Breaking CMS awards $10 billion to all 50 states in year two of rural health fund 10 sources · since 1:51 PM EST (4 hr ago)
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CMS awards $10 billion to all 50 states in year two of rural health fund

The Centers for Medicare & Medicaid Services on Monday awarded $10 billion across all 50 states for the second year of the Rural Health Transformation Program, Stateline and Mississippi Today reported.

The Centers for Medicare & Medicaid Services on Monday awarded $10 billion to all 50 states for the second year of the Rural Health Transformation Program, according to reporting by Stateline outlets and Mississippi Today1,6.

The five-year fund totals $50 billion, with $10 billion available each year through 2030, the reports said1,5.

Texas received the largest fiscal 2027 grant, almost $282 million, followed by Alaska, Montana, California and Oklahoma1,3,6.

Missouri was awarded $218 million, Maine more than $190 million, and Mississippi nearly $205 million — about $1.2 million less than Mississippi's first-year award, still above the average state award3,5,6.

Half of each year's money is split equally, $100 million per state in baseline funds, with the rest based on rural population, facilities, state plans and other factors1,4,6.

CMS said it reviewed first-year progress reports from all 50 states in setting this round1,4.

Administrator Dr. Mehmet Oz said states have already put the money to work bringing care closer to home, according to a CMS news release quoted by the outlets1,6.

Congress created the program after rural providers and lawmakers raised concern about Medicaid cuts in the tax-and-spending law President Donald Trump signed last year1,6.

KFF estimated rural areas could lose about $137 billion in federal Medicaid spending over 10 years, the reports said, a figure larger than the transformation fund1,6.

Rural healthcare leaders have said the grants are welcome but will not fully offset those cuts1,4. CMS said states must use the grants to test approaches that can last after the five-year fund ends1,5.

Mississippi Today reported that state Medicaid officials expect payment-rule changes to reduce net payments to Mississippi providers by about $100 million a year beginning in July 2028, and that the state had obligated more than $94 million in program funds as of July 316.

Stateline reported that Democrats who won House and Senate majorities this month aim to repeal the underlying law, which would still need the president's signature1,4.

Sources

  1. Arkansas AdvocateFeds award $10B to states in second year of rural health grants
  2. Idaho Capital SunFeds award $10B to states in second year of rural health grants
  3. Maine Morning StarFeds award Maine $190M in second year of rural health grants
  4. Michigan AdvanceFeds award $10B to states in second year of rural health grants
  5. Missouri IndependentMissouri awarded $218 million in second year of federal rural health grants
  1. Mississippi TodayMississippi awarded $205M for second year of federal rural health program
  2. New Hampshire BulletinFeds award $10B to states in second year of rural health grants
  3. Source NMFeds award $10B to states in second year of rural health grants
  4. Utah News DispatchFeds award $10B to states in second year of rural health grants
  5. Wisconsin ExaminerFeds award $10B to states in second year of rural health grants

How it’s being reported

10 sources

First reported by Mississippi TodayMississippi Today

Where they agree

  • CMS announced $10 billion in second-year awards to all 50 states.
  • The program is $50 billion over five years, $10 billion a year through 2030.
  • Texas received the largest award at nearly $282 million.
  • Half of funding is equal baseline ($100 million per state); half is formula-based.
  • KFF estimated about $137 billion in rural Medicaid spending losses.

Where they differ

How far the grants offset Medicaid cuts

Name of the 2025 tax-and-spending law that created the program

Side by side

Each outlet's article broken down by our newsroom, in our own words. To read what they wrote, use the button under each one.

Feds award $10B to states in second year of rural health grants

Nationwide $10 billion awards and Arkansas's more than $207 million share.

Carries a Stateline report that CMS awarded $10 billion nationwide, with Texas the largest recipient and Arkansas to receive more than $207 million.

Leaves out Mississippi-specific first-year comparison and state agency spending details.

Nationwide $10 billion awards and Arkansas's more than $207 million share.

What it reports

  • CMS announced $10 billion for fiscal 2027 across all 50 states.
  • Texas received nearly $282 million, the largest award.
  • Each state gets $100 million in baseline funds; the rest is formula-based.
  • The five-year program totals $50 billion through 2030.
  • Rural healthcare leaders said the money will not fully offset Medicaid cuts.

Leaves out Mississippi-specific first-year comparison and state agency spending details.

Feds award Maine $190M in second year of rural health grants

Maine's $190 million share.

Stateline report localized to Maine's more than $190 million award, roughly matching its first-year amount.

Leaves out Mississippi's obligated-funds breakdown.

Maine's $190 million share.

What it reports

  • Maine was awarded more than $190 million, similar to year one.
  • Texas ranked first, followed by Alaska, Montana, California and Oklahoma.
  • Focus areas include maternal and behavioral health, workforce and equipment.
  • States must try to make programs sustainable after five years.
  • The program was created amid concern over Medicaid cuts in last year's law.

Leaves out Mississippi's obligated-funds breakdown.

Missouri awarded $218 million in second year of federal rural health grants

Missouri's $218 million award.

Stateline report noting Missouri's $218 million share of the $10 billion round.

Leaves out Mississippi's Medicaid payment-rule estimate.

Missouri's $218 million award.

What it reports

  • Texas received almost $282 million, the most of any state.
  • The fund provides $10 billion a year through 2030.
  • Oz said CMS wants states to build on first-year progress.
  • KFF put expected rural Medicaid losses at about $137 billion.

Leaves out Mississippi's Medicaid payment-rule estimate.

Mississippi awarded $205M for second year of federal rural health program

Mississippi's award size, year-one comparison, and how the state has obligated funds.

Original reporting that Mississippi will receive nearly $205 million, about $1.2 million less than year one, with details on state uses of the money.

Leaves out Missouri and Maine award totals.

Mississippi's award size, year-one comparison, and how the state has obligated funds.

What it reports

  • Texas and Alaska again received the largest shares; Connecticut and New Jersey the smallest.
  • A federal report showed Mississippi had obligated more than $94 million as of July 31.
  • State Medicaid officials estimated payment-rule changes could cut provider payments by about $100 million a year from July 2028.

Leaves out Missouri and Maine award totals.