What Is the Rural Health Transformation Fund?
The Rural Health Transformation Fund is a $50 billion federal fund established to offset a portion of the federal funding cuts to rural hospitals, clinics, and other providers.
Key things to know about the fund:
- H.R.1—the so-called One Big Beautiful Bill Act—significantly reduces federal healthcare spending, with rural Medicaid spending expected to drop by $137 billion over the next decade.
- Congress established the Rural Health Transformation Fund to offset a portion of the federal funding cuts.
- Government decisions about the fund are expected soon and will shape the future of rural healthcare in every state.
- Each year, $5 billion will be split equally among states that apply—and are approved for—funding by the Centers for Medicare and Medicaid Services (CMS).
- All 50 states submitted applications for funding for 2026, and CMS will announce awarded funding by Dec. 31, 2025.
- Policy experts and rural stakeholders have raised significant concerns that the fund does not do enough to offset Medicaid cuts and support rural communities long-term.