The second round of Rural Health Transformation Program (RHTP) has been announced for all 50 states, according to the Centers for Medicare & Medicaid Services (CMS) and U.S. Department of Health and Human Services (HHS).
A total of $10 billion will be split between all 50 states throughout fiscal year 2027. This is part of the RHTP’s $50 billion initiative, announced in late 2025.
Aiming to enhance rural health, the 2026 awards helped states to:
Make healthcare reachable, focusing on preventive, primary, emergency, maternal, and behavioral health services
Address the workforce shortage with new initiatives
Update buildings and technology used for healthcare
Promote local care
Create new care models
The 2027 funding will help states build on the rural health enhancement projects they started in 2026. Allocated amounts were partially established based on states’ rural health transformation progress in 2026. Each state will receive between $142 million and $281 million in 2027.
