CMS Announces Awards to All States in Second Year of Rural Health Transformation Program
Author
Melissa Dehoff
Date
November 9, 2026
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The Centers for Medicare & Medicaid Services (CMS) announced $10 billion in awards to all 50 states for the second year of the Rural Health Transformation Program (RHTP). The goal of this program is to transform rural healthcare across America and help states build on early progress and deliver lasting improvements in access, quality, and health outcomes for rural Americans.
The year two (fiscal year 2027) Rural Health Transformation award for Pennsylvania is $190,730,492. These funds were created through the Working Families Tax Cuts Act.
In the second year, states will build on this momentum by advancing initiatives from their approved state-developed transformation plans. Depending on each state’s priorities, these initiatives may include efforts to improve prevention and chronic disease management; create sustainable access to care; strengthen the rural health workforce; advance innovative care and payment models; and put modern technology and data to work for rural patients and providers.
This year’s awards also reflect, in part, states’ progress implementing their approved RHTP plans. All 50 states submitted annual reports documenting their progress, which CMS reviewed as part of determining each state’s award. State awards were determined based on a variety of factors, including state progress on implementation of state policies to improve rural health, such as the Presidential Fitness Test and Continuing Medical Education (CME) for physicians on nutrition. This annual review strengthens accountability for this historic federal investment and helps ensure taxpayer dollars continue supporting progress toward rural health transformation.
Additional information about the RHTP and year two awards, including how annual funding amounts are determined, is available via the CMS fact sheet. There is also information about the RHTP, including state information, program guidance, and implementation resources, here.



