The Rural Health Transformation (RHT) Program is a major new federal initiative offering $50 billion over five years (2026–2030) to strengthen health care in rural America. It helps states redesign how health care is delivered in rural areas. This can mean better technology, new care models, workforce growth, and prevention programs.
- The program focuses on five main goals:
- Improve health outcomes and preventive care
- Make access to care more sustainable for rural providers
- Build and keep a strong rural health workforce
- Support new or flexible care models
- Boost the use of telehealth, data, and technology in rural health systems
Who is eligible for the Rural Health Transformation Program?
- Only U.S. states can receive RHT funding.
- The District of Columbia and U.S. territories are not eligible.
- Within states, local health providers, hospitals, clinics, and nonprofits can be included as partners in the state’s plan.
Who can apply for the Rural Health Transformation Program?
- States must submit applications through a Notice of Funding Opportunity (NOFO) issued by CMS.
- The NOFO was released on September 15, 2025.
- States can include regional or local partners such as hospitals, provider groups, nonprofits, and public health agencies.
- Many states are already collecting input from rural leaders to strengthen their applications.
What are the conditions of the Rural Health Transformation Program?
- Each state must choose at least three of the approved “uses of funds” outlined by CMS.
- Administrative expenses (direct + indirect) are limited to 10% of a state’s total award.
- States must submit yearly reports showing how funds were used and what results were achieved. Misuse of funds can lead to paybacks.
- Infrastructure or capital improvements are allowed, but only when tied directly to program goals like access or sustainability.
- Each application must include a Rural Health Transformation Plan explaining how the state will:
- Improve access and health outcomes in rural communities
- Use new technology and data tools to deliver care
- Strengthen partnerships among rural hospitals and health providers
- Recruit and retain skilled health workers
- Create strategies for long-term financial health of rural hospitals
- Identify risks facing rural hospitals and how to prevent closures
How much funding is available?
- Total funding: $50 billion over five years.
- About $10 billion per year will be distributed from FY 2026 to 2030.
- Each year’s funding is divided into two parts:
- Baseline funding: split equally among all participating states.
- Workload (competitive) funding: awarded based on need, rural population, and quality of each state’s plan.
- States with more rural hospitals or greater health challenges could receive a larger share.
Are mobile medical units eligible for this funding?
- The program mentions transportation vehicles for services as an example of eligible capital improvements.
- This means mobile medical units could qualify if they directly support the state’s care goals.
- However, vehicle purchases fall into a gray area. Funding for new construction or large capital projects is limited to 20% of a state’s total award per period.
- To qualify, a mobile unit must be shown as part of a long-term strategy that expands access and connects with the state’s broader health system—not as a one-off project.
Deadline dates to know
- NOFO release date: September 15, 2025
- Letter of Intent (optional): September 30, 2025
- Application deadline: November 5, 2025
- Awards announced: December 31, 2025
- Funding period: Fiscal years 2026 through 2030
Ready to apply for the Rural Health Transformation Program?
The Rural Health Transformation Program is one of the biggest opportunities in decades to improve care in rural America. It gives states the resources to modernize health systems, support new care models, and close the gap in rural access.
If you want to learn how mobile medical units or other solutions can fit into this funding, talk with our mobility experts. Click the button below to connect with us today.
Disclaimer:
AVAN Mobility does not provide this funding and cannot assist with applications. This information is shared to help raise awareness and encourage support for funding or grant opportunities that may assist your program.
