Service Area Competition

The Health Resources and Services Administration (HRSA), through its Bureau of Primary Health Care, has released the FY 2026 Health Center Program Service Area Competition (SAC) under opportunity number HRSA-26-002. This grant program is part of HRSA’s commitment to improving the health of underserved communities by supporting organizations that provide comprehensive, high-quality primary health care. The program’s statutory authority is established under Section 330 of the Public Health Service (PHS) Act (42 U.S.C. 254b), and it aligns with national public health goals, including the President’s Make America Healthy Again (MAHA) priorities. The purpose of the SAC funding is to maintain and enhance primary health services in designated service areas currently supported under the Health Center Program. Eligible applicants must propose to serve specific service areas as listed in the Service Area Announcement Table (SAAT). These include areas whose current award recipients' periods of performance are ending in FY 2026. Applicants must deliver services such as medical, dental, mental health, substance use disorder, vision, and enabling services. Funding can be requested for one or four 12-month budget periods, and applicants must propose to serve at least 75% of the patient target listed in the SAAT for the designated service area. HRSA anticipates issuing approximately 93 grants with an expected total available funding of $232 million. Each award is subject to availability of appropriated funds and must follow strict guidelines for use, including prohibitions on construction, facility purchases, and non-certified health IT. Eligible applicants include public and private nonprofit organizations, including state, county, city, township, and special district governments, tribal governments, and certain public health entities. Individuals and for-profit entities are not eligible. New applicants must provide documentation such as nonprofit status and Articles of Incorporation. The application also mandates the delivery of all required primary health care services, compliance with sliding fee discounts, and the establishment of at least one full-time service delivery site. Specific requirements also exist for applicants targeting special medically underserved populations, such as migratory and seasonal agricultural workers, homeless populations, and residents of public housing. The SAC program operates under a two-phase application process. Phase 1 applications must be submitted through Grants.gov by 11:59 p.m. ET on Monday, September 22, 2025. Phase 2 supplemental information is due via HRSA’s Electronic Handbooks (EHBs) by 5:00 p.m. ET on October 22, 2025. Applications must be complete and include required documents like the Project Narrative, Budget Narrative, Form 5A (Services Provided), Form 5B (Service Sites), and Attachment 12 (Operational Plan) for new or competing supplement applicants. HRSA outlines a 120-page limit for the application, with formatting and component-specific guidance provided through a technical assistance webpage. Applications will undergo a multi-criteria merit review process assessing need, response, collaboration, capacity, impact, governance, and budget support. Each criterion carries a weighted point value, with a total possible score of 100 points. HRSA may assign priority points for applicants with a positive or neutral three-year patient trend and those maintaining Patient-Centered Medical Home (PCMH) recognition. Applicants receiving a one-year period of performance must submit a Compliance Achievement Plan within 120 days or risk award termination. Award notifications are expected by February 1, 2026, with a project start date of March 1, 2026. HRSA contact points include Ashley Vigil and Julia Tillman (program-related inquiries) and Joi Grymes-Johnson (financial and grants management). All applicants are encouraged to access pre-application resources, including webinars and TA guides, provided on the Apply for Service Area Competition (SAC) TA webpage.

Use the SAC TA webpage and attend the pre-application webinar.