Texas has moved forward with an effort to improve rural health care by submitting an application for federal funding under the Rural Health Transformation Program. Governor Greg Abbott announced that the Texas Health and Human Services Commission (HHSC) sent its proposal to the Centers for Medicare & Medicaid Services (CMS), aiming to secure a portion of $50 billion in federal funds available over five years.
The Rural Health Transformation Program was established as part of the One Big Beautiful Bill Act, which was signed into law by President Donald J. Trump. States seeking funding must submit a one-time application to CMS.
“Rural health care is critical for the continued health and well-being of Texans across our great state,” said Governor Abbott. “To keep Texas thriving, we must strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives. Working with our federal partners, we will ensure Texans from every corner of the state have greater access to the quality health care services they need and deserve.”
“HHSC is committed to using this opportunity to modernize rural health care throughout Texas,” said HHS Executive Commissioner Cecile Erwin Young. “We look forward to working alongside communities to build a stronger rural health care system for the future.”
The HHSC’s application, titled “Rural Texas Strong: Supporting Health and Wellness,” outlines several strategies including grants aimed at preventing chronic diseases, investments in technology that connects patients with their providers, deployment of artificial intelligence and telehealth services, workforce recruitment and retention programs such as scholarships and relocation payments, cybersecurity improvements for patient data protection, and upgrades to equipment in rural medical facilities.
In preparing its application, HHSC collected input from over 300 written comments submitted through a public survey. Staff also traveled across Texas for regional meetings with local officials and community leaders. A public comment session held in October gathered more than 80 oral comments from participants.
CMS is expected to announce approved funding amounts on December 31. If awarded funds, HHSC plans to use a competitive process when selecting recipients so that benefits reach rural Texans effectively.
More information about the “Rural Texas Strong: Supporting Health and Wellness” application can be found on the HHS website.



