Patients have their blood pressure checked and other vitals taken at an intake triage at a Remote Area Medical mobile dental and medical clinic in October 2023 in Grundy, Virginia. (Photo by Spencer Platt/Getty Images)
WASHINGTON — All 50 states have applied for the $50 billion Rural Health Transformation Program in Republicans’ “big, beautiful” law, the Centers for Medicare and Medicaid Services said Thursday.
States had from Sept. 15 through Wednesday to apply for the program, which was authorized under the mega tax and spending cut package passed by Republicans and signed into law by President Donald Trump. The fund is intended to offset the budget impacts on rural areas due to sweeping Medicaid cuts.
However, the temporary fund could only offset a little more than one-third of the package’s estimated $137 billion cut to federal Medicaid spending in rural areas over the next decade, according to the nonpartisan health research organization KFF.
Administrator of the Centers for Medicare and Medicaid Services Dr. Mehmet Oz said the program “moves us from a system that has too often failed rural America to one built on dignity, prevention, and sustainability” in a Thursday statement alongside the announcement.
Oz said “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.”
Each state was asked to “design a plan for transforming its rural health care system” and outline in proposals how they “intend to expand access, enhance quality, and improve outcomes for patients through sustainable, state-driven innovation.”
The program allocates $25 billion equally to approved states between fiscal years 2026 and 2030. CMS said states meeting the baseline criteria will then “undergo a rigorous, data-driven merit review” for the remaining half of the funds.
In September, when announcing the application opening, CMS said the remaining half of funds would be administered to approved states based on “individual state metrics and applications that reflect the greatest potential for and scale of impact on the health of rural communities.”
CMS said approved awardees will be notified by Dec. 31.
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This story was posted by Michigan Advance, which is part of States Newsroom, a national 501(c)(3) nonprofit. For more, go to https://michiganadvance.com.