All 50 States Get $10 Billion Rural Health Funding in 2026

Federal officials announced Monday that all 50 states will receive portions of $10 billion in funding starting in 2026 to enhance health care access in rural communities, through the newly created Rural Health Transformation Program. The initiative, authorized under a federal spending and policy package signed into law earlier this year, totals $50 billion over five years from 2026 through 2030. The awards come amid broader legislation that includes nearly $1 trillion in reductions to Medicaid, the joint federal-state health program for low-income individuals, over the next decade.

The Centers for Medicare and Medicaid Services, which administers the program, allocated the first-year funds after every state submitted applications. Awards range from $147 million to $281 million, with an average of about $200 million per state. Texas received the largest share at $281 million, followed by Alaska with $272 million, California at $234 million, Montana at $234 million and Oklahoma at $224 million. New Jersey got the smallest amount at $147 million. Oregon's allocation stands at $197 million.

Half of the annual funding, or $5 billion, is divided equally among the states. The remaining...