CMS Awards $50 Billion to Strengthen Rural Health in All 50 States
March 20, 2026 · 2 min read
David Almeida
The Centers for Medicare & Medicaid Services announced that every state in the nation will receive funding under the $50 billion Rural Health Transformation Program (RHTP), created under the Working Families Tax Cuts legislation (Public Law 119-21). The program allocates $10 billion annually from 2026 through 2030, making it the largest dedicated federal investment in rural healthcare infrastructure in U.S. history.
First-Year Awards Range From $147 Million to $281 Million
In 2026, states will receive first-year awards averaging $200 million, with amounts ranging from $147 million in New Jersey to $281 million in Texas. Half the funding is distributed equally among all approved states; the remaining half is allocated based on rurality metrics, state policy actions that enhance rural care access, and the potential scale of impact.
Connecticut, for example, is directing its $154 million first-year award toward mobile clinic pilots, workforce pipeline programs through the Area Health Education Center and UConn Health Center, and community health navigator services.
Eligible Activities Span Workforce, Facilities, and Telehealth
States may use RHTP funds for a broad menu of activities including expanding preventive, primary, maternal, and behavioral health services; recruiting and retaining clinical workforce; modernizing rural facilities, equipment, and cybersecurity; deploying telehealth infrastructure; establishing hub-and-spoke care networks; and testing value-based payment models.
CMS will host annual Rural Health Summits to share implementation lessons across states.
How Healthcare Organizations Can Access Funds
The awards flow to states, which then distribute funds to healthcare providers, community organizations, and local government entities through their Rural Health Transformation Plans. Individual hospitals, clinics, health systems, and nonprofits should engage their state health agencies to understand local distribution timelines and subgrant opportunities.
What grant seekers should do now: Rural healthcare providers and health-focused nonprofits should identify their state's lead agency for RHTP implementation and request information about subgrant opportunities. Check the CMS RHTP overview page for state-level contacts. In-depth analysis of state-by-state allocations and positioning strategies is available on the Granted blog.