CMS Announces $50 Billion Rural Health Transformation Program

September 16, 2025 | Washington, D.C. - The Centers for Medicare and Medicaid Services (CMS) announced today the introduction of the Rural Health Transformation Program, a historic program designed as a result of the Working Families Tax Cuts Act, which will cost $50 billion. The program is supposed to enhance health care delivery to rural America by increasing access, enhancing quality of care, and establishing sustainability in the long term.

U.S. Health and Human Services Secretary Robert F. Kennedy, Jr., called the effort the largest investment in enhancing health care among rural Americans, stating that it concentrated on delivering dignity and reliable care. Dr. Mehmet Oz, the Administrator of CMS, referred to the program as a historic investment, which would not just create a systemic change but also enhance results across generations.

The program welcomes all 50 states to apply for the funding to develop state-based solutions to the rural health issues. There will be five strategic goals that will be funded:

• Enhancing prevention and health in the rural setting by creating new access points and innovations.
• Sustainable access through providing efficiency and provider viability.
• Employee development to attract and keep qualified health practitioners.
• Better outcomes and coordinated care model innovations.
• The use of technology to increase the use of digital tools and protect effective care provision.

The funding will be issued in five years, starting in FY 2026, whereby it will allocate 10 billion for each year. Half will be allocated equally to states with approved applications, with the remaining half released to those with the greatest potential impact.

The application deadline is November 5, 2025, and the award will be announced by December 31, 2025. CMS will offer continuous monitoring to make sure that it is implemented successfully.

States can visit the CMS site at: CMS Rural Health Transformation Program to find information and materials on the application.