Fed $$ to boost state rural health care projects

AUSTIN — Texas will receive a historic investment of over $1.4 billion in federal funding over five years to improve rural health care throughout the state.

The Centers for Medicare & Medicaid Services (CMS) notified the Texas Health and Human Services Commission (HHSC) that it is receiving funding through the Rural Health Transformation Program.

“Rural Texans across the state will benefit from this historic federal investment,” Gov. Greg Abbott said Dec. 29, when announcing the funding.

“We will strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives,” Abbott said.

As part of the One Big Beautiful Bill Act, the program is allocating $50 billion to states over five years to help transform rural health care. Texas will receive $281 million each year for five years, the most of any state in the program.

Texas submitted its application, “Rural Texas Strong: Supporting Health and Wellness,” to CMS in early November.

Cecile Young, executive director of the state Health and Human Services Commission, addressed some of the uses for the funding.

“We are grateful for the federal government’s investment in increasing access to preventive and lifesaving care for people who live in rural communities across the state,” Young said. “Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”

HHSC will use a competitive process to allocate funds for initiatives that:

• Offer grants to reduce chronic disease through prevention, wellness and nutrition services.

• Invest in consumer-facing technology to engage with patients on improving their health.

• Deploy artificial intelligence and telehealth services to bridge service gaps.

• Recruit and retain rural health care workers through career development, scholarships, relocation payments, and training programs.

• Improve cybersecurity defenses to protect patient data.

• Upgrade equipment in rural hospitals and clinics.

Local governments, rural hospitals, rural federally qualified health centers, rural behavioral health providers and other qualified applicants will be eligible to apply for funding in the spring.