States to receive billions under new program for strengthening rural health

Rural healthcare is getting a $50 billion boost around the country, the Trump administration announced Monday.

The Center for Medicare & Medicaid Services will establish the Office of Rural Health Transformation to oversee a grant program to “strengthen rural health systems and expand sustainable access to care nationwide,” according to a post on X.

“The Rural Health Transformation Program represents a generational investment in the health and vitality of rural America,” CMS Administrator Dr. Mehmet Oz said in a press release. “By formally establishing the Office of Rural Health Transformation, CMS is reinforcing its commitment to strong leadership, accountability, and partnership as states prepare to turn this investment into lasting improvements for rural communities.”

The funding represents the largest federal investment in rural health care in history, the White House said. The initiative will “strengthen and modernize health care in rural communities across the country,” Oz said in his own post on X.

Over the next five years, states will receive alterable, calculated grants, depending on each state’s innovation and success for strengthening rural health care, Oz said in an explanatory video.

“America loves a competition,” he said. “So, to continue, for five years, our hope is that we all get healthier in America and no longer will allow ZIP Code dictate our life expectancy.”

He explained how physicians and health staff might propose various solutions for rural health such as drone delivery of medications. The program would encourage medical staff and hospitals to implement these solutions and innovate new ones to do “better than the year before.”

“And for the folks who do a great job, they’re going to give it more money; and the folks who don’t deliver what they promised, they might get some money taken away from them to give to the guys who are doing a great job,” Oz said.

This year, grants ranged from about $147 million to $281 million, with Texas receiving the largest amount, according to the White House press release. The funding will end in September of 2031. 

“I am honored to lead the Office of Rural Health Transformation at such a pivotal moment for rural health care,” RHT Director Alina Czekai said in a statement. “Having completed a rigorous review of state applications, our team is prepared to partner with states on the transformational work ahead – advancing innovative care models, modernizing rural health infrastructure, and strengthening systems that will endure well beyond the life of the program.” 

The program will guide states in technical assistance and federal and state partnerships to ensure accountability and flourishing, according to the CMS statement. 

“Healthy communities start with access to reliable care, no matter where you live,” Health and Human Services Secretary Robert F. Kennedy Jr. said in the statement. “By establishing the Office of Rural Health Transformation, we are making sure this historic investment delivers real results for rural families and strengthens health systems for the long term.”