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How your state plans to use millions in rural health funding

From drones to telehealth: How your state plans to use millions in rural health funding

The Trump administration has announced the first round of rural health care awards from a $50 billion fund, with half of the funds distributed at the administration’s discretion based on ruralness, state performance and policy commitments.

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Updated: 6:47 PM EST Dec 29, 2025

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The Trump administration on Monday rolled out the first round of funding from a new $50 billion federal initiative aimed at strengthening rural health care, with officials making clear that what states receive in future years could rise or fall based on results. The average award amount was $200 million per state, within a range of $147 million to $281 million, according to the Centers for Medicare and Medicaid Services.The funding was created under the “One Big Beautiful Bill,” which set aside $10 billion a year for five years to support rural hospitals and expand access to care. Lawmakers, including moderate Republicans, pushed for the fund amid concerns that Medicaid cuts in the law could force hospital closures and leave millions of rural residents without access to care.Half of the $50 billion fund is distributed equally among all states, giving each a baseline level of support.The remaining half is discretionary and based on a variety of factors, meaning the administration can adjust future funding levels. One factor is how states follow through on the plans they submitted as part of the application process. Those applications outline how states say they will improve rural health care, including keeping hospitals open, expanding telehealth services, and recruiting doctors and nurses.READ YOUR STATE’S PROPOSAL ABSTRACT HERESome of the proposals submitted by states are notably ambitious. Alaska and North Dakota say they want to use funding to expand delivery of prescriptions, lab samples and medical equipment by drone in remote areas. Alabama’s plan includes creating, “digital obstetric regionalization and telerobotic ultrasound,” to expand access to maternal care. And several states are proposing mobile ambulance and community paramedicine programs that would allow first responders to treat certain patients at home rather than automatically transporting them to emergency rooms.Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, said the investment is meant to drive long-term changes in how rural health systems operate.“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,” Oz said. Administration officials said states will be re-scored every year based on progress reports, performance metrics, and whether they meet policy and implementation benchmarks laid out in their proposals. Oz said the administration is not looking to take back money that has already been paid out, but does have the authority to adjust funding going forward.Officials say other factors used to determine discretionary funding include how rural a state is and whether it adopts certain “Make America Healthy Again” policies, such as reinstating presidential fitness tests in schools or restricting purchases of soda and candy using federal food-assistance benefits. StateFY26 Award Amount Alabama$203,404,327 Alaska$272,174,856 Arizona$166,988,956 Arkansas$208,779,396 California$233,639,308 Colorado$200,105,604 Connecticut$154,249,106 Delaware$157,394,964 Florida$209,938,195 Georgia$218,862,170 Hawaii$188,892,440 Idaho$185,974,368 Illinois$193,418,216 Indiana$206,927,897 Iowa$209,040,064 Kansas$221,898,008 Kentucky$212,905,591 Louisiana$208,374,448 Maine$190,008,051 Maryland$168,180,838 Massachusetts$162,005,238 Michigan$173,128,201 Minnesota$193,090,618 Mississippi$205,907,220 Missouri$216,276,818 Montana$233,509,359 Nebraska$218,529,075 Nevada$179,931,608 New Hampshire$204,016,550 New Jersey$147,250,806 New Mexico$211,484,741 New York$212,058,208 North Carolina$213,008,356 North Dakota$198,936,970 Ohio$202,030,262 Oklahoma$223,476,949 Oregon$197,271,578 Pennsylvania$193,294,054 Rhode Island$156,169,931 South Carolina$200,030,252 South Dakota$189,477,607 Tennessee$206,888,882 Texas$281,319,361 Utah$195,743,566 Vermont$195,053,740 Virginia$189,544,888 Washington$181,257,515 West Virginia$199,476,099 Wisconsin$203,670,005 Wyoming$205,004,743More stories from the Washington news Bureau:

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The Trump administration on Monday rolled out the first round of funding from a new $50 billion federal initiative aimed at strengthening rural health care, with officials making clear that what states receive in future years could rise or fall based on results.

The average award amount was $200 million per state, within a range of $147 million to $281 million, according to the Centers for Medicare and Medicaid Services.

The funding was created under the “One Big Beautiful Bill,” which set aside $10 billion a year for five years to support rural hospitals and expand access to care. Lawmakers, including moderate Republicans, pushed for the fund amid concerns that Medicaid cuts in the law could force hospital closures and leave millions of rural residents without access to care.

Half of the $50 billion fund is distributed equally among all states, giving each a baseline level of support.

The remaining half is discretionary and based on a variety of factors, meaning the administration can adjust future funding levels.

One factor is how states follow through on the plans they submitted as part of the application process. Those applications outline how states say they will improve rural health care, including keeping hospitals open, expanding telehealth services, and recruiting doctors and nurses.

READ YOUR STATE’S PROPOSAL ABSTRACT HERE

Some of the proposals submitted by states are notably ambitious. Alaska and North Dakota say they want to use funding to expand delivery of prescriptions, lab samples and medical equipment by drone in remote areas. Alabama’s plan includes creating, “digital obstetric regionalization and telerobotic ultrasound,” to expand access to maternal care. And several states are proposing mobile ambulance and community paramedicine programs that would allow first responders to treat certain patients at home rather than automatically transporting them to emergency rooms.

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Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, said the investment is meant to drive long-term changes in how rural health systems operate.

“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,” Oz said.

Administration officials said states will be re-scored every year based on progress reports, performance metrics, and whether they meet policy and implementation benchmarks laid out in their proposals.

Oz said the administration is not looking to take back money that has already been paid out, but does have the authority to adjust funding going forward.

Officials say other factors used to determine discretionary funding include how rural a state is and whether it adopts certain “Make America Healthy Again” policies, such as reinstating presidential fitness tests in schools or restricting purchases of soda and candy using federal food-assistance benefits.

State

FY26 Award Amount

Alabama

$203,404,327

Alaska

$272,174,856

Arizona

$166,988,956

Arkansas

$208,779,396

California

$233,639,308

Colorado

$200,105,604

Connecticut

$154,249,106

Delaware

$157,394,964

Florida

$209,938,195

Georgia

$218,862,170

Hawaii

$188,892,440

Idaho

$185,974,368

Illinois

$193,418,216

Indiana

$206,927,897

Iowa

$209,040,064

Kansas

$221,898,008

Kentucky

$212,905,591

Louisiana

$208,374,448

Maine

$190,008,051

Maryland

$168,180,838

Massachusetts

$162,005,238

Michigan

$173,128,201

Minnesota

$193,090,618

Mississippi

$205,907,220

Missouri

$216,276,818

Montana

$233,509,359

Nebraska

$218,529,075

Nevada

$179,931,608

New Hampshire

$204,016,550

New Jersey

$147,250,806

New Mexico

$211,484,741

New York

$212,058,208

North Carolina

$213,008,356

North Dakota

$198,936,970

Ohio

$202,030,262

Oklahoma

$223,476,949

Oregon

$197,271,578

Pennsylvania

$193,294,054

Rhode Island

$156,169,931

South Carolina

$200,030,252

South Dakota

$189,477,607

Tennessee

$206,888,882

Texas

$281,319,361

Utah

$195,743,566

Vermont

$195,053,740

Virginia

$189,544,888

Washington

$181,257,515

West Virginia

$199,476,099

Wisconsin

$203,670,005

Wyoming

$205,004,743

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