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Trump Admin Launches $50 Billion Rural Health Transformation Program

The $50 billion Rural Health Transformation Program aims to prevent rural hospital closures and expand services with an average $200 million awarded per state, officials said.

  • On Monday the Trump administration announced the first-round rollout of a $50 billion Rural Health Transformation Program, distributing 2026 first-year awards averaging $200 million to all 50 states.
  • The One Big Beautiful Bill included $10 billion annually for five years amid concerns from lawmakers, including moderate Republicans, that Medicaid cuts could force hospital closures and leave millions uninsured.
  • Each year, the program divides $5 billion equally among states and another $5 billion using a CMS formula that includes rural population and health outcomes, with about 20% tied to states' applications and policy commitments.
  • Texas will receive the largest first-year award of more than $281.3 million, and states say they will use awards to keep hospitals open, expand telehealth, and recruit staff.
  • Critics say the $50 billion will not offset the nearly $1 trillion in Medicaid cuts, with U.S. Health and Human Services Secretary Robert F. Kennedy Jr. stating, `'This historic investment puts local hospitals, clinics and health workers in control of their communities'`.
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The Trump administration announced the launch of the $50 billion Rural Health Transformation Program (RHT). The bill was included in the 'Big Beautiful Bill', now also called the Workers' Families Tax Cuts Act, signed by President Donald Trump on July 4. The White House highlighted the RHT as an "unprecedented" launch. Read more]]>

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From drones to telehealth: How your state plans to use millions in rural health funding

The Trump administration has announced the first round of rural health care awards from a $50 billion fund, with half of the funds distributed at the administration's discretion based on ruralness, state performance and policy commitments.

·Portland, United States
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Bloomberg broke the news in United States on Monday, December 29, 2025.
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