Health Care

Rural hospitals get lifeline from $50 billion fund

The Rural Health Transformation Program is funded through President Trump’s reconciliation bill, approved by Congress this summer.
Secretary of Health and Human Services Robert F. Kennedy Jr., appears before the Senate Finance Committee, on Capitol Hill in Washington, Thursday, Sept. 4, 2025. (AP Photo/Mark Schiefelbein)

The Trump administration on Monday announced that all 50 states will receive a portion of a new $50 billion Rural Health Transformation Fund, a one-time grant program billed by federal officials as the largest investment in rural health care in decades.

The awards are intended to help states stabilize rural hospitals, bolster the health care workforce and test new ways of coordinating care across rural communities, according to a Centers for Medicare & Medicaid Services press release. The funding will begin flowing in fiscal year 2026.

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