CMS Unveils $50 Billion Rural Health Transformation Program
The Centers for Medicare & Medicaid Services (CMS) announced the launch of the $50 billion Rural Health Transformation Program, a sweeping initiative created under the Working Families Tax Cuts Act. This program represents the largest federal investment ever dedicated to strengthening health care across rural America, with direct implications for providers, patients, and health systems.
The funding is designed to support state-driven reforms aimed at transforming fragile rural health infrastructure into sustainable systems that expand access, enhance care quality, and improve patient outcomes.
CMS outlined 5 strategic priorities to guide state applications:
- Make Rural America Healthy Again – Support innovations and new access points to promote preventive care and address underlying drivers of chronic disease.
- Sustainable Access – Improve provider efficiency and ensure long-term access to local care.
- Workforce Development – Strengthen recruitment and retention of skilled providers in rural areas, addressing long-standing workforce shortages.
- Innovative Care – Encourage new care models to improve coordination, outcomes, and flexible delivery approaches.
- Tech Innovation – Expand digital health tools, data security, and telemedicine capacity to bridge gaps in care access.
Funding will be distributed beginning in federal fiscal year 2026, with $10 billion allocated annually over 5 years. Half of the funds will be divided evenly among states with approved applications, while the other half will be awarded based on state proposals demonstrating the greatest potential to improve rural health outcomes at scale.
The application deadline is November 5, 2025, with CMS set to announce awardees by December 31, 2025. States must submit applications during this period to be eligible.
For oncology leaders and payers, the Rural Health Transformation Program carries several important implications. State-driven innovations have the potential to influence oncology clinical pathways by embedding new models for cancer screening, treatment, and survivorship care that are specifically designed to meet the needs of rural populations. At the same time, initiatives to attract and retain oncology specialists could help alleviate persistent provider shortages and significantly expand patient access to critical cancer services.
The program’s emphasis on technology and telehealth may also accelerate the adoption of tele-oncology platforms, opening new avenues for patients to connect with specialists and participate in multidisciplinary tumor boards regardless of geographic barriers. Finally, by focusing on long-term sustainability and stability of rural providers, the program offers a path to reducing disruptions in oncology care continuity, ensuring that rural patients can rely on consistent, high-quality cancer treatment closer to home.
Reference
CMS launches landmark $50 billion Rural Health Transformation Program. Centers for Medicare & Medicaid Services. September 15, 2025. Accessed September 29, 2025. https://www.cms.gov/newsroom/press-releases/cms-launches-landmark-50-billion-rural-health-transformation-program
