New KFF Analysis Examines State-By-State Awards for Rural Health Transformation

https://www.kff.org/state-health-policy-data/first-year-rural-health-fund-awards-range-from-less-than-100-per-rural-resident-in-ten-states-to-more-than-500-in-eight/?utm_campaign=KFF-Health-Costs&utm_medium=email&_hsenc=p2ANqtz-931U0EAJIKmyoEb8YmGjUceD5D9j1sAugprjQFaiy826ylRWc3cAycdAidYvBjbjLgs7KHjjditUnNudOsqoLi5YO7Sg&_hsmi=397149045&utm_content=397149045&utm_source=hs_email A new KFF analysis of the initial awards to states under the federal Rural Health Transformation Program shows relatively modest variation in total awards this year across states but wide variation in how much states will receive per rural resident. Eight states, including California and Texas, will get less than $100 per rural resident this year through the fund, while 10 states, including Alaska and New Jersey, will get more than $500 per rural resident. The analysis also examines total award by state, which ranges from $147 million in New Jersey to $281 million in Texas. The $50 billion five-year program was created under the July 2025 budget reconciliation law to help offset the impact of other health care changes in the bill, which include an estimated $911 billion reduction in federal Medicaid funding over 10 years, including an estimated $137 billion reduction in rural areas. The Centers for Medicare and Medicaid Services says the funding is meant to benefit health in rural communities broadly, rather than just offsetting the impact of cuts on rural hospitals. Contact: Craig Palosky | 202.654.1369 | CraigP@kff.org