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Texas leaders urge rural providers to apply for $50 billion federal rural health program
Summary
Governor Greg Abbott and Secretary Kennedy urged rural health providers to apply for a new federal $50 billion rural health program, highlighted state contributions and prioritized telehealth, workforce and primary care; officials said decisions are due Dec. 1 and funds would begin distribution in January.
Governor Greg Abbott and Secretary Kennedy urged rural health providers on Monday to prepare applications for a federal $50 billion program they described as designed to stabilize and transform rural health care.
"The secret weapon for us is it's the rural areas of the state that produce the food, fiber, and fuel for the entire nation," Abbott said, framing rural health as central to both the state and national well-being. Abbott said Texas has already committed state funding to rural health, citing more than $300 million from the most recent legislative session and nearly $500 million over two sessions for mental health.
Secretary Kennedy described the federal package as "President Trump's big beautiful bill" that would deliver $50,000,000,000 over five years and called it an "unprecedented" infusion intended to stabilize struggling rural hospitals. "The first $25,000,000,000 of that is gonna be distributed evenly to the 50 states," he said, adding that the second half of the fund will be distributed through a competitive process that rewards quality applications.
Officials said they expect some guaranteed funds to flow to Texas and stressed program priorities that the administration and state leaders want emphasized, including expanding telehealth (particularly behavioral telehealth), using technology and artificial intelligence to extend specialist access, and investing in workforce recruitment and retention to create lasting staffing solutions.
Kennedy urged local providers to cooperate on applications and noted that part of the application scoring will consider state policy steps described in the meeting as the "Baja legislation"; the transcript does not specify legislative text or citation. He said decisions would be made by Dec. 1, and funds would begin to be distributed in January.
Officials encouraged providers to propose projects focused on infrastructure, workforce quality and quantity, preventive and value-based care, and innovations that could be replicated elsewhere.
The announcements do not substitute for formal program guidance or grant materials. Officials attributed funding amounts and distribution timelines to the federal program; applicants should consult official notices for eligibility, deadlines and scoring criteria.
