How the Rural Health Transformation Program works

The eleven approved uses of funds, the two halves of the $50 billion, all sixteen scored factors with their weights, and why the score is recalculated every year.

Rural Health Transformation Program Year 1 obligations by stateA tile map of all fifty states, each shaded by its federal fiscal year 2026 obligation under the Rural Health Transformation Program. Every state holds an award. Totals run from $147.3 million in New Jersey to $281.3 million in Texas and sum to exactly $10 billion. Source: USAspending.gov, Assistance Listing 93.798, pulled 16 August 2026.AK: $272.2M obligated for FY2026AKME: $190.0M obligated for FY2026MEVT: $195.1M obligated for FY2026VTNH: $204.0M obligated for FY2026NHWA: $181.3M obligated for FY2026WAID: $186.0M obligated for FY2026IDMT: $233.5M obligated for FY2026MTND: $198.9M obligated for FY2026NDMN: $193.1M obligated for FY2026MNIL: $193.4M obligated for FY2026ILWI: $203.7M obligated for FY2026WIMI: $173.1M obligated for FY2026MINY: $212.1M obligated for FY2026NYRI: $156.2M obligated for FY2026RIMA: $162.0M obligated for FY2026MAOR: $197.3M obligated for FY2026ORNV: $179.9M obligated for FY2026NVWY: $205.0M obligated for FY2026WYSD: $189.5M obligated for FY2026SDIA: $209.0M obligated for FY2026IAIN: $206.9M obligated for FY2026INOH: $202.0M obligated for FY2026OHPA: $193.3M obligated for FY2026PANJ: $147.3M obligated for FY2026NJCT: $154.2M obligated for FY2026CTCA: $233.6M obligated for FY2026CAUT: $195.7M obligated for FY2026UTCO: $200.1M obligated for FY2026CONE: $218.5M obligated for FY2026NEMO: $216.3M obligated for FY2026MOKY: $212.9M obligated for FY2026KYWV: $199.5M obligated for FY2026WVVA: $189.5M obligated for FY2026VAMD: $168.2M obligated for FY2026MDDE: $157.4M obligated for FY2026DEAZ: $167.0M obligated for FY2026AZNM: $211.5M obligated for FY2026NMKS: $221.9M obligated for FY2026KSAR: $208.8M obligated for FY2026ARTN: $206.9M obligated for FY2026TNNC: $213.0M obligated for FY2026NCSC: $200.0M obligated for FY2026SCOK: $223.5M obligated for FY2026OKLA: $208.4M obligated for FY2026LAMS: $205.9M obligated for FY2026MSAL: $203.4M obligated for FY2026ALGA: $218.9M obligated for FY2026GAHI: $188.9M obligated for FY2026HITX: $281.3M obligated for FY2026TXFL: $209.9M obligated for FY2026FLFY2026 OBLIGATION, $M147186197206213–281

All 50 states hold an award. $10 billion obligated for FY2026.

The program

What the Rural Health Transformation Program is

A $50 billion federal program authorized by Section 71401 of Public Law 119-21 and administered by CMS. It distributes $10 billion a year from federal fiscal year 2026 through 2030. CMS approved applications from all 50 states in December 2025.

Who can apply

Only states, and the single window closed on 5 November 2025. Health systems and technology companies cannot apply to CMS. They participate as subrecipients of a state award, as subcontractors to an awardee, or through state procurement.

How the money splits

$25B
$25B
Baseline, split equallyWorkload, scored
Rural factors, fixedTechnical, earned

The scored half is recalculated every year. Only the blue quarter is genuinely within a state's control.

What it can pay for

Eleven approved Use of Funds categories, A through K. A state must carry out at least three. Provider payments under category B are capped at 15 percent of the annual award and cannot replace insurance-reimbursable payment.

The eleven approved uses of funds

APrevention and chronic disease
BProvider payments (capped at 15%)
CConsumer technology solutions
DTraining and technical assistance
EWorkforce
FIT advances
GAppropriate care availability
HBehavioral health
IInnovative care
JCapital expenditures and infrastructure
KFostering collaboration
We deliver against this Clinician recruitment, buildings

Category D matters more than it looks. Training and technical assistance is an approved use, so the planning, the workshop and the solution architecture that help an organization adopt technology can be paid for out of the grant rather than out of operating margin.

