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Alaska wins $272 million Rural Health Transformation award; officials outline rolling grants and capacity build

Alaska House Finance — Health Subcommittee · February 19, 2026

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Summary

The Department of Health said Alaska received a $272 million Rural Health Transformation Program cooperative agreement and plans rolling readiness, planning and implementation grants; agency will add staff, issue RFPs and aim for initial awards in April–May, while emphasizing milestones CMS will review for future funding.

Deputy Commissioner Emily Ricci told the House Finance Health Subcommittee on Feb. 19 that Alaska was awarded $272 million from the federal Rural Health Transformation Program (RHTP), part of a larger federal initiative to support rural health over five years. Ricci said the department’s application emphasized community-driven projects and that the award is one of the largest amounts allocated nationally.

Implementation approach and timing: the department described four funding pathways — readiness, planning, project implementation and technical assistance — with rolling awards. Readiness and planning grants are targeted for July awards to support entities needing help to become federal-grant-ready, while project implementation awards are aimed for April–May to get some dollars into communities quickly. Ricci said the department added eight positions funded through grantee/federal receipts to support program management and will solicit third-party evaluators and other contractors.

Why it matters: the competitive RHTP award can finance multi-year changes in rural care delivery, but Ricci warned about tight federal timelines and the need to build sustainability into projects so communities do not face funding cliffs after the grant period. CMS will review milestones in the cooperative agreement and may expect legislative actions or state policy commitments tied to certain awards.

Next steps and oversight: Ricci said the department will soon receive reporting templates from CMS and will stand up application pathways and technical assistance. She emphasized a focus on geographic distribution, inclusion of smaller organizations, and building long-term capacity for rural health and long-term care services. The department committed to further briefings and planned milestones tied to the federal cooperative agreement.