Trump Administration Awards $200 Million To Support North Carolina’s Rural Hospitals
This week, the Center for Medicare & Medicaid Services (CMS) announced that all 50 states will receive awards under the Rural Health Transformation Program, a $50 billion initiatives created by President Trump’s Working Families Tax Cut legislation. In 2026, states will receive first-year awards averaging around $200 million, which funding programs that expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home.
In a statement following the announcement, Senator Budd said: “North Carolina has the second-largest rural population in America, home to 7.6% of our nation’s rural residents. Today’s announcement by the Centers for Medicare & Medicaid Services (CMS) of $213 million from the Rural Health Transformation Program will greatly benefit patients across our state. While I was proud to support the inclusion of this funding in the Working Families Tax Cut Act, it is unfortunate that the State’s application was not appropriately coordinated with federal officials and did not request funding levels that more accurately correlate with our significant rural population.”
In the first round of funding, North Carolina will over the $213,008,356. About this funding, Senate Leader Phil Berger said, “ANOTHER BIG WIN! Thank you President Trump and our NC Congressional Delegation for securing over $200 million to bolster rural healthcare across North Carolina.”
Awardees and Funding Amounts
The Rural Health Transformation Program’s $50 billion in funds will be allocated to approved states over five years, with $10 billion available each year from 2026 through 2030. As directed by Public Law 119-21:
50% of the funding is distributed equally among all approved states. This provides states with a strong foundation to begin implementing their Rural Health Transformation Plans; and
50% is allocated based on a variety of factors. As described in the Notice of Funding Opportunity, those factors include individual state metrics around rurality and a state’s rural health system, current or proposed state policy actions that enhance access and quality of care in rural communities, and application initiatives or activities that reflect the greatest potential for, and scale of, impact on the health of rural communities. All scoring factors are outlined further in the Notice of Funding Opportunity.
