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The Centers for Medicare and Medicaid Services on Monday announced the launch of a $50 billion federal program aimed at expanding healthcare access in rural communities, part of the One Big Beautiful Bill Act signed into law in July.
The Rural Health Transformation Program will distribute funding to all 50 states beginning in 2026, with initial awards ranging from $147 million to $281 million. The money is intended to improve preventive, primary, maternal and behavioral health services; strengthen rural medical workforces; and modernize healthcare technology across underserved areas.
“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Health and Human Services Secretary Robert F. Kennedy Jr. said in a statement. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ healthcare.”
Kennedy credited President Donald Trump for prioritizing rural healthcare as part of the administration’s broader healthcare reforms. “Thanks to President Trump’s leadership, rural Americans will now have affordable healthcare close to home, free from bureaucratic obstacles,” he said.
“Today marks an extraordinary milestone for rural health in America,” said CMS Administrator Dr. Mehmet Oz alongside Kennedy in a statement.
“Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running. CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families,” he added.
Texas will receive the largest allocation at $281 million, while New Jersey will receive the smallest at $147 million. California and Montana are set to receive $233 million each. Under the plan, CMS will release $10 billion per year from 2026 through 2030 to fund state-approved rural health initiatives.
Officials said the investment aims to close long-standing disparities between urban and rural healthcare systems by updating facilities, retaining medical professionals and ensuring patients have access to care without having to travel long distances.