The Centers for Medicare & Medicaid Services (CMS) announced that all 50 states have applied for the new $50 billion Rural Health Transformation Program, a landmark initiative to improve access, quality, and sustainability of care in rural communities across the U.S.
Created under the Working Families Tax Cuts legislation (Public Law 119-21), the program empowers states to design and implement customized plans that address local health challenges and expand care access for rural populations.
The Rural Health Transformation Program is a catalytic investment to strengthen rural health infrastructure and build enduring systems of care. Guided by five strategic goals, the program aims to:
- Make rural America healthy again: Support rural health innovations and promote preventive care.
- Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability.
- Workforce development: Build and retain a strong rural health care workforce.
- Innovative care: Test new models of care delivery to improve outcomes and reduce costs.
- Tech innovation: Expand technologies that enhance access and efficiency in rural settings.
Approved states will receive baseline funding beginning in fiscal year 2026, with final awards to be announced by December 31, 2025. CMS will also provide technical assistance to help states implement and sustain their initiatives over time.
This effort represents one of the largest federal investments in rural health in U.S. history, aiming to deliver equitable, long-term improvements for rural patients and providers alike.
Resource: All 50 States Seek to Transform Rural Health with CMS