CMS Announces Rural Health Transformation Program Funding
Published January 12, 2026
By AACOM Government Relations
Federal Policy OME Advocate Rural Medicine
- On December 29, 2025, CMS announced that all 50 states would receive funding through the Rural Health Transformation Program (RHTP), the $50B initiative to strengthen and modernize rural healthcare and the rural health workforce created in response to the One Big Beautiful Bill Act’s Medicaid cuts.
- CMS established the Office of Rural Health Transformation (ORHT) to oversee the program and help states put their rural health transformation plans into action. ORHT will provide technical assistance, coordinate federal and state partnerships and ensure strong oversight and accountability.
- The RHTP funding will be distributed over five years, starting in 2026, with states’ first-year awards ranging from $147M-$281M.
- A detailed press release from CMS includes state-by-state funding allocation and an abstract of state projects. Additionally, the National Rural Health Association maintains a detailed RHTP page and state application summary activity tracker.
- If you are working with any state organizations on projects that would benefit a specific COM or the osteopathic community in your state, please let us know at aacomgr@aacom.org.