All 50 states submit applications for rural health funding under new CMS initiative

All U.S. states have applied for funding under CMS’s new initiative to reimagine rural healthcare, with approved projects focusing on expanding access, improving quality, and fostering state-driven innovations, with funding decisions expected by year's end.
Nov. 10, 2025
2 min read

The Centers for Medicare & Medicaid Services (CMS) opened applications for funding from their new Rural Health Transformation Program on September 15. Upon closing the applications, the agency reported that all 50 U.S. states aim to enhance their rural healthcare.

The program is part of the Working Families Tax Cuts legislation [Public Law 119-21] and will work to better America’s rural healthcare. Applying states were required to tell CMS how they “intend to expand access, enhance quality, and improve outcomes for patients through sustainable, state-driven innovation.”

All approved states will obtain baseline funding, according to CMS. The agency will award the remaining funding to applications with the most merit. A team of experts will analyze each application, and approvals will be announced before the end of the year. Funding will be issued over five years.

CMS Administrator Dr. Mehmet Oz expressed in a statement, “Seeing all 50 states come forward to reimagine the future of rural health is an extraordinary moment. This program moves us from a system that has too often failed rural America to one built on dignity, prevention, and sustainability. Every state with an approved application will receive funding so it can design what works best for its communities—and CMS will be there providing support every step of the way.”

About the Author

Erin Brady

Managing Editor

Erin Brady is Managing Editor of Medical Laboratory Observer.

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