All 50 States Apply for CMS’s $50 Billion Rural Health Transformation Program
The Centers of Medicare and Medicaid Services (CMS) confirmed that all 50 states have applied for the $50 billion Rural Health Transformation Program, which is an extensive initiative established under the Working Families Tax Cuts law ( Public Law 119-21). The program will be used to restore and modernize the rural health care systems in the country.
The application period, which is open between September 15 and November 5, 2025, advises states to suggest detailed plans to increase access, improve quality, and health outcomes in rural communities. Both proposals contain plans specific to enhancing infrastructure, expediting innovation, and promoting long-term sustainability.
HHS Secretary Robert F. Kennedy, Jr. said, “When every state steps up to strengthen rural health, it shows the true character of our nation.” “Seeing all 50 states come forward to reimagine the future of rural health is an extraordinary moment,” said CMS Administrator Dr. Mehmet Oz. “
The program is based on five strategic objectives that are to:
- Improve rural health outcomes.
- To have sustainable access to care.
- To enhance workforce capacity.
- To have more innovative care delivery models.
- To extend the use of technology in rural areas.
CMS will now review all submissions for completeness and eligibility. States meeting the baseline criteria will receive 50% of the total program funds. The remaining 50% will be allocated through a merit-based review conducted by federal and non-federal experts to ensure alignment with program objectives.
Award announcements are expected by December 31, 2025. Funding will be disbursed over five years beginning in fiscal year 2026, with CMS’s Office of Rural Health Transformation providing ongoing technical assistance throughout implementation.
Additional information is available at:
https://www.cms.gov/priorities/rural-health-transformation-rht-program/rural-health-transformation-rht-program
