(Video) How Can I Access the Rural Health Transformation Fund

Many rural healthcare providers don’t realize that $50 billion in federal funding is available, but accessing the Rural Health Transformation Fund isn’t as simple as applying for a grant. This program is distributed through states, tied to performance, and requires clinics to align with specific state priorities to qualify. In this video, you’ll learn how the funding really flows, who’s eligible, and what strategy you need to access Rural Health Transformation Fund dollars before they’re gone.

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Key Moments in this Video

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What is the Rural Health Transformation Fund and why does it matter?
Rural healthcare providers are under intense pressure from Medicaid cuts, workforce shortages, and razor-thin operating margins. For many clinics and hospitals, funding uncertainty makes long-term planning nearly impossible. The Rural Health Transformation Fund was created to address this exact problem. The program provides $50 billion over five years to help rural healthcare organizations remain viable through 2030. But this funding isn’t designed as a simple stopgap. It’s meant to support transformation — helping rural providers redesign care delivery so they can survive long after this funding ends. Understanding why the fund exists is the first step toward accessing it.
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How does the Rural Health Transformation Fund work at the state level?
A major point of confusion is where this money actually comes from. Providers do not apply directly to the federal government or CMS. Instead, the federal government distributes $10 billion per year to all 50 states. Half of that funding is split evenly, guaranteeing every state at least $100 million annually. The remaining funds are distributed based on discretion and performance, rewarding states that align with federal priorities and serve large rural populations. This means access to the Rural Health Transformation Fund depends heavily on state-level decision-making, not federal grant applications.
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Who qualifies for the Rural Health Transformation Fund?
Many organizations assume this funding is limited to traditional rural hospitals, but eligibility is far broader. The program includes a wide range of rural health facilities, not just inpatient providers. Eligible organizations may include Rural Health Clinics, Federally Qualified Health Centers, mental health providers, and opioid treatment programs. Even clinics located near urban areas may qualify if they serve rural populations. Eligibility is often determined by census tract data, making it essential to verify qualification before assuming the program doesn’t apply.
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What are the “strings attached” to Rural Health Transformation Fund money?
While the funding opportunity is significant, it comes with clear requirements. Every state submitted a Rural Health Transformation Plan outlining how it would use the funds and what outcomes it promised to deliver. To receive funding, providers must help the state meet those commitments. Generic funding requests — such as facility upgrades or general operating support — are frequently denied. Successful proposals align directly with state priorities like mobile clinics, telehealth expansion, workforce retention, or preventative care initiatives. Providers that position themselves as solutions to state-level goals are far more likely to be approved.
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What should rural providers do now to access the fund?
The most important step is shifting mindset. Instead of writing generic grants, providers need to become partners in their state’s strategy. Reviewing your state’s Spotlight Initiatives or Rural Health Transformation Plan is critical to understanding what outcomes matter most. From there, proposals should be tailored to directly support those goals — whether that’s launching a mobile screening program, expanding telehealth services, or addressing workforce shortages. Providers who clearly connect their proposal to state success help their state secure more federal funding, putting themselves at the front of the line.
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Frequently Asked Questions:

1: Is the Rural Health Transformation Fund a grant or a reimbursement program?

The Rural Health Transformation Fund is not a traditional grant. Funding is distributed through states and tied to specific outcomes, performance measures, and transformation goals rather than simple expense reimbursement.

2: Can small rural clinics compete with hospitals for this funding?

Yes. Small clinics can be competitive because states are looking for solutions, not size. Programs like mobile care, telehealth, mental health services, and workforce support often favor agile providers over large hospital systems.

3: Do rural providers need a grant writer to access the fund?

Not necessarily. What matters most is alignment with state priorities. Providers that clearly show how their proposal helps the state meet its federal commitments often outperform technically complex grant applications.

4: When will states decide who receives Rural Health Transformation Fund money?

Timelines vary by state, but funding decisions are typically made annually as states roll out initiatives tied to their approved transformation plans. Providers that engage early have a significant advantage.

5: What is the biggest mistake rural providers make with this funding?

The biggest mistake is submitting generic requests for survival funding. States approve proposals that help them deliver promised outcomes, not proposals focused solely on operational shortfalls.

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