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California awarded $233.6 million from CMS to support rural health transformation

Health Care Affordability Advisory Committee · January 27, 2026
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Summary

OCA announced a provisional CMS award of $233.6 million for federal FY2026 to support California's Rural Health Transformation Program, to be re-budgeted and submitted to CMS. Staff said funds will target hub-and-spoke models, workforce analyses, and technology investments, subject to CMS approval and allowable-cost review.

California's Office of Health Care Affordability (OCA) told its advisory committee that the state received a provisional notice of award from the Centers for Medicare & Medicaid Services for $233,600,000 under the Federal Rural Health Transformation Program.

Director of the Office said the notice arrived Dec. 29 and OCA will submit a revised budget to CMS to reflect the larger award. "California got…

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