SALEM/OLYMPIA – Both Oregon and Washington have submitted applications to the federal government for the $50 billion Rural Health Transformation Program, which is set to award funds to strengthen rural health care.
The program, established as part U.S. House Resolution 1 known as the “One Big Beautiful Bill”, provides $10 billion annually from fiscal years 2026 through 2030 to improve rural health care access, workforce, and technology. Fifty percent of the funding will be distributed equally among all states who submit an approved application, with the remaining 50% to be allocated through the Centers for Medicare and Medicaid Services (CMS).
Oregon Health Authority (OHA) submitted an application detailing a two-phase initiative:
- Phase 1 (2026–2027): Immediate “catalyst” grants for shovel-ready projects that expand access, improve local infrastructure, and strengthen emergency and maternity care.
- Phase 2 (2028–2031): Centers on larger, regional initiatives focused on long-term sustainability, shared infrastructure and cross-sector collaboration.
The OHA proposal also includes a dedicated Tribal initialtive, which will provide direct funding for Tribal-led strategies that strengthen sovereignty, workforce development, and culturally grounded care.
“Informed by the insight of our statewide rural partners, OHA developed a robust plan for transforming rural health in Oregon,” said OHA Director of Health Policy and Analytics Clare Pierce-Wrobel. “As a state with one-third of its residents living in rural and frontier communities, we believe our proposed initiatives meet or exceed the expectations of this funding opportunity—and expect the federal government will recognize the importance of this investment for Oregon’s rural communities when making awards later this year.”
Washington’s proposal is a five-year plan to invest $1 billion into rural health care, supporting hospital infrastructure with an emphasis on technology improvements along with support for maternal health care and new facilities.
Washington Gov. Bob Ferguson has also committed 10% of any funding to support Indian health care providers.
“Rural Washington boasts strong communities, robust agriculture and some of the most beautiful landscapes in the world,” Gov. Ferguson said. “In order to sustain this way of life, we must support a strong rural health care system. Our bipartisan plan will help modernize and strengthen this crucial resource.”
Ferguson is working to reschedule a meeting with CMS Administrator Mehmet Oz after a previously scheduled meeting was canceled due to the federal government shutdown.
CMS will approve or deny applications by Dec. 31.