The Rural Health Transformation Program (RHTP) represents the most significant federal investment in rural healthcare in decades: $50 billion to stabilize struggling hospitals, modernize care delivery and create long-term sustainability.
However, without the right data, networks and tools to act quickly, states risk leaving billions on the table while rural communities continue to lose access to care. With more rural hospitals closing, Medicaid budgets shrinking and the behavioral health crisis escalating, the time to act is now.
The RHTP is designed to fill these gaps, but only for states that can demonstrate measurable impact, efficiency and sustainable models of care.
Funding at a Glance
Total Funding: $50 billion over five years (FY 2026–2030)
Distribution Model:
- 50% split evenly among all states that apply and are approved
- 50% awarded competitively, based on application scoring criteria
Scoring Factors Include:
- Degree of ruralness and population need
- State policies that support rural healthcare access and equity
- Quality and ambition of proposed use of funds
Application Process:
- States must submit a single transformation plan to the Centers for Medicare & Medicaid Services (CMS)
- Plans must demonstrate statewide impact, not just regional or hospital-specific benefits
- Commitments include measurable outcomes, clear timelines, budget milestones and stakeholder engagement
