NRHA Submits Statement for the Record for Senate Finance Committee Hearing

On April 22, 2026, the Senate Finance Committee held a hearing, The President’s Fiscal Year (FY) 2027 Department of Health and Human Services (HHS) Budget, with HHS Secretary Robert F. Kennedy Jr. testifying on the Department’s priorities and the President’s FY 2027 Budget Request.

NRHA submitted a statement for the record to address and clarify the role of the Rural Health Transformation Program (RHTP) and rural hospital sustainability.  

In response to concerns about rural hospital closures and viability during the hearing, Secretary Kennedy noted that rural hospitals will receive significant resources to sustain access through the RHTP.  While RHTP grew out of Congress’ concerns that reductions in Medicaid reimbursement would harm rural hospitals, HHS and CMS have consistently stated that the RHTP is not intended to supplant losses associated with changes to Medicaid enacted in H.R. 11 nor keep rural hospital doors open.

To direct RHTP funds to rural hospital sustainability, NRHA has asked CMS to revise its guidance to allow for the use of funds for enhancing payment rates for already billable services and uncompensated care for rural populations. NRHA requests that Congress provide direction to the Administration to ensure the change in sub-regulatory program guidance to allow these revisions consistent with the initial intent of the law. Further, NRHA offered recommendations to Congress on sustainable, long-term reimbursement policies that would support rural hospitals if paired with the investments from RHTP. Additionally, NRHA offers clarification on the amount of resources going towards rural hospitals differing from the Secretary’s framing during last week’s hearing.

NRHA appreciates Congress’s attention to the health care needs of rural Americans and the Administration’s commitment to successfully administering the RHTP. We strive to continue to act as a resource for Congress and the Administration to ensure successful implementation and oversight of RHTP in order to protect, sustain, and improve health care delivery for rural patients.

Read NRHA’s statement for the record. For additional information contact NRHA staff.