evaluated applications through a rigorous merit review process, consistent with standard HHS grantmaking procedures, that incorporated assessments from federal and non-federal subject matter experts with unique perspectives relevant to rural health. These individuals represented expertise across clinical, operational, workforce, technology, and payment mechanism disciplines.
Reviewers were screened for conflicts of interest and did not assess applications from states with which they had personal or professional ties. Applications were evaluated using a structured scoring framework outlined in the Notice of Funding Opportunity and aligned with statutory goals, ensuring a fair and consistent process across all 50 states.
The program follows standard HHS grants policy, including protections that ensure the integrity of the merit review process, consistent with longstanding HHS practices for competitive grant and cooperative agreement programs. Additional information on the Rural Health Transformation Program, including the Notice of Funding Opportunity, is available at: http://www. cms.
gov/RHTProgram . To view the Rural Health Transformation Program State Project Abstracts visit https://www. cms.
gov/files/document/rht-program-state-provided-abstracts. pdf Trump Administration Announces $11. 7 Million to Expand Access, Improve Patient Care Facilities, and Strengthen Workforce Capacity in Nursing Homes and Long-Term Care System Across Rural Vermont Trump Administration Announces $4.
8 Million to Strengthen West Virginia’s Rural Healthcare Workforce and Expand Preventive Care Trump Administration Invests $25 Million to Modernize Healthcare Technology, Expand Telehealth, and Improve High-Speed Internet Connectivity Across Michigan Trump Administration Announces $5. 48 Million to Strengthen Healthcare Workforce Pipeline in Rural Rhode Island Catherine Howden, Director
According to the current listing, eligibility includes: Projects that strengthen healthcare access, improve health outcomes, and advance the long-term sustainability of rural healthcare systems across Tennessee. Confirm the full requirements in the official notice before applying.
The current listing shows up to $50 billion nationwide over five years (FFY 2026–2030), various award amounts available in Tennessee. Verify award ceilings, matching requirements, and allowable costs in the official notice.
CMS Rural Health Transformation Program is funded by Centers for Medicare & Medicaid Services (CMS) via Tennessee Department of Health (TDH). Verify program details on the funder's official page before applying.
This opportunity targets applicants in Tennessee. If your organization operates elsewhere, check the official notice for location requirements.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
CMS awarded the entire $50 billion Rural Health Transformation Program to all 50 states, with first-year checks averaging $200M per state and money starting to move October 1, 2026. The federal contest is over — but for rural hospitals, clinics, behavioral-health providers, and nonprofits, the real competition is just beginning inside each state's sub-grant process. Here is how the money splits, what it can fund, and how to position now.
Read articleCMS awarded all 50 states their first-year slice of the $50 billion Rural Health Transformation Program in December 2025 — from $147M in New Jersey to $281M in Texas. Now the money is moving downstream: New Jersey and New York have already launched subaward RFAs, and rural hospitals, clinics, community organizations, and tribal groups are the eligible applicants. Here is how the allocation formula worked, what the money can and cannot fund, and the strategy to win a state subaward.
Read articleTennessee's $206.9M RHTP allocation begins distribution with a 30-day virtual maternal/child mental health consultation grant. The state plans a new opportunity every Friday — the cadence and structure here are the blueprint for how the $50B nationwide program rolls out.
Read article