The Centers for Medicare & Medicaid Services (CMS) has launched a $50 billion Initiative to Help Strengthen and Modernize Healthcare Services and Infrastructure in Rural areas across all 50 States in America, starting in 2026.
According to the Official Press Rrelease, the Initiative will directly impact over 60 million People living in Rural Parts of America, and aims to Transform Rural Health Infrastructure, expand Healthcare Workforces and Modernize Care Delivery across all 50 States.
The CMS announced the Launch of the Rural Health Transformation Program (RHTP) on December 29th, 2025. The New Initiative will Award every State in the U.S. Funding to Help Strengthen Healthcare in Rural Communities. According to the Press Release, States will receive First-Year Funding Awards Ranging from $147 million to $281 million, averaging about $200 million per State.
The RHTP plans to Allocate $10 billion per year over Five years, with 50% divided Equally among All States and the Remainder Distributed based on Factors like Rural need, State Policy Initiatives, and the Merit of Applications.
States will be able to use these Funds to: Expand Access to Preventive, Primary Maternal, and Behavioral Health Services. Strengthen Rural Clinical and Emergency Workforces through Retention, Recruitment, Residency, and Training Initiatives. Modernize Infrastructure with Investments in Telehealth, Remote Monitoring, AI-Assisted Clinical Tools, Facilities, Equipment, andCcybersecurity, Develop and Test New Care Models, and Build Partnerships to Improve Patient Outcomes. In addition to the Rural Funding Initiative, the CMS also announced the Office of Rural Health Transformation (ORHT) within the CMCS.
OHRT will be responsible for Guiding the Implementation of the Program, providing States with Technical Assistance, and Ensuring Robust Oversight and Accountability throughout the Five-year Rollout, which is set to Run until September 2031.
In the CMS Announcement, the Health and Human Services (HHS) Secretary, Robert F. Kennedy, Jr. (I), said: “More than 60 million Americans living in rural areas have the right to equal access to quality care.”
CMS Administrator Dr. Mehmet Oz *R) also said in the Press Release: “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.”
The Deputy Administrator and Director of the Center for Medicaid and CHIP Services, Dan Brillman, said: “The Office of Rural Health Transformation reflects CMS’s commitment to ensuring rural communities across America have consistent access to high-quality, dependable care.”
The Principal Deputy Director of the Center for Medicaid and CHIP Services (CMCS), Caprice Knapp (R), said: “The Office of Rural Health Transformation will help ensure states have the tools, strategic guidance, and strong program stewardship necessary to improve outcomes for the communities they serve.”
The CMS has revealed states that will work with Dedicated CMS Project Officers to Plan and Execute their Rural Health Strategies. Progress will be Monitored through Mandatory Regular Updates to ensure Accountability, and Successful Models and Lessons Learned will be Shared at the Annual CMS Rural Health Summit, held during the CMS Quality Conference.
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