Texas seeks federal funds under new program to boost rural healthcare

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) to seek federal support aimed at improving rural health care in the state. This move is part of the Rural Health Transformation Program, established under the One Big Beautiful Bill Act signed into law by President Donald J. Trump. The program will distribute $50 billion in federal funding over five years to states whose applications are approved.

“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.”

HHS Executive Commissioner Cecile Erwin Young stated, “HHSC is committed to using this opportunity to modernize rural health care throughout Texas. 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,” outlines several strategies intended to improve access in rural areas. These include providing grants for prevention, wellness, and nutrition services; investing in technology for patient engagement; using artificial intelligence and telehealth services; supporting workforce recruitment through career development programs; enhancing cybersecurity protections; and upgrading equipment in rural facilities.

In preparation for its submission, HHSC reviewed more than 300 written comments from a public input survey. Staff also traveled across Texas for regional meetings with local officials and community leaders. A public comment session hosted by HHSC in October drew over 80 oral comments.

CMS plans to inform states about approved funding amounts by December 31. If awarded funds, HHSC intends to use a competitive process when selecting recipients within Texas.

More information on the application can be found at the HHS website.



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