Feds award $10B to states in second year of rural health grants

Federal officials on Monday announced $10 billion in awards across all 50 states in the second year of the Rural Health Transformation Fund, grants created by Congress to bolster rural health in response to concerns about Medicaid cuts. Texas received the largest grant for the 2027 fiscal year — almost $282 million — followed by Alaska, Montana, California and Oklahoma. The five-year fund is providing $50 billion in grants meant to address rural healthcare access and health improvement, with $10 billion available each year until 2030. Congress created the program in response to concern from rural health care providers — as well as lawmakers on both sides of the aisle — about the effects of sweeping Medicaid cuts in the One Big Beautiful Bill Act that President Donald Trump signed last year. Rural areas are expected to lose about $137 billion, according to health research organization, KFF.

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