Majority Leader | Research | The Leader Board | THE NEWSR...Skip to primary navigation Skip to content×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNE×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNExxsearchxMENUFacebookXInstagramFacebookXInstagramVisit Leader Thune's South Dakota Site Here THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER THUNExxsearchxMENUHomeTHE NEWSROOMThe Leader Board01.05.26Republicans’ Rural Health Transformation Program Breathes New Life Into Rural Health CareCreated by Republicans’ Working Families Tax Cuts, the Rural Health Transformation Program Has Awarded Grants to Every State to Help Protect Health Care Access for Rural Communities LAST WEEK, THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) ANNOUNCED THAT EVERY STATE HAD APPLIED FOR AND WILL RECEIVE RURAL HEALTH TRANSFORMATION (RHT) PROGRAM FUNDING“The Centers for Medicare & Medicaid Services (CMS) … announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation (Public Law 119-21) to strengthen and modernize health care in rural communities across the country.” (Centers for Medicare & Medicaid Services: CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States – 12/29/25)“[D]isbursements for states are between $145 million and $281 million for 2026, amounts largely driven by how large a state’s rural population is. Annual allotments will be reassessed based on states’ ability to meet the criteria laid out in their applications.” (Politico: Trump admin doles out billions for rural health – 12/29/25)“[A]pproximately 60 million people in the United States—20% of the population—who live in rural communities and rely on rural hospitals for their health care.” (Bipartisan Policy Center: Rural Hospitals and the Rural Health Transformation Program: What Comes Next – 7/10/25)“According to the National Rural Health Association, roughly 20 percent of adults and 40 percent of children in rural areas rely on Medicaid or the Children’s Health Insurance Program.” (The Hill: Trump administration launches rollout of $50B Rural Health Fund – 12/29/25)CREATED BY REPUBLICANS’ WORKING FAMILIES TAX CUTS LAW, THE RHT PROGRAM WILL ADDRESS RURAL HOSPITAL SHORTFALLS AND HELP MODERNIZE HEALTH CARE ACCESS FOR MILLIONS OF AMERICANS“The purpose of this $50 billion investment is to allow us to rightsize the system and to deal with the fundamental hindrances of improvement in rural health care.” – CMS Director Mehmet Oz“This unprecedented federal investment will help states expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home.” (Centers for Medicare & Medicaid Services: CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States – 12/29/25)Republicans’ historic investment in rural health care creates a strategic partnership between the federal government and the states, while ensuring accountability and oversight along the way:“CMS project officers dedicated to each state will convene program kickoff meetings and provide ongoing guidance and technical assistance during implementation. States will submit regular updates so CMS can track progress, identify proven approaches, support successful execution of their plans, and ensure strong oversight throughout the program.” (Centers for Medicare & Medicaid Services: CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States – 12/29/25)All 50 states received funding under the RHT program, and the need-based funding is already being celebrated across the country:“The Georgia Hospital Association welcomed the creation of the Rural Health Transformation Program, saying it reflects growing recognition of the challenges facing rural hospitals and providers. In a statement, the association said Georgia’s first-year award includes initiatives that could provide a meaningful boost to rural health care, particularly through technology upgrades, workforce investments and improved connections between patients and providers.” (WRDW Augusta: Federal funding offers hope, raises questions for Ga. rural hospitals – 12/31/25)“‘As a relatively small state, this will help us a lot to keep our hospitals open, to make sure there are providers available to have telehealth available,’ Hawaii Democratic Gov. Josh Green told POLITICO.” (Politico: Trump admin doles out billions for rural health – 12/29/25)“Jess Bax, director of the Missouri Department of Social Services, said in a press release from Gov. Mike Kehoe’s office Monday that the funding could ‘change the landscape of healthcare access and outcomes for our rural