NRHA statement on Rural Health Transformation Program year 2 awards.
PRESS RELEASE
National Rural Health Association
November 9, 2026
On November 9, 2026, the Center of Medicare and Medicaid Services (CMS) announced the awards for fiscal year (FY) 2027 of the Rural Health Transformation Program (RHTP). This second-year distribution to all 50 states ranges between $142M-$281M. RHTP Year 2 awards largely preserve the Year 1 funding distribution, with total funding essentially unchanged and most states experiencing adjustments of less than 2%. The largest gains went to North Dakota, Iowa, Virginia, and Montana while Florida, Vermont, and New Jersey saw the largest reductions.
The National Rural Health Association (NRHA) continues to applaud the Administration for prioritizing rural health system infrastructure, workforce, and innovation through these grants. A substantial portion of Year 1 investments focus on areas rural communities need to sustain access to care. States are emphasizing workforce, rural hospital and health-system sustainability, technology, innovative payment and service models, and disease prevention. The priority is to ensure these investments produce long-term delivery system change—not simply short-term projects—for rural providers and the patients they serve.
As Year 2 awards move forward, NRHA urges CMS to continue strengthening transparency and communication with rural stakeholders. RHTP funding must ultimately reach frontline rural providers and communities, even when states distribute it through agencies, vendors, associations, universities, or other intermediaries. NRHA is committed to working with CMS, the Administration, and our state partners to ensure this funding supports lasting health care access for rural communities.
For more information on RHTP, please see CMS' RHTP webpage for more details on Year 2 funding including a table of Year 2 funding and interactive maps showing change between Year 1 and Year 2 awards.
Your chance to meet with and hear from a new Congress and the administration about the future of rural health funding is at NRHA’s 38th Rural Health Policy Institute Feb. 9-11 in D.C.