Updates on the Rural Health Transformation Program (RHTP)
The Rural Health Transformation (RHT) Program was authorized by the One Big Beautiful Bill Act (Section 71401 of Public Law 119-21) and empowers states to strengthen rural communities across America by improving healthcare access, quality, and outcomes by transforming the healthcare delivery ecosystem. Through innovative system-wide change, the RHT Program invests in the rural healthcare delivery ecosystem for future generations.
Program Structure
RHT Program funding is $50 billion to be allocated to approved States over five fiscal years, with $10 billion of funding available each fiscal year, beginning in fiscal year 2026 and ending in fiscal year 2030.
- 50% to be distributed equally amongst all approved States
- 50% will be allocated by CMS based on a variety of factors including rural population, the proportion of rural health facilities in the State, the situation of certain hospitals in the State, and other factors to be specified by CMS in the NOFO
Uses of Funds
States must use RHT Program funds for three or more of the approved uses of funds:
- Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.
- Providing payments to health care providers for the provision of health care items or services, as specified by the Administrator.
- Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases.
- Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.
- Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years.
- Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes.
- Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines.
- Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services.
- Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate.
- Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the Administrator.
Eligibility
In accordance with the authorizing statute, only the 50 U.S. states are eligible to receive an RHT Program award; the District of Columbia and U.S. Territories are not eligible.
How to Apply for RHT Program Funding
- Application instructions to apply for RHT Program funding were included in the NOFO released on September 15, 2025
- CMS will engage with States in the open application period to answer questions
- Application deadline is November 5, 2025.
- Awards will be decided by December 31, 2025
CMS RHT Program Application Webinars
- When: Sep 19, 2025 3:00 PM – 4:30 PM Eastern Time. REGISTER HERE
- When: Sep 25, 2025 3:00 PM – 4:30 PM Eastern Time. REGISTER HERE
NRHA RHT Office Hours
- NRHA RHT Office Hours: October 2, 2025 1 PM Eastern Time. REGISTER HERE
- NRHA RHT Office Hours: October 17, 2025 1 pm Eastern Time. REGISTER HERE
Resources
NRHA Statement on the Rural Health Transformation Program
CMS Rural Health Transformation Program Website