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Gov. Little establishes task force to secure $1B federal funding for rural health

The $50 billion program aims to stabilize rural hospitals and healthcare providers but offsets only 37% of federal Medicaid cuts, with funding spread over five years.

  • On September 15, Centers for Medicare and Medicaid Services released a Notice of Funding Opportunity for the $50 billion Rural Health Transformation Program, with half the funds distributed equally and half based on CMS factors.
  • Faced with sweeping Medicaid cuts, lawmakers set aside $50 billion intended to blunt the impact on rural care, but CMS said it will offset only a little over one-third of the estimated $137 billion in permanent rural Medicaid cuts.
  • Wyoming applied for up to $1000 million with four initiatives after hosting eight in-person and three virtual meetings, as Wyoming Department of Health reported.
  • Arkansas submitted its application Friday seeking $1 billion from the Rural Health Transformation Program, with CMS expected to announce winners by Dec. 31 and start monitoring in 2026.
  • Critics warn the rollout risks favoritism and opaque decisionmaking, noting 338 vulnerable hospitals and that 81% of rural communities lack psychiatric nurse practitioners while 65% lack psychiatrists.
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KIFI broke the news in Idaho Falls, United States on Monday, November 3, 2025.
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