Service Area Competition - Additional Area 1

The Service Area Competition (SAC) opportunity under the Health Center Program, issued by the U.S. Department of Health and Human Services through the Health Resources and Services Administration (HRSA), is designed to support the delivery of comprehensive, high-quality primary health care services to underserved populations in the United States and its territories. The Health Center Program is authorized by Section 330 of the Public Health Service Act and aims to reduce health disparities and improve health outcomes through a national network of community-based health centers. These centers provide care regardless of patients' ability to pay and operate on a sliding fee scale to increase affordability. This Notice of Funding Opportunity (NOFO), HRSA-26-007, opens a competitive cycle for organizations to apply for Health Center Program funding to serve defined geographic service areas listed in the Service Area Announcement Table (SAAT). The competition includes provisions for new applicants, competing continuation, and competing supplement applicants. The primary goal is to ensure continuity and access to essential services in communities currently served by awardees whose periods of performance are expiring. Service areas may include required service types such as medical, dental, mental health, substance use disorder, vision, and enabling services, as specified per area in the SAAT. The total expected funding for this competition is $3,065,500, with two anticipated grant awards. Funding is contingent on future appropriations and may be adjusted by HRSA based on available funds and service needs. Awards will span either a one-year or four-year budget period beginning August 1, 2026. Multi-year awards are capped so that funding for subsequent years cannot exceed the amount requested in year one. Grantees must propose to serve at least 75% of the patient target defined in the SAAT, with reductions in funding applied if lower patient coverage is proposed. Funding cannot be used for certain restricted costs, including construction, land or vehicle purchases (except mobile units), and non-certified EHR systems. Eligible applicants include public or nonprofit private entities located in the United States or its territories. This includes tribal and urban Indian organizations. Entities may apply as new applicants, competing continuations, or competing supplements depending on their current funding status. To be eligible, applicants must demonstrate the capacity to directly provide, or arrange through contracts or formal referral agreements, a full range of required primary care services. They must maintain control over key management staff and board governance, and ensure services are available to all residents in the proposed service area, not just sub-populations. The SAC application process consists of two phases. Phase 1 requires submission through Grants.gov by March 16, 2026, at 11:59 p.m. ET. Phase 2 supplemental information must be submitted through the HRSA Electronic Handbooks (EHBs) by April 13, 2026, at 5:00 p.m. ET. Required documents include a project narrative, budget, service area map, organizational chart, staffing profiles, co-applicant agreements (if applicable), and a sliding fee discount schedule. New applicants must also submit evidence of nonprofit/public status and an operational plan. Applications will be reviewed using a merit-based system totaling 100 points, with categories such as Need, Response, Collaboration, Capacity, Impact, Governance, and Budget Support. Additional priority points are available for applicants with positive patient trends or PCMH recognition. HRSA may adjust periods of performance based on compliance history. Notices of Award are expected to be issued by August 1, 2026, with post-award requirements including reporting on Uniform Data System (UDS) metrics and federal financial compliance.

Ensure patient projections meet SAAT targets; avoid incomplete service scope; maintain board governance independence.