Breaking News: CMS Launches $50B Rural Health Investment
The Centers for Medicare & Medicaid Services (CMS) has announced a historic $50 billion investment to strengthen and modernize rural healthcare systems across all 50 states through the new Rural Health Transformation Program. Beginning in 2026, states will receive first-year awards averaging $200 million, with funding continuing through 2030.
This initiative is designed to address long-standing challenges in rural healthcare by expanding access to care, strengthening the clinical workforce, modernizing facilities and technology, and supporting innovative care and payment models that keep services 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., noting that this investment places local hospitals, clinics, and health professionals in control of how care is delivered in their communities.
CMS Administrator Dr. Mehmet Oz emphasized that the program reflects a nationwide commitment to state-driven strategies that expand rural access, strengthen workforces, modernize care delivery, and support the communities that sustain the healthcare system.
States will use this funding to:
Expand preventive, primary, maternal, behavioral, and emergency care access
Strengthen recruitment, training, and retention of the rural healthcare workforce
Modernize rural facilities, technology infrastructure, and cybersecurity
Expand telehealth, remote patient monitoring, and digital care tools
Improve coordination through regional networks, data sharing, and hub-and-spoke models
Test innovative and value-based care and payment models
Funding will be distributed over five years, with $10 billion allocated annually from 2026 through 2030. Half of the funding is distributed evenly across all approved states, while the remaining funds are allocated based on rurality, system needs, policy initiatives, and the potential for measurable impact.
From an operational and financial perspective, this program signals increased focus on infrastructure readiness, data integrity, care coordination, and accountability. As states move from planning to execution, strong reporting, documentation, and financial visibility will play a critical role in supporting long-term success.
CMS will partner closely with each state throughout implementation, providing technical guidance, oversight, and annual collaboration through the CMS Rural Health Summit beginning in 2026.
Source:
Centers for Medicare & Medicaid Services (CMS) – Rural Health Transformation Program: https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states