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Iowa Gets $209M Federal Grant to Expand, Improve Rural ...

The $209 million award is part of a $50 billion federal effort to improve rural health care with funding distributed annually from 2026 to 2030, officials said.

  • Tuesday, the Centers for Medicare & Medicaid Services announced Iowa will receive $209,040,064 as part of the $50 billion Rural Health Transformation Program.
  • The program was established under the Working Family Tax Cuts law signed by President Donald Trump and will distribute $10 billion annually from 2026 through 2030, with half divided equally among participating states.
  • Iowa submitted its Healthy Hometowns application in November and will invest in telehealth, mobile sites, hub‑and‑spoke networks, residency positions, and cancer prevention measures.
  • Payments are set to begin in 2026, and all 50 states were approved with awards varying from $281 million for Texas to $147 million for New Jersey; Iowa's $209 million is one of its largest rural health investments.
  • Federal officials say the investment will expand rural access, modernize facilities and support innovative care models, while KFF notes it offsets an estimated $137 billion rural Medicaid decline and puts local hospitals and clinics in control.
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Mix 107.3 KIOW broke the news in on Monday, December 29, 2025.
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