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Applications for ‘big beautiful’ rural health fund open for states

States can apply for $50 billion over five years to innovate rural healthcare and address financial losses affecting 48% of rural hospitals, officials announced.

  • The White House announced on Monday that states can now apply for the $50 billion Rural Health Transformation Fund over five years.
  • This fund was created amid Medicaid cuts signed into law in July, which risk reducing $137 billion in rural health spending, leaving rural hospitals financially vulnerable.
  • States must submit applications by November 5 to compete for annual awards of $10 billion, allocated partly equally and partly by CMS’s discretionary evaluation of rural needs.
  • NRHA CEO Alan Morgan warned many rural hospitals face closure before improvements occur, while Louisiana’s Rural Hospital Coalition director Jeff Reynolds called the fund a unique federal investment.
  • The program aims to improve long-term rural health care access, infrastructure, and innovation, though concerns remain about whether it can offset Medicaid cuts and sustain rural hospitals.
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The Trump Administration opened the process for states to submit a detailed request for the first installment of the five-year fund created to help rural providers compensate for the cuts to Medicaid and other health programs contained in the President’s One Big Beautiful Bill. Read more]]>

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The Hill broke the news in Washington, United States on Monday, September 15, 2025.
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