CMS creates Office of Rural Health Transformation, distributes funds

The Centers for Medicare & Medicaid Services will create an Office of Rural Health Transformation to oversee management of the Rural Health Transformation Program. It includes a Division of State Rural Engagement that will provide policy and guidance. The office will monitor states’ implementation of the program’s initiatives to ensure compliance. In addition, the agency announced all 50 states would receive funds from the $50 billion pool to assist in rural health care delivery. Beginning in 2026, states will receive first-year awards averaging $200 million to expand access to care, bolster the rural workforce, modernize facilities and technology, and support innovative payment and care delivery models. Fifty percent of the funding is distributed equally among states; the remaining 50% is allocated based on rural health needs and proposed impact. (CMS notice, 12/22/25)