HHS awards $10B to support rural healthcare through annual program

The U.S. Department of Health and Human Services (HHS) has announced awards for the second year of the Rural Health Transformation Program (RHTP), with $10 billion being divided up between all 50 states, based on need.

According to a statement released Monday, the Centers for Medicare & Medicaid Services (CMS) will be responsible for doling out the funds for 2027, which are designed to build upon the $50 billion handed out last year.

The money will be used to help states improve healthcare delivery in rural areas, with an emphasis on access and quality, the agencies said. Notably, half of the $10 billion is split evenly between all 50 states, with the remaining $5 billion being allocated based on plans developed by states as well as their reports on progress.

“This next $10 billion will expand access to care, strengthen the rural health workforce, improve prevention, and help states build solutions that fit the needs of their own communities,” HHS Secretary Robert F. Kennedy, Jr., said in a statement. “We are giving rural America the resources and flexibility to build stronger health systems that deliver better care and better outcomes.”

Per the terms of the RHTP, money will be spent on investments in equipment and technology, on establishing new partnerships, launching new patient care initiatives and bringing healthcare resources to rural America—including staffing pipelines and new training.

“Rural Americans have life expectancies three years shorter than their urban peers, but President Donald Trump’s RHTP is funding the historic investments necessary to close that gap,” said CMS Administrator Dr. Mehmet Oz. “States have already put these resources to work bringing better care closer to home for their rural communities, and CMS looks forward to helping them build on that progress in the coming year.”

States submitted initial applications in November 2025, with the first $50 billion in awards announced the following December. Progress reports are now submitted to CMS annually.

The two that received the largest awards are Texas and Alaska, set to take nearly $282 million and $273 million, respectively. Both states also received the largest awards during the first round of RHTP distributions. 

The full breakdown for 2027 is as follows:

• Alabama - $199,278,801
• Alaska - $272,653,149
• Arizona - $165,014,474
• Arkansas - $207,788,910
• California - $231,105,823
• Colorado - $197,164,933
• Connecticut - $153,652,078
• Delaware - $160,294,521
• Florida - $203,828,071
• Georgia - $221,731,766
• Hawaii - $189,615,723
• Idaho - $182,698,377
• Illinois - $190,458,454
• Indiana - $208,908,591
• Iowa - $216,007,657
• Kansas - $225,896,117
• Kentucky - $211,330,599
• Louisiana - $211,858,378
• Maine - $190,358,993
• Maryland - $168,410,112
• Massachusetts - $158,392,692
• Michigan - $170,613,270
• Minnesota - $190,833,571
• Mississippi - $204,677,190
• Missouri - $218,547,090
• Montana - $239,740,669
• Nebraska - $219,247,775
• Nevada - $182,403,722
• New Hampshire - $204,312,551
• New Jersey - $142,338,224
• New Mexico - $211,044,635
• New York - $207,750,071
• North Carolina - $216,824,573
• North Dakota - $206,379,627
• Ohio - $201,926,470
• Oklahoma - $227,097,543
• Oregon - $197,254,520
• Pennsylvania - $190,730,492
• Rhode Island - $158,171,967
• South Carolina - $195,986,033
• South Dakota - $187,653,446
• Tennessee - $210,344,524
• Texas - $281,976,026
• Utah - $191,923,052
• Vermont - $189,996,036
• Virginia - $195,710,118
• Washington - $177,060,212
• West Virginia - $202,081,355
• Wisconsin - $203,695,089
• Wyoming - $207,231,931