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CMS announces state distribution of funds for second year of Rural Health Transformation Program

News originally published by

American Hospital Association

November 10, 2026, 10:54 GMT

The Centers for Medicare & Medicaid Services Nov. 9 announced allocations for the second year of the Rural Health Transformation Program, which will award $10 billion annually to all states from fiscal year 2026 through FY 2030. The program helps rural hospitals fund projects to expand access to care, bolster the rural workforce, modernize facilities and technology, and support innovative payment and care delivery models. Fifty percent of the funding is distributed equally among all states, while the additional 50% is allocated based on rural health needs and proposed impact.

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