Texas will receive a historic investment of over $1.4 billion in federal funding over five years to improve rural health care throughout the state, according to an announcement from the Centers for Medicare & Medicaid Services (CMS) to the Texas Health and Human Services Commission (HHSC). The funding comes through the Rural Health Transformation Program, part of the One Big Beautiful Bill Act.
“Rural Texans across the state will benefit from this historic federal investment,” Gov. Greg Abbott said on December 29 when announcing the funding. “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 will receive $281 million each year for five years, the most of any state in the program. The state submitted its application, “Rural Texas Strong: Supporting Health and Wellness,” to CMS in early November.
The broader Rural Health Transformation Program is allocating $50 billion to states over five years to help transform rural health care. Cecile Young, executive director of the state Health and Human Services Commission, emphasized the significance of the investment. “We are grateful for the federal government’s investment in increasing access to preventive and lifesaving care for people who live in rural communities across the state. Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”
Planned Funding Initiatives
HHSC will use a competitive process to allocate funds for several categories of initiatives. These include grants to reduce chronic disease through prevention, wellness and nutrition services; investment in consumer-facing technology to engage patients in improving their health; deployment of artificial intelligence and telehealth services to bridge service gaps; recruitment and retention of rural health care workers through career development, scholarships, relocation payments, and training programs; improvement of cybersecurity defenses to protect patient data; and equipment upgrades in rural hospitals and clinics. Local governments, rural hospitals, rural federally qualified health centers, rural behavioral health providers, and other qualified applicants will be eligible to apply for funding in the spring.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.boernestar.com/article/12428,fed-to-boost-state-rural-health-care-projects