CMS Announces State Awards for First $10B of Rural Health Transformation Program
The Centers for Medicare & Medicaid Services (CMS) has announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion, 5-year initiative included in H.R. 1. $10 billion is available for distribution each year, with half evenly distributed to states with approved plans, and the other half awarded “based on individual state metrics and applications that reflect the greatest potential for and scale of impact on the health of rural communities.” In 2026, states will receive first-year awards from CMS averaging $200 million within a range of $147 million to $281 million. CMS also announced the establishment of the Office of Rural Health Transformation (ORHT) within the Center for Medicaid and CHIP Services (CMCS) to oversee the program. Lead by Director Alina Czekai, the ORHT will guide states in implementing their rural health transformation plans, provide technical assistance, and coordinate federal and state partnerships for the duration of the program, which will run through September 30, 2031. Each state will have a dedicated CMS project officer, and the states will also convene annually at the CMS Rural Health Summit.
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