Today, the Centers for Medicare and Medicaid Services (CMS) announced that applications for the Rural Health Transformation Program (RHTP) are now open for states to apply. Enacted as part of the One Big Beautiful Bill Act, the RHTP is a $50 billion program. Funding is to be allocated to approved states over five years, with $10 billion available each year beginning in federal FY26 (Oct. 1 – Sept. 30, 2026).
Half of the funding will be evenly distributed to all states with an approved application. The remainder will be awarded to approved states based on individual state metrics and applications that reflect the greatest potential for and scale of impact on the health of rural communities. Applications must come from a state government agency or office and include a letter of endorsement signed by the governor.
There are several key considerations to keep in mind regarding the RHTP:
Application deadline: States have until Nov. 5 to apply, and this will be a one-time application. CMS will announce approved states by Dec. 31 and begin disbursing funds in 2026.
Program goals: The RHTP outlines five strategic goals rooted in the statutorily approved uses of funds:
Make rural America healthy again: Support rural health innovations and new access points to promote preventive health and address root causes of diseases.
Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability.
Workforce development: Attract and retain a highly skilled health care workforce by strengthening recruitment and retention of health care providers in rural communities.
Innovative care: Spark the growth of innovative care models to improve health outcomes, coordinate care and promote flexible care arrangements.
Tech innovation: Foster use of innovative technologies that promote efficient care delivery, data security and access to digital health tools by rural facilities, providers and patients.
States will receive and manage funds: Unlike previous federal relief programs, the RHTP does not provide direct payments to rural providers and clinics. Instead, states must apply for and manage the funds, with CMS approval.
CCBHC-specific considerations: The RHTP specifically directs applying states to provide a current list of Certified Community Behavioral Health Clinic (CCBHC) entities within their state as of Sept. 1, 2025, every active site of care associated with each CCBHC entity, and the address of every active site of care. For applications without this information, CMS will estimate the number of CCBHCs in the state using the most recent list of CCBHCs as maintained by the Substance Abuse and Mental Health Services Administration (SAMHSA), the list of CCBHCs supported through the Section 223 CCBHC Medicaid Demonstration and through SAMHSA-administered CCBHC Expansion (CCBHC-E) Grants, and State-certified CCBHCs listed on state government websites for states that use other Medicaid authority to designate CCBHCs (such as Medicaid State Plan rehabilitation authority). The addresses of these CCBHCs sites, as available, will be compared to rural area designations using the current HRSA definition of rurality to determine whether a CCBHC is in a rural area.
CMS will host two informational webinars on the RHTP (registration required): this Friday, Sept. 19, 3 p.m. ET and Thursday, Sept. 25, 3 p.m. ET.. The National Council for Mental Wellbeing will also host an informational webinar on the RHTP following these CMS sessions, with a date to be determined.
We will continue to provide updates and information related to the RHTP as they become available. If you have any questions regarding the program or any of the other information detailed here, please reach out to us at Policy@TheNationalCouncil.org.
@National Council for Mental Wellbeing
https://www.cms.gov/newsroom/press-releases/cms-launches-landmark-50-billion-rural-health-transformation-program?mkt_tok=NzczLU1KRi0zNzkAAAGc7gu4c7V16LFyUqJpcxENoD92lzRTh26n6SVNytlkVPuU9X5fXUJt-2eYAnQv1pL2JVz1YjPt0N-J9jEjP_0UDMBAN8kaM-k3S2dFcNqfDBzlow
