Texas to receive the largest share of funding among all states in the nation to improve rural health care access

Austin, Texas – In a major announcement that promises sweeping improvements to rural health care across Texas, Governor Greg Abbott revealed that the state will receive more than $1.4 billion in federal funding over the next five years. The funding comes through the Rural Health Transformation Program, part of the One Big Beautiful Bill Act, and is designed to improve access, strengthen infrastructure, and promote long-term wellness for Texans living in rural areas.

“Rural Texans across the state will benefit from this historic federal investment. 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,” said Governor Abbott. “I thank President Trump, Secretary Kennedy, and Administrator Oz for their efforts to improve rural health care for Texans and all Americans.”

The federal support is being distributed by the Centers for Medicare & Medicaid Services (CMS), which notified the Texas Health and Human Services Commission (HHSC) that it would receive $281 million each year for five years—the highest amount awarded to any state in the nation.

Texas to Launch Rural Health Transformation Initiatives

The funding is the result of Texas’ application titled “Rural Texas Strong: Supporting Health and Wellness,” which was submitted to CMS in early November. The program is structured to support transformative health care strategies that address unique challenges facing rural communities across the state.

“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,” said HHSC Executive Commissioner Cecile Young. “Thanks to the input and partnership of our rural healthcare stakeholders, Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”

HHSC will manage the competitive grant process for distributing funds. Starting in the spring, eligible applicants such as local governments, rural hospitals, federally qualified health centers, behavioral health providers, and other community-based health organizations will be able to apply for funding. More information will be made available on the HHSC Grants webpage.

Key areas of investment under the program include:

• Providing grants to reduce chronic diseases through prevention, wellness, and nutrition efforts.

• Expanding access to patient-focused technology and digital health engagement.

• Using artificial intelligence and telehealth to fill care gaps in remote regions.

• Recruiting and retaining rural health care workers through scholarships, training, and relocation support.

• Enhancing cybersecurity to protect sensitive patient data.

• Modernizing medical equipment in rural hospitals and clinics.

With this historic funding, Texas is positioned to make significant progress toward ensuring that all residents—no matter where they live—can receive high-quality, accessible, and reliable health care. The Rural Health Transformation Program represents one of the largest steps the state has taken toward building a stronger, healthier Texas for future generations.