Texas is receiving $1.4 billion through the Rural Health and Transformation Program, according to the Governor.
TEXAS, USA — Governor Abbott has announced that help is on the way for rural Texas hospitals.
In a news release on Monday, the Governor said Texas will receive a historic $1.4 billion in federal funding to improve rural health services across the state.
That money will be released in annual payments of $281 million for the next five years, according to the release.
“Thanks to the input and partnership of our rural healthcare stakeholders, Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans,” said HHS Executive Commissioner Cecile Young.
The federal program falls under President Trump’s One Big Beautiful Bill Act, passed in July. It allots $50 billion to support rural hospitals across the country. The same bill also included major cuts to Medicaid, which experts predict could lead to rural hospitals losing $70 billion in Medicaid reimbursements over the next 10 years.
Texas had previously submitted its application titled “Rural Texas Strong: Supporting Health and Wellness,” to the federal government in November.
Texas plans to use the federal funds to offer grants to reduce chronic disease through prevention, invest in consumer-facing technology to engage patients to improve their health, deploy AI and telehealth services, improve cybersecurity defenses to protect patient data, and upgrade equipment throughout rural hospitals and clinics. Scholarships, career development, relocation payments, and training programs will help recruit and retain health care workers.
“Rural Texans across the state will benefit from this historic federal investment. We will strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives,” said Governor Abbott.