All 50 States Receive Large Chunks Of $50B Rural Health Fund, With Caveats
Texas received the most ($2.8 million for fiscal year 2026), while New Jersey received the least ($1.5 million for 2026). Even so, the funds can be clawed back if states don't implement changes according to Trump administration priorities. And some states, such as Vermont, worry that the funds won't make up for what they're losing in Medicaid funding cuts from the Big Beautiful Bill.
Fierce Healthcare:
Rural Health Transformation Program Awards Announced—Here's Who's Getting The Most In FY2026
Texas and Alaska will receive the largest amount of funding from the $50 billion Rural Health Transformation Program in fiscal year 2026, while New Jersey and Connecticut will see the least, the Centers for Medicare & Medicaid Services (CMS) announced last Monday. (Muoio, 12/29)
CMS.gov:
How Much Each State Received For Rural Health Care
See the complete list of 50 states. (12/29)
Talking Points Memo:
Rural Health Fund Awarded To All 50 States, But Trump Admin Can Still ‘Claw Back’ Cash
Since the funding will be recalculated annually over the life of the five-year program, CMS Administrator Mehmet Oz reportedly said in a call with reporters that the administration could “claw back” funds if a state doesn’t enact policies it committed to in its application. Searing suggested that was a possibility in November, telling TPM that CMS “can do pretty much what they want and the states can’t complain about it.” (Jones, 1/3)
WCAX:
Will Vermont's $195M Rural Health Care Investment Offset Medicaid Cuts?
While many are cheering Monday's funding announcement, other health organizations are worried about simultaneous federal Medicaid cuts. (Cutler, 12/30)
