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Morning Briefing

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Monday, Jan 5 2026

Full Issue

All 50 States Receive Large Chunks Of $50B Rural Health Fund, With Caveats

Texas received the most ($2.8 million for fiscal year 2026), while New Jersey received the least ($1.5 million for 2026). Even so, the funds can be clawed back if states don't implement changes according to Trump administration priorities. And some states, such as Vermont, worry that the funds won't make up for what they're losing in Medicaid funding cuts from the Big Beautiful Bill.

Texas and Alaska will receive the largest amount of funding from the $50 billion Rural Health Transformation Program in fiscal year 2026, while New Jersey and Connecticut will see the least, the Centers for Medicare & Medicaid Services (CMS) announced last Monday. (Muoio, 12/29)

See the complete list of 50 states. (12/29)

Since the funding will be recalculated annually over the life of the five-year program, CMS Administrator Mehmet Oz reportedly said in a call with reporters that the administration could 鈥渃law back鈥 funds if a state doesn鈥檛 enact policies it committed to in its application. Searing suggested that was a possibility in November, telling TPM that CMS 鈥渃an do pretty much what they want and the states can鈥檛 complain about it.鈥 (Jones, 1/3)

While many are cheering Monday's funding announcement, other health organizations are worried about simultaneous federal Medicaid cuts. (Cutler, 12/30)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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