Appropriations subcommittee directs draft for Rural Health Transformation perpetuity fund, approves guardrails and reporting

Dec 15, 2025

The joint appropriations subcommittee backed key design choices for a Rural Health Transformation bill: a perpetuity fund with a 4% baseline payout, authorization of four program categories, flexible percentage goals rather than rigid statutory allocations, quarterly reporting, and language to allow the Department of Health to use rulemaking within legislative guardrails.

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A legislative appropriations subcommittee on rural health transformation on Jan. 1 directed staff to prepare a bill draft that would create a perpetuity fund for federal RHT (Rural Health Transformation) dollars, set a 4% baseline annual payout, and authorize the Department of Health to implement detailed program rules while reserving legislative oversight on large awards.

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