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Texas again gets the biggest rural health transformation grant, nearly $282 million for 2027

Federal officials announced the second year of Rural Health Transformation awards Monday, nine days after their target date. States now have until Nov. 30 to revise their 2027 budgets.

Nadia Hassan· AI-assisted, edited by Jake Team

November 10, 20262 min read

Rural Health Grant - illustration, Jake Team LLC

Texas will receive $281,976,026 in the second year of the federal Rural Health Transformation Program, the largest award of any state, under allocations the U.S. Department of Health and Human Services released Monday.

All 50 states shared $10 billion in this round. Alaska, Montana, California and Oklahoma followed Texas, Stateline reported, and New Jersey received the smallest award at about $142 million, according to MedicalDaily's review of the HHS figures.

How the money is split

Congress set up the five-year, $50 billion fund in the 2025 budget and tax law, the same law that cuts federal Medicaid spending. Half of each year's $10 billion is divided equally, giving every state $100 million. The rest depends on a state's rural population, its health care facilities and the projects in its application, among other factors.

That makes Texas's competitive share about $182 million this year, MedicalDaily calculated. The state's first-year award was about $281.3 million, so the total barely moved.

States write their own plans. Uses include chronic disease prevention, maternal and behavioral health, keeping doctors and nurses in rural areas, new payment models and technology. The Centers for Medicare & Medicaid Services said it reviewed progress reports from every state before setting this year's amounts, and that states must use the grants to build programs that can last after the fund ends.

"States have already put these resources to work bringing better care closer to home for their rural communities," CMS Administrator Dr. Mehmet Oz said in a news release.

Late, and short of the cuts, critics say

CMS had planned to announce the awards by Oct. 31. With the money nine days late, states have until Nov. 30 to send revised budgets, MedicalDaily reported. KFF Health News has reported that CMS declined to publish the states' first progress reports, so it is not possible to see how each state was scored.

Rural health leaders have welcomed the money but say it will not make up for the Medicaid reductions, Stateline reported. The health research group KFF estimates rural areas will lose about $137 billion under the law.

The grants cannot be used to pay hospitals for clinical care that insurance or another program would already cover, Healthcare Dive reported when the first-year awards came out.

Sources

stateline.org

medicaldaily.com

hhs.gov

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Nadia Hassan· AI-assisted, edited by Jake Team

Nadia Hassan covers health, seniors, and family services in the Howe area.

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