800 326 9054The Health and Human Services Department on Monday announced state-by-state allocations of the $10 billion being distributed in the first year of the Rural Health Transformation Program, which was created by the One Big Beautiful Bill Act to offset cuts to Medicaid.
The allocations range from $147 million, which is New Jersey’s share, to $281 million, which Texas is getting.
The allocations were determined through a formula that distributed half the money equally between states and half based on factors such as rural population size, health and lifestyle, attempts to implement SNAP food restriction waivers, and nutrition programs in continuing medical education.
Texas aims to use its grant to add more than 1,000 rural health professionals, mitigate chronic disease, and reduce duplicative health costs through the program, according to the state’s project abstract.
Alaska and California follow in terms of total awards, receiving $272 million and $234 million, respectively, according to an Agri-Pulse analysis of HHS data.
Alaska’s funding will be used for maternal and child health, health care access, preventative and primary care services, strengthening its healthcare workforce, and improving technology.
California plans to create regional “hub and spoke” networks for critical access hospitals, clinics, birthing centers, and other providers, while also supporting more medical staff and improving rural health technology.
New Jersey sits at the bottom of the list when it comes to overall award amounts, receiving only $147 million. Slightly above it in terms of award amount are Connecticut and Rhode Island, which will receive $154.249, and $156.169, respectively.
The funding is being awarded by the Centers for Medicare and Medicaid Services (CMS), a subset of HHS.
According to a press release, states will “submit regular updates so CMS can track progress, identify proven approaches, support successful execution of their plans, and ensure strong oversight throughout the program.” CMS project officers will “convene program kickoff meetings and provide ongoing guidance and technical assistance during implementation,” it says.
States that President Donald Trump carried in 2024 will share $6.5 billion of the total funding for 2026, compared to about $3.5 billion going to states that favored Kamala Harris.
*Sourced from Agri-Pulse.