CMS Launches $50 Billion Rural Health Transformation Program
Members Encouraged to Engage States on Opportunities to Leverage PACE
The Centers for Medicare & Medicaid Services (CMS) released guidance to states on how to apply to receive funding from the $50 billion Rural Health Transformation (RHT) Program authorized by H.R. 1, the One Big Beautiful Bill Act (OBBBA). State applications are due Nov. 5. There is only one opportunity to apply for funding and one application period for this program. CMS will announce awardees by Dec. 31.
RHT Program funding is available to all 50 states (the District of Columbia is not eligible) to support rural communities in improving health care access, quality and outcomes by transforming the health care delivery ecosystem. States may use program dollars to help rural communities meet five strategic goals focused on making rural America healthy, sustainable access, workforce development, innovative care and technology innovation. Based on this broad strategic framework, some of the technical factors that CMS will consider when evaluating a state’s application include whether the state has at least one integrated care model offering, including PACE. (For details, see pages 90-91 of the application instructions.)
Half of the $50 billion in RHT Program funding ($25 billion in “baseline funding”) will be equally distributed to all approved states over FYs 2026-2030, while the remaining half ($25 billion in “workload funding”) will be allocated by CMS based on discretionary factors, including state policy actions. In the appendix of the application instructions, CMS provides a detailed example of how it would evaluate a state’s current or planned workforce policies outlined in the application (e.g., developing health care professional licensing compacts to increase the supply of accessible rural health providers).
CMS webinars for RHT Program applicants will be held on Friday, Sept. 19, at 3-4:30 p.m. ET (advance registration required) and on Thursday, Sept. 25, at 3-4:30 p.m. ET (advance registration required).
NPA encourages PACE organizations, state PACE associations and other PACE stakeholders to engage their governor’s office and/or state administering agency (SAA) on opportunities to leverage PACE as part of the state’s plan to improve rural health care. For resources to support these discussions, visit the H.R. 1 Resource Hub on the NPA website. Resources include a PACE Saves Money Template, which can be customized to your state, State Advocacy Talking Points and more.
For More Information
- NOFO (with Application Instructions)
- CMS RHT Program Press Release
- CMS RHT Program FAQs
- CMS RHT Program Website
- CMS RHT Program Overview Presentation
- Video Message from CMS Administrator Mehmet Oz, MD
If you have any questions, please contact Katie Pahner, vice president of Regulatory Affairs, or Liz Parry, vice president of State Policy and Advocacy.