Rural Health Transformation Program

The Rural Health Transformation Program is administered by the U.S. Department of Health and Human Services through the Centers for Medicare & Medicaid Services. This forecasted opportunity is designed to support state governments in strengthening healthcare delivery systems in rural communities across the United States. With a planned launch in fiscal year 2026, the program seeks to help rural America improve access to healthcare, enhance quality of care, and achieve sustainable health outcomes. The program builds on CMS’s broader mission of ensuring effective, equitable healthcare delivery, and this specific initiative emphasizes transformation in underserved rural areas. The program will fund efforts to expand healthcare access points, reduce health disparities, and promote preventative care. Projects are expected to focus on areas such as chronic disease management, behavioral health, and prenatal care, using evidence-based and outcomes-driven approaches. States will play a central role in coordinating healthcare transformation in rural communities by encouraging partnerships among rural facilities, regional systems, and other stakeholders to share operations, technology, and services. This cooperative model emphasizes sustainability, efficiency, and long-term viability of rural healthcare providers. Another major component of the Rural Health Transformation Program is workforce development. Recognizing the shortage of qualified healthcare professionals in rural areas, the program encourages initiatives that attract, train, and retain skilled providers. Efforts may include expanding the use of community health workers, pharmacists, and patient navigators, as well as supporting rural providers in practicing at the top of their licensure. These workforce investments aim to create a more resilient healthcare system tailored to the specific needs of rural populations. The program also places strong emphasis on innovation in care delivery. Applicants are expected to develop and test innovative care models that improve coordination and flexibility of care while lowering costs. Proposals may also include new payment mechanisms, particularly those that incentivize providers and Accountable Care Organizations to achieve measurable cost savings and quality improvements. This reflects CMS’s strategic push toward value-based care in rural America. Technology and digital health integration are also core priorities. Funded projects may focus on improving data sharing, advancing cybersecurity, and providing access to remote and telehealth services. The program seeks to foster the adoption of emerging technologies that expand access to digital health tools for rural patients and providers alike, helping bridge the digital divide that continues to affect rural health delivery. This is a forecasted funding opportunity, with an estimated post date of September 5, 2025, and an estimated application due date of November 5, 2025. Awards are anticipated to be announced by December 31, 2025, with projects beginning the same day. Approximately 50 awards are expected, supported by a projected total program funding of $50 billion. The award ceiling and floor amounts are not specified in the current forecast and require further clarification. Eligibility is limited to state governments, which will serve as the primary applicants responsible for deploying funds to transform rural health systems. Applications will be submitted through Grants.gov, and additional details are expected when the full Notice of Funding Opportunity is released. Contact for questions is available via MAHARural@cms.hhs.gov.