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Trump, Advisers Tout Investments in Rural Health Care

The Trump administration allocated $10 billion to support rural hospitals facing financial and staffing challenges, with awards distributed across all 50 states to improve care access and innovation.

  • The administration unveiled the first $10 billion installment of rural health awards from the $50 billion rural health fund on Friday, across all 50 states.
  • Rural hospitals have long struggled with staffing shortages, thin margins, and declining volumes, pressures linked to Republican-led Medicaid cuts that forced nearly 190 closures and half operating at a loss.
  • The program divides funding 50/50 between equal and competitive pools, with 2026 awards ranging from $147 million to $281 million, and states highlighting innovations like drones and robots.
  • Policy experts say the fund could stabilize strained providers, but advocates warn of waste and fraud risks while the Centers for Medicare and Medicaid Services pledges audits and annual reassessments.
  • The fund sits amid broader fiscal changes, with the $50 billion being far smaller than the $911 billion in federal Medicaid cuts projected by the CBO, and bipartisan interest remains high, as every Democratic governor applied for it.
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The Washington Post broke the news in on Friday, January 16, 2026.
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