States to receive an average of $200M for rural healthcare

By HPN Staff

Beginning this year, all 50 states will receive an average of $200 million in grants through the Rural Health Transformation Program, a $50 billion initiative established under President Donald Trump’s Working Families Tax Cuts legislation. Grants will be available to expand the rural health care workforce through recruitment training, modernize medical facilities, equipment, security and technology, expand preventative, primary, behavioral, emergency and maternal health services, and introduce innovations such as telehealth, new partnerships and regional collaborations. 

In anticipation of funding, all states applied for grants. Under the Rural Health Transformation Program, the Centers for Medicare & Medicaid Services (CMS) will award $147 million to $281 million grants in the first year of the program. Through 2030, the administration will make $10 billion available to states each year. 

Why it matters

Rural health care systems and those they serve face different challenges than those located in urban and suburban environments. 

According to a 2025 study published in The American Journal of Medicine:

• Because rural residents are often geographically isolated, they have reduced access to hospitals, medical centers and medical specialists. Because of delays in diagnosis and difficulty accessing treatment, rural populations have higher mortality rates. Chronic conditions are often poorly managed. 
• It is difficult to keep small-town medical centers and hospitals fully staffed. Patients often experience longer waiting times. Providers are more likely to experience burnout. 
• Rural facilities often lack the most advanced diagnostic and treatment tools and specialty services. 
• In poor rural areas, individuals are more likely to suffer from diabetes, hypertension, obesity and other chronic ailments. They are less likely to be insured. While mental health issues are prevalent, individuals may be less likely to seek help because of isolation, stigma and a shortage of resources. Suicide and substance abuse rates are higher in rural areas than in urban areas. 
• Telemedicine is one of the innovative solutions that addresses some of the health care challenges posed by geographical isolation. Rural residents can access primary, mental health and specialty care through telehealth without having to travel. 
• Mobile health clinics, which bring providers and diagnostic and treatment tools to rural areas, are another innovative option. Mobile clinics can help rural patients better manage chronic conditions without having to travel far.  
• Financial incentives that help rural medical offices recruit, train and retain providers can help fill staffing shortages. 
• Health education and outreach to rural communities can reduce stigma and encourage residents to seek prevention and earlier care.  

The bigger picture 

Approximately 62 million (20%) of Americans live in rural locations, yet fewer than 10% of U.S. physicians practice in those areas, according to the National Rural Health Association. 

The association reports that 180 rural hospitals have closed or discontinued inpatient services since 2010. These communities have lost access to essential medical services and skilled employment opportunities. 

Rural residents must travel twice the distance compared to their urban counterparts to receive needed care. Today, most (80%) of rural Americans are medically underserved. 

Lack of access to basic dental care is also an issue for rural Americans.