Trump Showcases $10B Rural Health Fund as States Begin Awards
President Donald Trump is participating in a rural health roundtable Friday as the first money begins to flow from the Rural Health Transformation Program, a $50 billion, five‑year fund created by last year’s One Big Beautiful Bill Act to shore up rural care after deep federal cuts to rural hospitals. CMS Administrator Dr. Mehmet Oz said states will share $10 billion for 2026, with an average award of about $200 million, and that CMS has assigned project officers to oversee how each state spends its grant. Every state applied, but funding will not be distributed equally, and critics warn the administration could threaten to claw back money from states whose policies clash with Trump’s agenda. Oz framed the program as a way to "push states to be creative" in redesigning rural health systems, even as some analysts question whether the initiative backfills earlier cuts or uses federal leverage to enforce political litmus tests. The roundtable gives the White House a platform to claim credit for new rural spending at a time when many small hospitals remain on the brink financially.
📌 Key Facts
- The Rural Health Transformation Program was created by the One Big Beautiful Bill Act and totals $50 billion over five years.
- Officials say states will share $10 billion in 2026, with an average state award of roughly $200 million.
- CMS Administrator Dr. Mehmet Oz said CMS will assign project officers to each state and that the fund is intended to spur 'creative' rural health reforms, while critics fear funds could be conditioned on political alignment with the administration.
📊 Relevant Data
In 2020, the rural U.S. population was approximately 75% White (non-Hispanic), 8% Black, 9% Hispanic or Latino, and 2% Native American or Alaska Native.
Who lives in rural America? (Part 1) — Center on Rural Innovation
In 2021, Black Americans in rural, low-income Southern counties had a life expectancy of 68.0 years, compared to 71.1 years for White Americans in low-income rural Appalachia and Lower Mississippi Valley, and 84.0 years for Asian Americans overall, highlighting significant racial and geographic disparities.
The Lancet: Deeply entrenched racial and geographic health disparities in the USA have increased over the last two decades—as life expectancy gap widens to 20 years — Institute for Health Metrics and Evaluation
Between 2005 and 2023, 146 rural hospitals in the U.S. closed or converted to non-acute care facilities, contributing to reduced access to care in rural communities.
146 rural hospitals closed or stopped providing inpatient services between 2005 and 2023 — USDA Economic Research Service
Rural areas have a 20% higher age-adjusted death rate compared to urban areas as of 2019, with higher rates of chronic conditions like heart disease (44.9% excess deaths) and unintentional injuries (64.1% excess).
Rural Health Disparities Overview — Rural Health Information Hub
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