Texas submits federal funding request for major rural health transformation initiative

Greg Abbott, Governor of Texas
Greg Abbott, Governor of Texas - Google
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Texas Governor Greg Abbott announced that the Texas Health and Human Services Commission (HHSC) has submitted an application to the Centers for Medicare & Medicaid Services (CMS) seeking federal support to improve rural health care across the state. The move is part of the Rural Health Transformation Program, which was established under the One Big Beautiful Bill Act signed by President Donald J. Trump. The program provides $50 billion in federal funding over five years to states that submit a one-time application.

“Rural health care is critical for the continued health and well-being of Texans across our great state,” said Governor Abbott. “To keep Texas thriving, we must strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives. Working with our federal partners, we will ensure Texans from every corner of the state have greater access to the quality health care services they need and deserve.”

“HHSC is committed to using this opportunity to modernize rural health care throughout Texas,” said HHS Executive Commissioner Cecile Erwin Young. “We look forward to working alongside communities to build a stronger rural health care system for the future.”

The HHSC’s application, titled “Rural Texas Strong: Supporting Health and Wellness,” seeks funding for several strategies aimed at improving rural health access. These include grants focused on reducing chronic diseases through prevention, wellness, and nutrition programs; investments in technology that engage patients in managing their own health; deployment of artificial intelligence and telehealth services; recruitment and retention efforts such as career development, scholarships, relocation payments, and training programs for rural healthcare workers; enhancements in cybersecurity measures; and equipment upgrades for rural hospitals and clinics.

In preparing its submission to CMS, HHSC collected input from more than 300 written comments via a public survey. Agency staff also held regional meetings with local officials and community leaders throughout Texas. Additionally, a public comment session hosted by HHSC in October gathered over 80 oral comments from participants.

CMS is expected to announce approved funding amounts by December 31. If approved, HHSC plans to use a competitive process for selecting recipients of these funds within rural communities.

Further information about the “Rural Texas Strong: Supporting Health and Wellness” application can be found on the HHS website.



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