Governor Greg Abbott announced that the Texas Health and Human Services Commission (HHSC) submitted an application to the Centers for Medicare & Medicaid Services (CMS) to strengthen rural health care. $50 billion in federal funding will be awarded to approved states over five years through the Rural Health Transformation Program. States must submit a one-time application to CMS to be eligible.
HHSC reviewed over 350 comments and participated in regional meetings regarding the application to CMS.
CMS has announced that all 50 states have submitted application. States that meet the following requirements and have approved applications will receive baseline funding—representing 50% of total available program funds:
- Make rural America healthy again: Support rural health innovations and promote preventive care.
- Sustainable access: Ensure rural providers can become long-term access points for care by improving efficiency and sustainability.
- Workforce development: Build and retain a strong rural health care workforce.
- Innovative care: Test new models of care delivery to improve rural health outcomes and lower the cost of care.
- Tech innovation: Expand use of technologies that promote access and efficiency in rural settings.
The remaining 50% of program funds will be awarded to applications that met baseline criteria and have undergone a more intensive review to determine alignment with program goals.
The HHSC application, “Rural Texas Strong: Supporting Health and Wellness,” requests federal funding for the following strategies:
- Offering grants to reduce chronic disease through prevention, wellness, and nutrition services.
- Investing in consumer-facing technology to engage with patients on improving their health.
- Deploying artificial intelligence and telehealth services to bridge service gaps.
- Recruiting and retaining rural health care workers through career development, scholarships, relocation payments, and training programs.
- Improving cybersecurity defenses to protect patient data.
- Upgrading equipment in rural hospitals and clinics.
States are expected to be notified by December 31 of approved funding amounts by CMS.
More information on the “Rural Texas Strong: Supporting Health and Wellness” application can be found on the HHS website. The Governor’s full press release can be found here. The full CMS press release can be found here.


