Texas will receive more than $1.4 billion in federal funding over five years to improve rural health care, Governor Greg Abbott announced on December 29, 2025. The funds are part of the Rural Health Transformation Program, established under the One Big Beautiful Bill Act, which allocates $50 billion nationwide to support rural health initiatives.
Governor Abbott stated, “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. I thank President Trump, Secretary Kennedy, and Administrator Oz for their efforts to improve rural health care for Texans and all Americans.”
The Centers for Medicare & Medicaid Services (CMS) informed the Texas Health and Human Services Commission (HHSC) that Texas would receive $281 million annually—the largest amount awarded to any state in the program. Texas submitted its application titled “Rural Texas Strong: Supporting Health and Wellness” in early November.
HHS Executive Commissioner Cecile Young said, “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. 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.”
The HHSC plans a competitive process to allocate funds toward several initiatives:
– Grants aimed at reducing chronic disease through prevention, wellness programs, and nutrition services.
– Investments in technology designed to engage patients about their health.
– Expansion of artificial intelligence tools and telehealth services.
– Recruitment strategies such as career development opportunities, scholarships, relocation payments, and training programs for rural healthcare workers.
– Upgrades to cybersecurity measures protecting patient data.
– Equipment improvements in rural hospitals and clinics.
Local governments as well as qualified healthcare providers can apply for funding starting in spring 2026. More details will be available on the HHSC Grants webpage.
Governor Abbott leads the executive office of Texas from Austin’s State Insurance Building. His administration focuses on economic development—including job growth—and supports various community initiatives across Texas (official website). The governor was named among TIME’s 100 Most Influential People in 2024 (official website).
For further information about support for rural hospitals or other state-led initiatives related to healthcare or economic development by Governor Abbott’s office (official website), visit their official resources online.
