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The Trump administration is doubling down on rural healthcare, announcing $10 billion in second-year awards for the Rural Health Transformation Program (RHTP) across all 50 states. Half the funds are split evenly among states, while the other half is distributed by CMS — partly based on how well states have implemented their approved RHTP plans so far. The program is part of a broader $50 billion federal commitment to strengthen rural health systems.
The Trump administration has announced $10 billion in second-year funding for the Rural Health Transformation Program (RHTP), with awards distributed to all 50 states through the Centers for Medicare and Medicaid Services (CMS). HHS Secretary Robert F. Kennedy, Jr. framed the investment as a continuation of a historic commitment to rural America, with goals including expanding care access, growing the rural health workforce, and improving prevention.
The funding formula splits the $10 billion in two: half is divided equally among all states, while CMS determines the other half — with a portion of year-two awards now tied to how effectively states have implemented their approved RHTP plans. Every state submitted applications last November outlining their rural health improvement strategies, and first-year awards were announced in December.
By the Numbers:
Why it matters: Rural communities have long faced healthcare access gaps — from provider shortages to limited specialty care. This sustained, performance-linked federal investment signals a shift toward accountability in rural health funding, pushing states to not just plan, but deliver results.
