Health Care

States angle for piece of $50B rural health fund

The Trump administration released the criteria for the program this month.
Maria Gomez drives through a colonia, a type of informal neighborhood found in parts of rural Texas, as part of her job as a “promotora,” or community health worker, for Holy Family Services, a birth center and women’s clinic in Hidalgo County, Texas, Tuesday, June 17, 2025. (AP Photo/Jacquelyn Martin)

With billions at stake and only weeks to act, states are scrambling to claim their share of a one-time federal grant designed to shore up rural health care systems strained by workforce shortages, limited access to care, and rising rates of chronic disease.

The Trump administration set off the rush on Sept. 15 when it released highly anticipated criteria for the Rural Health Transformation Program. The $50 billion program, established in July, is meant to offset the damage to rural areas expected from $911 billion in Medicaid cuts included in the sweeping One Big Beautiful Bill Act.

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