Vermont awarded $195 million under CMS Rural Health Transformation grant; RFPs, rural eligibility and procurement next

Jan 15, 2026

Agency of Human Services told the committee it received a $195 million first‑year Rural Health Transformation award from CMS, will submit a revised budget to reflect the award, and must still work with CMS on eligible uses, procurement (RFPs), and rural eligibility criteria (including how Chittenden County is treated).

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Jill Mazza Olsen, AHS Medicaid and Health Systems director, told the Senate Appropriations Committee that Vermont applied for the Centers for Medicare & Medicaid Services’ Rural Health Transformation (RHT) grant and received notice of award on Dec. 29. The state requested $200 million and received a $195 million first‑year award, which the agency called a “terrific award” given the short turnaround and competitive review process.

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