On December 29, 2025, the Centers for Medicare & Medicaid Services (“CMS”) announced that it will distribute award amounts to all 50 states under the first year of the Rural Health Transformation Program (the “Program”).[i] CMS also established a new Office of Rural Health Transformation (“ORHT”) within the Center for Medicaid that will be responsible for overseeing the program and leading CMS’ engagement with state and local governments and other stakeholders.[ii] The Program is a first of its kind $50 billion initiative to improve and strengthen healthcare in rural communities nationwide via collaboration between CMS and all 50 states to realize their transformative visions for rural health.How Funding Awards Will Be DistributedThe Program’s $50 billion in funds will be allocated over five years, with $10 billion available each year beginning in 2026. The first year awards to be granted in 2026 range from $147 million (awarded to New Jersey) to $281 million (awarded to Texas... Read the complete article here...Copyright © 2026, Sheppard Mullin Richter & Hampton LLP.
CMS Announces $50 Billion Rural Health Transformation Program: What Providers and States Need to Know
