Brief explores potential impact of $50 billion rural health fund

Much uncertainty exists regarding how the Centers for Medicare & Medicaid Services might distribute the $50 billion rural health transformation fund included in the President’s signature domestic policy law, states a KFF brief. Lawmakers intended for the fund to soften some of the law’s effects of more than $1 trillion in cuts to Medicaid and other health programs. It is unclear what share will go to the nearly 1,800 hospitals in rural areas, or whether other providers or initiatives will receive funds. The law also does not stipulate whether CMS will direct funds to the 44% of rural hospitals with negative margins. It is uncertain to what extent the CMS administrator will be able to influence how states use their funds before approving applications. (KFF brief, 7/16/25)