The Trump administration announced Monday funding for the second year of the Rural Health Transformation Program (RHTP), with $10 billion in awards slated for all 50 states.
The U.S. Department of Health and Human Services (HHS) announced awards through the Centers for Medicare and Medicaid Services.
“President Trump made a historic investment in rural America, and HHS is putting those resources to work in every state,” said Robert F. Kennedy, Jr., HHS secretary, in a statement. “This next $10 billion will expand access to care, strengthen the rural health workforce, improve prevention, and help states build solutions that fit the needs of their own communities. We are giving rural America the resources and flexibility to build stronger health systems that deliver better care and better outcomes.”
Under the statute, half of the $10 billion-per-year distribution is split between the states evenly. The remaining half is determined by the CMS, with a portion of second-year funding being determined by states’ progress in implementing approved RHTP plans.
Federal officials say the annual review “strengthens accountability” for the investment.
Every state submitted applications to the federal government last November outlining plans to improve rural healthcare through their share of $50 billion in funds from the program, with CMS announcing first year awards in December.
Similar to fiscal year 2026, Texas and Alaska will receive the largest amount of funding as part of the program. Texas is set to receive $281,976,026, while Alaska will receive $272,653,149.
Other top recipients were Montana ($239,740,669), California ($231,105,823), Oklahoma ($227,097,543), Kansas ($225,896,117) and Georgia ($221,731,766).
New Jersey will receive the lowest amount of funding at $142,338,224, followed by Connecticut ($153,652,078), Rhode Island ($158,171,967), Massachusetts ($158,392,692) and Delaware ($160,294,521).
“Rural Americans have life expectancies three years shorter than their urban peers, but President Trump’s Rural Health Transformation Program is funding the historic investments necessary to close that gap,” said Mehmet Oz, M.D., CMS administrator, in a statement. “States have already put these resources to work bringing better care closer to home for their rural communities, and CMS looks forward to helping them build on that progress in the coming year.”