Rural Initiatives: Rural Health Transformation Program

The One Big Beautiful Bill Act established a $50 billion Rural Health Transformation Program to strengthen care delivery and sustainability in rural communities. All states are eligible to apply for a share of this funding, with projections indicating a minimum award of $100 million annually per state over a five-year period (2026–2030).

On September 15, the Centers for Medicare & Medicaid Services (CMS) released the Rural Health Transformation Program funding opportunity on grants.gov, with applications due by November 5. While applications must be submitted by states, this initiative is designed to directly benefit rural healthcare facilities, making it important for our members to be informed and engaged.

The program’s framework focuses on addressing critical rural healthcare challenges and will advance the following strategic goals:

• Improving health outcomes in rural America
• Ensuring sustainable access to care
• Strengthening workforce development
• Expanding innovative care models
• Leveraging technology and innovation

Rural healthcare facilities will play a key role in shaping the success of this initiative. Member input will help ensure that local needs are reflected in the state’s proposal and that rural communities remain at the center of transformation efforts. We encourage all members to stay engaged and participate in upcoming discussions that will guide this important work.

The state of South Dakota has announced a few Community Conversations, providing opportunities for the public to provide their insights.