DELMARVA - The Centers for Medicare & Medicaid Services announced on December 29 that all 50 states will receive financial awards to strengthen rural healthcare as part of the Rural Health Transformation Program, a $50 billion, five-year initiative. CMS also announced the establishment of the Office of Rural Health Transformation within the Center for Medicaid and CHIP Services, which will oversee the Rural Health Transformation Program.
The program was established under President Trump's Working Families Tax Cuts legislation and is intended to strengthen and sustain the healthcare workforce, modernize facilities and technology, and expand local access to healthcare in rural areas.
Under the initiative, $10 billion will be available each year from 2026 to 2030. All states will receive first-year awards in 2026 ranging from $147 million to $281 million.
Here locally in 2026, Delaware will receive $157 million, Maryland is set to receive $168 million, and Virginia will get $189 million.
Of the total initiative amount, 50% was split equally among each state. The other 50% was allocated based on a variety of factors. These factors include state metrics on rurality and their existing rural healthcare systems, current or proposed policies that enhance rural healthcare quality and access, and application initiatives that have the greatest potential for impact on rural communities.
To learn more about the goals of the Rural Health Transformation Program, visit the website here.
