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Maine receives $190 million from federal rural health fund

On Monday, Maine was awarded $190 million as first-year funding from the Rural Health Transformation Program, the state said, part of a new federal effort to support rural health.
State officials say Maine faces a $5 billion Medicaid shortfall after Medicaid cuts start in 2027, and the state applied in November requesting $1 billion over five years.
In its application, Maine said it would use the funds for workforce development, technology improvements and telehealth expansion, with $193 million for uncompensated care and $5.9 million in transportation funding starting in 2026.
Hospitals and state leaders said the award provides welcome relief as a national think tank projects half of Maine's 24 rural hospitals risk closing in the near future, and Gov. Janet Mills said Monday it will fund new investments.
No immediate distribution details were released while Maine works with the U.S. Centers for Medicare and Medicaid Services, and the award stems from a $193 million initiative Sen. Susan Collins advocated, despite some Maine delegation members voting no.

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Minnesota receives $193 million from federal rural health program

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