Trump Admin Invests $50 Billion Into Rural Health Care

Rural health care is getting a big boost thanks to the Trump administration.

The Centers for Medicare and Medicaid Services announced on Monday that all 50 states will receive funding through the Rural Health Transformation Program, a $50 billion investment established through President Trump’s Working Families Tax Cuts legislation.

This $50 billion initiative is meant to strengthen and modernize health care in rural communities across the country. The funds will be allocated over five years, with $10 billion available each year from 2026 through 2030. For the first year, the money for each state ranges from $147 million to $281 million.

“Today marks an extraordinary milestone for rural health in America,” said CMS Administrator Dr. Mehmet Oz. “Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running.”

Thanks to the Rural Health Transformation Fund, created by congressional Republicans and signed into law by President Trump, we are investing $50 BILLION in rural healthcare across America! pic.twitter.com/4pA6EsLc0f

— House Republicans (@HouseGOP) December 29, 2025

Health and Human Services Secretary Robert F. Kennedy Jr. said that because of the investment, rural Americans will have affordable health care close to home, free from bureaucratic obstacles.

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“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Kennedy said. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ health care.”

The Centers for Medicare and Medicaid Services stated in a press release Monday that states are improving healthcare access in rural areas by planning efforts that will:

• Bring More Care Within Reach
• Strengthen and Sustain the Rural Clinical Workforce
• Modernize Rural Health Infrastructure and Technology
• Driving Structural Efficiency & Empowering the Community Providers
• Advance Innovative Care Models and Payment Reform

Oz told reporters Monday the $50 billion investment isn’t intended to pay off the bills: “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.”

As part of the program, states are required to submit regular updates to the Centers for Medicare & Medicaid Services. Oz said he wants states to get creative with the funds to change the way health care has been administered in rural America.

“By doing this the right way and by allowing more practitioners to move to these areas and training nurses and doctors in these rural areas, we think they will stay put and provide high-quality care,” Oz said.