Republicans earlier this week applauded action by the Centers for Medicare & Medicaid Services (CMS) to provide awards to all 50 states under the Rural Health Transformation Program, a $50-billion initiative established under the One Big Beautiful Bill.
“Today, I am proud to announce the CMS awarded Texas the highest allocation of any state under this program, directing landmark investments to strengthen rural hospitals, expand access to care for our cowboys and plowboys, and secure a healthier future for the next generation of Texans,” U.S. Rep. Jody Arrington (R-TX) said on Dec. 30, 2025.
“This is a major win for our region, our great state, and the heartland of America — ensuring our rural communities remain healthy, strong, and thriving for years to come,” said the congressman from Texas, who authored and passed the legislation creating the program. Texas will receive upwards of $281 million in funding for fiscal year 2026.
During FY 2026, all states will receive first-year awards from CMS averaging $200 million within a range of $147 million to $281 million to help them expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home, according to the agency.
The Rural Health Transformation Program’s $50 billion in funds will be allocated to approved states over five years, with $10 billion available each year from 2026 through 2030.
“I’m thrilled to see this funding being given to rural health care nationwide, and particularly the $222 million being given to Kansas” for FY 2026, said U.S. Rep. Ron Estes (R-KS). “Rural health care is one of the largest challenges that Kansas faces, and this investment will make a significant difference across the board.
“Your zip code should never determine your access to reliable and quality health care,” Rep. Estes noted. “I’m pleased to see this historic initiative and look forward to seeing the differences that these funds make in Kansas.”
Pennsylvania will receive $193 million for FY 2026, according to U.S. Rep. Rob Bresnahan (R-PA), who advocated for and worked to include the fund as a central component of the recent law.
“This $193 million investment is a major win for Pennsylvania’s rural communities,” Rep. Bresnahan said. “From the start, I pushed to guarantee the Rural Health Transformation Fund was included, because I knew how critical these resources would be for our hospital providers and patients.
“This funding will make a real difference for families across the commonwealth,” he added.