Texas Governor Greg Abbott has announced that the state will receive more than $1.4 billion in federal funding over five years to improve rural health care. The investment comes through the Rural Health Transformation Program, which is part of the One Big Beautiful Bill Act allocating $50 billion nationwide for rural health improvements.
“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 Centers for Medicare & Medicaid Services (CMS) notified the Texas Health and Human Services Commission (HHSC) about the award. Texas will receive $281 million annually—the largest amount granted to any state under this program.
Texas submitted its application titled “Rural Texas Strong: Supporting Health and Wellness” in early November. HHS Executive Commissioner Cecile Young stated, “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. 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 plans to use a competitive process to distribute funds supporting grants aimed at reducing chronic disease, investing in technology for patient engagement, deploying artificial intelligence and telehealth services, recruiting healthcare workers with career development incentives, improving cybersecurity protections, and upgrading equipment at rural facilities.
Eligible applicants such as local governments, rural hospitals, federally qualified health centers, behavioral health providers, and others can apply for funding starting in spring 2026. Additional information will be made available on HHSC’s grants webpage.
Governor Abbott leads the executive office of Texas with a focus on economic development initiatives including job creation, education enhancement, border security measures like Operation Lone Star, as well as supporting community projects across the state.
He was elected governor in 2014 and operates his office out of Austin’s State Insurance Building. Under his leadership, Texas has achieved national recognition in job growth and record employment levels according to state records. In 2024, he was listed among TIME’s 100 Most Influential People.
More details about ongoing support for rural hospitals can be found on the HHSC website.
