By Shelby Shank
Field Editor
Federal dollars are set to reshape rural health care across Texas, bringing new resources to communities that have long faced challenges accessing care.
Gov. Greg Abbott announced Texas will receive more than $1.4 billion in federal funding over the next five years to improve rural health care throughout the state.
“Rural Texans across the state will benefit from this historic federal investment. We will strengthen our rural hospitals, expand access to critical mental and physical health care and help reduce chronic disease through wellness and nutrition initiatives,” Abbott said.
The funding will go to the Texas Health and Human Services Commission (HHSC) from the Centers for Medicare & Medicaid Services (CMS) through the Rural Health Transformation Program as part of the One Big Beautiful Bill Act.
The program is allocating $50 billion to states over five years to help transform rural health care. Texas will receive $281 million each year, the largest allocation awarded to any state in the program.
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 plans to use its grant to add more than 1,000 rural health professionals, mitigate chronic disease and reduce duplicative health care costs.
“We are grateful for the federal government’s investment in increasing access to preventive and lifesaving care for people who live in rural communities across the state,” HHSC Executive Commissioner Cecile Young said. “Thanks to the input and partnership of our rural healthcare stakeholders, Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”
HHSC will use a competitive process to distribute funds for a variety of initiatives aimed at closing gaps in rural health care. Priority areas include grants to reduce chronic disease through prevention, wellness and nutrition services, investments in consumer-facing technology to help patients better engage with their health and deployment of artificial intelligence and telehealth tools to expand access to care in remote areas.
Additional funding will support efforts to recruit and retain rural health care workers through scholarships, training programs, career development opportunities and relocation incentives.
Grants will also be available to improve cybersecurity defenses, protecting sensitive patient data and to upgrade equipment in rural hospitals and clinics.
States participating in the program will submit regular updates to CMS, allowing federal officials to track progress, identify effective strategies and provide technical assistance throughout implementation.
Local governments, rural hospitals, rural federally qualified health centers, rural behavioral health providers and other qualified applicants will be eligible to apply for funding in the spring.
More information will be available on the HHSC Grants webpage.