The $50 billion Rural Health Transformation Program (RHT) is a landmark federal initiative launched in 2025 to reshape rural healthcare delivery across all 50 states. A five-year federal investment administered by CMS to; expand access to care in rural communities. modernize rural health infrastructure and technology, strengthen the rural health workforce, and support innovative, state-driven care models. The funding structure is $10 billion per year from FY 2026–2030. 50% to be allocated equally across states with approved applications, 50% awarded based on need. Needs include, rural population share, number and condition of rural facilities, and land mass and strategic proposals. States submitted one-time applications in 2025 outlining transformation plans. CMS announced awards in December 2025, with first-year grants ranging from $147M to $281M per state.
The 2026 Chartis Rural Health Snapshot reveals deepening instability, with 41% of rural hospitals operating at a loss and 417 facilities vulnerable to closure. Additionally over 300 hospitals have eliminated OB services and 450+ have cut chemotherapy. Medicaid reimbursements account for nearly 10% (or $3.9 million) in net revenue for the typical rural hospital.
Can this initiative turn these statistics around? Who will take on the challenges to not just spend the $50B but change the rural healthcare landscape?
News
WV health department appoints Jeffries, Prasad to lead Rural Health Transformation program
The West Virginia Department of Health has appointed Carrie Jeffries and Dr. Soumya Prasad to lead the state’s Rural Health Transformation program, the agency announced recently. The appointments of director and deputy director, respectively, mark a “significant milestone” in the implementation of the program, the agency said in a release.
Why a $193M injection for rural health care in Pa. isn’t easing closure worries
The outlook for rural hospitals in Pennsylvania remains grim as the state prepares to make the best of decreased federal investments and faces budgetary challenges that officials say make it impossible to absorb the cuts. Policy experts say the $50 billion, five-year Rural Health Transformation Program won’t offset deep Medicaid cuts approved in a sweeping federal budget package that slashed spending by roughly $1 trillion over the next decade and tightened eligibility requirements.
State of Delaware Opens Initial RFPS to Transform Rural Health Care
Governor Matt Meyer announced that Requests for Proposals (RFPs) are now open for four initiatives under Delaware’s plan to overhaul health care in every community. The RFPs are part of the federal government’s Rural Health Transformation Program, a multi-year effort to expand access to care, lower costs, and increase the medical workforce, particularly in rural Kent and Sussex counties.
NRHA Statement on Congress Passing Full Year FY 2026 Funding Bill
On Feb. 3, 2026, the House voted to pass a full-year funding package that includes the Labor, Health and Human Services (L-HHS) appropriations bill and rural health extenders. The Senate passed this package last Friday, which means that it now heads to the President’s desk for signature, ending the 3-day partial government shutdown. NRHA is pleased to see Congress’ strong support for rural health through increased funding for many of our core rural programs at the Federal Office of Rural Health Policy.
Alaska Embarks on $272 Million Rural Health Transformation
In an opinion piece, Jared Kosin, with over a decade of experience working in Alaska’s health care system, offers a vision for how the state can transform its rural health care system using $272 million in new funding. Kosin argues that the key to transformation is improving access to care, particularly for the small population that drives the majority of Medicaid spending due to chronic conditions. He highlights several initiatives across the state, from patient-centered medical homes to dental services at nursing homes, that could help increase access and improve health outcomes. Kosin also notes that Alaska is well-positioned for this change, with strong support from its U.S. Senators and a dedicated team at the state’s Department of Health.
TruBridge and The Health Management Academy Launch the Rural Health Collaborative
TruBridge, Inc., a provider of healthcare technology solutions for rural and community hospitals, and The Health Management Academy (THMA), an executive membership and peer-learning organization, announced the launch of the Rural Health Collaborative, a new initiative designed to support, modernize, and strengthen rural and community hospitals during a critical period for healthcare delivery.
Listening Spotlights
Rural Healthcare: A CEO’s Take on Advocacy, Tech and More
Host: Phil Sobol, Chief Commercial Officer at CereCore
Guest: Lynn Falcone, Chief Executive Officer, Cuero Regional Hospital
On this episode host Raj Sundar explores the intersection of rural health and culturally responsive care, highlighting how geography shapes healthcare experiences for the 65 million Americans living in rural areas. They dive into the transformative potential of the $50 billion Rural Health Transformation Fund, discussing how states are listening to diverse communities, including tribal populations, to design context-specific solutions.
Events
Rural Health Information Hub
When: Tuesday, February 17, 2026 3:00 pm ET
Register for this event.
LinkedIn: Rural Health Information Hub (RHIhub)
Looking Ahead: FY 2026 Federal Office of Rural Health Policy Preview Webinar – The Federal Office of Rural Health Policy (FORHP) invites stakeholders, partners, and rural health leaders to join the 2026 FORHP Preview Webinar. Participants will learn how FORHP is supporting innovative, locally driven solutions to improve access, quality, and sustainability of healthcare in rural communities. To assist communities in their planning efforts, the webinar will outline FORHP’s priorities, planned competitive community-based funding opportunities, resources, and opportunities for collaboration aimed at advancing rural health transformation.
Rural Health Access Conference
When: May 18-19, 2026
Where: Manchester Grand Hyatt San Diego, San Diego CA
Event Page
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Join NRHA and hundreds of rural health leaders from across the country in Southern California to help raise the standard for rural health with over 80 innovative, practical, and cost-saving sessions and much more. NRHA’s expanded and renamed Rural Health Access Conference, one of the only meetings in the nation to focus on under-represented populations in rural America, is May 18-19 in San Diego, ahead of NRHA’s 49th Annual Rural Health Conference. This conference is designed for those who are dedicated to bringing quality health care and health care services to underserved populations.
Rural Medical Education Conference
When: Tuesday, May 19, 2026 8:00am – 5:00pm
Where: Manchester Grand Hyatt San Diego, San Diego CA
Event Page
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NRHA’s 23rd Rural Medical Education Conference is May 19 ahead of NRHA’s 49th Annual Rural Health Conference in San Diego. Join them for a premier NRHA event built by the association’s Rural Medical Education Workgroup for educators and students across the rural landscape.
Rural Hospital Innovation Summit
When: May 19-22, 2026
Where: Manchester Grand Hyatt San Diego, San Diego CA
Event Page
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Join NRHA and hundreds of rural health leaders from across the country in Southern California to help raise the standard for rural health with over 80 innovative, practical, and cost-saving sessions and much more. The nation’s largest gathering of rural health professionals occurs alongside the Summit, where rural hospital professionals find the next level of inspiration and take winning strategies home.
These events are created for anyone with an interest in rural health care, including rural health practitioners, hospital administrators, clinic directors and lay health workers, social workers, state and federal health employees, academics, community members and more.
Resources
The Rural Health Transformation (RHT) Program was authorized by the One Big Beautiful Bill Act (Section 71401 of Public Law 119-21) and empowers states to strengthen rural communities across America by improving healthcare access, quality, and outcomes by transforming the healthcare delivery ecosystem. Through innovative system-wide change, the RHT Program invests in the rural healthcare delivery ecosystem for future generations.
The National Rural Health Association (NRHA) is a national nonprofit membership organization that brings together thousands of members across the United States.
The association’s mission is to provide leadership on rural health issues through advocacy, communications, education and research.
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