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Virginia seeks input for competitive federal rural health transformation fund; $500M possible over five years
Summary
The state is collecting stakeholder input and preparing an application for the federal Rural Health Transformation Fund; Virginia expects an initial $100 million per year allotment and could receive more from a competitive pool, totaling up to roughly $500 million over five years if approved.
RICHMOND — Virginia officials described plans to apply for federal funding intended to bolster rural health systems and said the state is soliciting stakeholder proposals while the U.S. Centers for Medicare & Medicaid Services finalizes the application guidance.
Background: The 2025 federal reconciliation law (H.R.1) created a $50 billion rural health fund over five years. CMS will allocate half of annual funds to every state equally (about $100 million per year), with the remaining half awarded competitively based on criteria the agency sets. States must submit applications, and CMS must make awards by Dec. 31, 2025, for federal fiscal 2026 funding to begin Oct. 1, 2025.
Virginia’s planning…
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