Texas has secured over $1.4 billion in federal funding to revitalize rural health care, with the Centers for Medicare & Medicaid Services notifying the Texas Health and Human Services Commission that the state will receive $281 million annually for five years through the Rural Health Transformation Program. The program is part of the One Big Beautiful Bill Act’s $50 billion allocation for rural health care.
Governor Greg Abbott highlighted the significance of the investment in a statement, saying: “Rural Texans across the state will benefit from this historic federal investment. We will strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives.” Texas submitted its “Rural Texas Strong: Supporting Health and Wellness” application in November and is now positioned to implement improvements across rural regions.
Funding Application Process
The funding allocation will be distributed through a competitive process open to local governments, rural hospitals, federally qualified health centers, behavioral health providers, and other entities. Applications are scheduled to open in spring, with details available on the HHSC Grants webpage. Eligible uses for the funds include chronic disease prevention, recruiting and training health care professionals, upgrading clinic and hospital equipment, and implementing cybersecurity measures.
Texas Health and Human Services Executive Commissioner Cecile Young emphasized the state’s readiness to act on the investment. According to the Governor Abbott’s office press release, Young stated that “through collaboration with local stakeholders, Texas is ready to implement solutions that will improve health care in these areas.” The funding is intended to address persistent barriers to comprehensive health services in rural communities and expand access to preventive and lifesaving care.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://hoodline.com/2025/12/texas-secures-1-4-billion-federal-boost-for-rural-health-care-revitalization/