communities.’” (Southeast Missourian: Missouri awarded $216 million by feds to close rural health gap – 1/2/26)In Ohio, “The state’s proposal focuses on addressing barriers to healthcare by building on existing state investments to expand access to care, strengthen the rural health workforce and modernize facilities and technology.” (Mahoning Matters: Gov. DeWine announces plans for Ohio’s rural health transformation $200M award – 1/2/26)In Texas, “The state’s health care agency said it will use the funds to strengthen rural health care clinics in a variety of ways, including: creating wellness and nutrition programs to rural providers; educating and attracting health care professionals to work in rural areas; and modernizing resources and technology in rural centers. More specifically, it plans to ‘add more than a thousand rural health care’ positions with the additional funds.” (Texas Tribune: Texas to receive $281 million in federal funds for rural health care – 12/29/25)“According to [Democrat North Carolina Gov. Josh] Stein’s office, the RHTP will improve health care delivery for more than 3 million North Carolinians in rural communities, support more than 400 rural health facilities, and bring hundreds of millions of dollars in federal investment to the state over the next five years.” (WECT Wilmington: North Carolina receives $213 million federal grant for rural health transformation – 12/29/25)DESPITE EVERY STATE APPLYING FOR FUNDING, DEMOCRATS VOTED AGAINST THIS FUNDING AND SHUT DOWN THE GOVERNMENT IN AN EFFORT TO REPEAL ITDemocrats have attempted to repeal the health provisions of the Working Families Tax Cuts, and by extension the $50 billion RHT program, and they even shut down the federal government in an attempt to do so. (Punchbowl News: AM: Dems, GOP dig in as shutdown nears – 9/18/25; Politico: GOP boosts rural hospital fund – 7/1/25; Paragon Health Institute: Championing Senate Reforms and Countering Rural Hospital Hysteria in the Fight Against Medicaid Money Laundering – 6/27/25)Before its passage, Senate Democrat Leader Chuck Schumer (D-N.Y.) commented on the RHT program, saying, “This little fund to help reimburse rural hospitals is just a fraud.” (CQ: Senate Democrats Hold Media Availability After Closed Policy Luncheon – 6/24/25)Despite Schumer calling the program a “fraud,” New York and every other state applied for and received funding from the RHT program. (New York State: New York State Department of Health Submits Application for $1 Billion Under the Federal Rural Health Transformation Program – 11/6/25; Centers for Medicare & Medicaid Services: CMS Announces $50 Billion in Awards to Strengthen Rural Health in All 50 States – 12/29/25)Under the status quo, rural hospitals have been shuttering for decades: Since 2005, approximately 112 rural hospitals have closed. (U.S. Senate Committee on Finance: Crapo Applauds Rural Health Transformation Program Awards – 12/29/25)“Medicaid expansion has failed to halt rural hospital closures, and in some cases it contributes to them. The reason is simple: Medicaid is so poorly run that it often adds financial burdens to hospitals.” (The Wall Street Journal: op-ed: Medicaid Expansion Won’t Stop Rural Hospital Closures – 4/28/23)“The Biden administration… enacted several major Medicaid rule changes with giant fiscal costs,” including a rule finalized in 2024 that keeps people on Medicaid “when they are no longer eligible,” while restricting the times “when states may verify changes in eligibility.” (Paragon Health Institute: Biden’s Medicaid Changes: High Costs, Misguided Policy – 11/6/24)“Per the Congressional Budget Office, federal outlays on [Medicaid] have been positively soaring, from $409 billion in 2019 to $615 billion in 2023, and projected to hit $655 billion in 2025. That’s a 50% jump from 2019 to 2023, and 60% to 2025.” (New York Post: Editorial: ‘Deadly’ GOP ‘cuts’ don’t even touch Medicaid’s 50% growth since 2019 – 6/3/25)“Over the last decade, Medicaid has outpaced the growth of the other two largest federal entitlement programs: Social Security and Medicare.” (Cato Institute: Medicaid Is Driving Deficits: Republicans Are Scarcely Tapping the Brakes – 5/13/25)But “[a]ccording to the Centers for Medicare and Medicaid Services (CMS) Office of the Actuary, just 4.9% of overall Medicaid inpatient hospital spending goes to rural hospitals.” (White House: Memorandum to Senate Republicans – accessed 1/5/26)PrintEmailTweetPreviousTHE NEWSROOMSENATE RESOURCESABOUT LEADER THUNEFacebookXInstagram
