BALTIMORE—Washington state has secured $181.3 million in federal funding for 2026 as part of a sweeping $50 billion initiative to bolster rural health care nationwide, the Centers for Medicare & Medicaid Services announced Monday, December 29.
The award marks the first installment for Washington under the Rural Health Transformation Program, which will distribute $10 billion annually to all 50 states through 2030. Officials said the program aims to expand access to care, build up the rural workforce, upgrade facilities and technology, and foster innovative care models in underserved areas.
Washington plans to invest a total of $1 billion over the five-year span, focusing on primary and specialty care, hospitals, workforce training, technology, and chronic disease management. State leaders will collaborate with partners including the Department of Health, the State Office of Rural Health, the Department of Social and Health Services, The Rural Collaborative, the Rural Health Redesign Center, the Washington State Hospital Association, the University of Washington, Washington State University, Project Extension for Community Health Outcomes, and Area Agencies on Aging.
The funds will support a range of efforts to create a more resilient rural health system. These include boosting training for Tribal providers, nurses, and long-term care workers; advancing artificial intelligence and cybersecurity in health care; and aiding payment reforms for rural hospitals and behavioral health clinics. Investments will also expand existing programs like Project Extension for Community Health Outcomes and Washington State University’s rural provider training, while providing direct aid for technology upgrades, provider recruitment, and infrastructure.
State officials emphasized that the spending prioritizes sustainable projects to outlast the program’s timeline, such as enhancing disease prevention, managing care in community settings, supporting Native families’ health, increasing technology adoption, growing the rural workforce, and strengthening behavioral health services.
The broader Rural Health Transformation Program stems from President Donald J. Trump’s Working Families Tax Cuts legislation, signed into law on July 4, 2025, as Public Law 119-21. That measure, formally known in some contexts as the One Big Beautiful Bill, includes provisions for major investments in health care alongside tax reforms. CMS described the initiative as a historic commitment to rural America’s 60 million residents, putting local hospitals, clinics, and providers in charge of tailored improvements.
Health and Human Services Secretary Robert F. Kennedy, Jr., praised the program for ensuring rural Americans get quality care without bureaucratic hurdles.
“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Kennedy said. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ healthcare. Thanks to President Trump’s leadership, rural Americans will now have affordable healthcare close to home, free from bureaucratic obstacles.”
CMS Administrator Dr. Mehmet Oz called the awards a milestone for rural communities.
“Today marks an extraordinary milestone for rural health in America,” Oz said. “Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running. CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families.”
Washington’s project goals center on creating health opportunities in rural areas, building partnerships across the care system, expanding the workforce, deploying technology for better efficiency and connectivity, and improving financial stability for providers. By igniting innovation in hospitals and community care, the state aims to prevent disease, manage chronic conditions, and ensure long-term vitality for rural residents.
Author: Mario Lotmore
