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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
- Arkansas AdvocateFeds award $10B to states in second year of rural health grants
- Idaho Capital SunFeds award $10B to states in second year of rural health grants
- Maine Morning StarFeds award Maine $190M in second year of rural health grants
- Michigan AdvanceFeds award $10B to states in second year of rural health grants
- Missouri IndependentMissouri awarded $218 million in second year of federal rural health grants
Mississippi TodayNew Hampshire BulletinSource NM+2 moreHide
- Mississippi TodayMississippi awarded $205M for second year of federal rural health program
- New Hampshire BulletinFeds award $10B to states in second year of rural health grants
- Source NMFeds award $10B to states in second year of rural health grants
- Utah News DispatchFeds award $10B to states in second year of rural health grants
- Wisconsin ExaminerFeds award $10B to states in second year of rural health grants
How it’s being reported
10 sourcesFirst reported by
Mississippi Today
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.
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.
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.
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.
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