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Second Year of Rural Health Transformation Funding Is Set

Freestyle2 min readNov 9, 2026
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CMS on Nov. 9 set $10 billion in awards for year two of the Rural Health Transformation Program.

The feds on Nov. 9 set $10 billion in awards for year two of the Rural Health Transformation Program (RHTP), which will help all 50 states build on early progress and deliver lasting improvements in access, quality, and health outcomes for rural Americans, according to the announcement by the Dept. of Health and Human Services (HHS) and CMS.


Over the past months, CMS has released update after update for year one of the program, with only the merest of mention of the skilled nursing sector. But experts say many of the rural workforce, care delivery, and technology updates will impact the sector, even if indirectly.


In the second year, CMS said depending on each state’s priorities, the RHTP initiatives may include efforts to improve prevention and chronic disease management, create sustainable access to care, strengthen the rural health workforce, advance innovative care and payment models, and put modern technology and data to work for rural patients and providers.


“This year’s awards also reflect, in part, states’ progress implementing their approved RHTP plans. All 50 states submitted annual reports documenting their progress, which CMS reviewed as part of determining each state’s award,” CMS said.


State awards were determined based on a variety of factors, including state progress on implementation of state policies to improve rural health, such as the Presidential Fitness Test and Continuing Medical Education for physicians on nutrition.


Below are the state awards.


Year 2 Rural Health Transformation Awards

State

FY 2027 Award

Alabama

$199,278,801 

Alaska

$272,653,149 

Arizona

$165,014,474 

Arkansas

$207,788,910 

California

$231,105,823 

Colorado

$197,164,933 

Connecticut

$153,652,078 

Delaware

$160,294,521 

Florida

$203,828,071 

Georgia

$221,731,766 

Hawaii

$189,615,723 

Idaho

$182,698,377 

Illinois

$190,458,454 

Indiana

$208,908,591 

Iowa

$216,007,657 

Kansas

$225,896,117 

Kentucky

$211,330,599 

Louisiana

$211,858,378 

Maine

$190,358,993 

Maryland

$168,410,112 

Massachusetts

$158,392,692 

Michigan

$170,613,270 

Minnesota

$190,833,571 

Mississippi

$204,677,190 

Missouri

$218,547,090 

Montana

$239,740,669 

Nebraska

$219,247,775 

Nevada

$182,403,722 

New Hampshire

$204,312,551 

New Jersey

$142,338,224 

New Mexico

$211,044,635 

New York

$207,750,071 

North Carolina

$216,824,573 

North Dakota

$206,379,627 

Ohio

$201,926,470 

Oklahoma

$227,097,543 

Oregon

$197,254,520 

Pennsylvania

$190,730,492 

Rhode Island

$158,171,967 

South Carolina

$195,986,033 

South Dakota

$187,653,446 

Tennessee

$210,344,524 

Texas

$281,976,026 

Utah

$191,923,052 

Vermont

$189,996,036 

Virginia

$195,710,118 

Washington

$177,060,212 

West Virginia

$202,081,355 

Wisconsin

$203,695,089 

Wyoming

$207,231,931 

 

Created through the Working Families Tax Cuts Act, RHTP is giving states resources to transform how healthcare is delivered in rural communities, CMS said.


The legislation created a $50 billion, five-year investment to address longstanding challenges facing rural communities. 


For a fact sheet about the RHTP and Year 2 awards, including how annual funding amounts are determined, visit: https://www.cms.gov/newsroom/fact-sheets/rural-health-transformation-program-year-2-awards.


Additional information about the RHTP, including state information, program guidance, and implementation resources, is available at: https://www.medicaid.gov/resources-for-states/rural-health. 


Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.

Second Year of Rural Health Transformation Funding Is Set | Park Place