CMS objectives

The five goals every initiative is measured against

CMS names five strategic goals in the funding opportunity, and every approved use of funds is aligned to them. An initiative that cannot be traced to one of these is hard to defend at review.

Make rural America healthy again

Prevention, chronic disease management, behavioral health and prenatal care, using evidence-based, outcomes-driven interventions.

Where we help

Predictive intervention platforms that turn claims and clinical data into action, and SDOH data unified from hundreds of sources.

Sustainable access

Rural facilities working together, or with regional systems, to share or coordinate operations, technology, primary and specialty care, and emergency services.

Where we help

Multi-tenant platforms that let many organizations share one solution, and virtual coverage that pools scarce clinicians across sites.

Workforce development

Recruiting and retaining clinicians, and helping rural providers practice at the top of their license.

Where we help

Ambient documentation and assessment support that give hours back per clinician, measured rather than promised.

Innovative care

New care models and payment mechanisms that reduce cost, improve quality, and shift care to lower cost settings.

Where we help

Risk adjustment accuracy, value-based care analytics, and treat-in-place models that keep care in the lowest appropriate setting.

Tech innovation

Remote care, data sharing, cybersecurity, and access to digital health tools for rural facilities, providers and patients.

Where we help

The three technology factors CMS scores, all of which we have built and run in production.

Source: Centers for Medicare & Medicaid Services, Rural Health Transformation Program Notice of Funding Opportunity, CMS-RHT-26-001.

Scoring

How RHTP funding is scored, and why that repeats every year

Workload funding is allocated by points. Half of those points come from rural score factors, which are fixed data a state cannot change: rural population, rural facility share, uncompensated care, land area, Medicaid DSH hospitals. The other half is the technical score, and it is earned.

Where the technical points actually are

Each bar is a factor, sized by its weight. CMS classifies every factor as data-driven, initiative-based, or a state policy action. Blue is initiative-based, meaning it is earned by proposing initiatives and then following through on them. Gray is a policy action a legislature takes.

Population health
3.75
3.75
3.75
1.75
13.00%
Provider networks
3.75
3.75
1.75
9.25%
Workforce
3.75
1.75
1.75
7.25%
Payment and integration
3.75
3.75
1.75
9.25%
Technology and access
3.75
3.75
3.75
11.25%
Initiative-based, earned by delivering State policy action 37.5 of the 50 technical points are initiative-based.
Technical score factors, full table
Group Factors and weights Group total
Population health Clinical infrastructure 3.75 · health and lifestyle 3.75 · SNAP waivers 3.75 · nutrition CME 1.75 13.00%
Provider networks Rural partnerships 3.75 · emergency medical services 3.75 · certificate of need 1.75 9.25%
Workforce Talent recruitment 3.75 · interstate licensure compacts 1.75 · scope of practice 1.75 7.25%
Payment and integration Medicaid value-based incentives 3.75 · dual eligibles 3.75 · short-term limited duration insurance 1.75 9.25%
Technology and access Remote care services 3.75 · data infrastructure 3.75 · consumer-facing technology 3.75 11.25%

Technology and access is the only group in which all three factors carry the maximum weight, and all three are initiative-based. Each factor is scored out of 100 across all 50 states, and a state’s award equals its share of the total points earned by every approved state, so this is a relative competition rather than a fixed entitlement.

The part most people miss

Technical scores are recalculated annually. States begin at 50 percent on initiative-based factors and earn the remainder by implementing their initiatives and meeting milestones. CMS may reduce, withhold or recover funds used inconsistently with what the state described in its application.

A state that does not deliver what it promised receives less the following year. Delivery is not a compliance task at the end of the grant. It is what protects the next allocation.

Unspent money leaves the state

Funds a state has not spent by the end of the following fiscal year are redistributed to other states. Money earmarked but not actually paid out does not count as spent.

It is a relative competition

Each factor is scored out of 100 across all 50 states. A state receives its share of the total points earned by every approved state, so standing still is losing ground.

It is a cooperative agreement

Not a hand-off grant. CMS stays substantially involved after award and may be in contact monthly or more often.

Sources

Primary sources worth reading

Everything on this page traces to a primary source. Third-party trackers of this program lag by weeks and have been wrong on state totals and administering agencies, so we use them for documents and never for numbers.

Federal

Analysis and state programs

Last reviewed 16 August 2026. This program changes weekly and we update this page as state announcements land.

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