Service Area Competition HRSA-26-005

The Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services, is administering the FY 2026 Service Area Competition (SAC) under the Health Center Program. This funding opportunity is administered by HRSA’s Bureau of Primary Health Care. The SAC program aims to improve the health of underserved communities by supporting organizations that deliver comprehensive, high-quality primary health care services in designated service areas across the United States and its territories. This opportunity is officially listed under opportunity number HRSA-26-005. The SAC provides federal funding to nonprofit organizations, public agencies, tribal organizations, and other eligible entities to establish or maintain health centers in designated service areas listed in the Service Area Announcement Table (SAAT). Applicants may apply as a Competing Continuation (for current grantees), Competing Supplement (for current grantees proposing new full-time sites in additional service areas), or New (for entities not currently funded under the Health Center Program). To be eligible, applicants must serve at least 75% of the patient target defined in the SAAT and provide all required service types including medical, dental, mental health, substance use disorder, vision, and enabling services as applicable to their proposed area. Applicants must submit Phase 1 materials via Grants.gov by October 10, 2025, and Phase 2 materials via HRSA’s Electronic Handbooks (EHBs) by November 10, 2025. Awards are expected to be announced by April 1, 2026, with a start date of May 1, 2026. The period of performance may be one year or four years, depending on the project type and awardee status. The total anticipated funding available through this NOFO is approximately $171,000,000, with 51 expected awards. Funding levels are determined per service area and may differ across applicants. All services must be provided on a sliding fee scale regardless of patients' ability to pay. The application process is detailed and includes requirements such as a project narrative, budget forms, service area maps, bylaws, co-applicant agreements (if applicable), and documentation of compliance with Health Center Program standards. All applications must demonstrate a clear strategy for providing access to care, engaging underserved populations, collaborating with community providers, and ensuring governance and financial accountability. Applicants are also expected to address continuity of care, disaster response, patient-centered models, and integration with other federal and local health efforts. The program does not support construction, vehicle purchases (except for mobile units), or activities not directly related to health center operations. It also prohibits the use of federal funds for abortions except under specific, legally permitted conditions. Indirect costs are allowed only with an approved rate or a de minimis rate of 15%. Program income generated through operations must be reinvested into approved project-related activities and must align with the Health Center Program’s scope and goals. Contacts for this opportunity include Ashley Vigil and Julia Tillman for program questions, available through the BPHC Contact Form or by phone at 301-594-4300. For financial and budget-related questions, applicants should contact Grants Management Specialist Joi Grymes-Johnson at jgrymes@hrsa.gov or 301-443-2632. Detailed guidance, application templates, and a pre-recorded technical assistance webinar are available on the SAC TA webpage. Compliance expectations and post-award requirements are strictly monitored through site visits, reporting requirements, and performance reviews.

Begin registrations early. Use sample templates from SAC TA site. Ensure service maps and patient projections align with SAAT.