Analysis | Sep 17, 2025

CMS Releases Rural Health Transformation Funding Opportunity

Anne Karl, Avi Herring, Liz Osius, and Jacob Rains, Manatt Health

On September 15, the Centers for Medicare & Medicaid Services (CMS) released a Notice of Funding Opportunity (NOFO) for states to apply for funds under the $50 billion Rural Health Transformation Program, established by H.R.1. This analysis summarizes the NOFO including the allowable uses of funding, application components, and the distribution and scoring methodology. Administered by CMS, the program will distribute $10 billion annually from 2026 through 2030; 50% of those payments will be distributed equally across states with an approved Rural Health Transformation Plan, while the remaining half will be distributed to states at the discretion of CMS. The fund presents an opportunity for states to secure federal funding to support investments in rural healthcare.