Texas is set to receive more than $1.4 billion in federal funding over five years to improve health care in rural areas across the state, Governor Greg Abbott announced. The funds come from the Rural Health Transformation Program, part of the One Big Beautiful Bill Act, which will allocate $50 billion nationally over five years.
“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 notified the Texas Health and Human Services Commission (HHSC) that Texas would receive $281 million annually for five years—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.
“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,” said HHS Executive Commissioner Cecile Young. “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.”
The HHSC plans a competitive process to allocate funds toward grants aimed at reducing chronic disease through prevention programs, wellness initiatives, consumer-facing technology investments, artificial intelligence deployment, telehealth services expansion, recruitment of rural healthcare workers via scholarships or relocation payments, cybersecurity improvements, and equipment upgrades in hospitals and clinics.
Eligible applicants include local governments, rural hospitals, federally qualified health centers located in rural areas, behavioral health providers serving these regions, among others. Funding applications are expected to open in spring with further details available on the HHSC Grants webpage.
Governor Abbott leads the executive office for Texas’ state government with a focus on economic development—including job growth—and community initiatives such as healthcare improvement. Since his election in 2014 he has overseen statewide services from offices based at Austin’s State Insurance Building and led efforts that have earned national recognition.
More information about support for rural hospitals can be found on the HHSC website.
