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Mississippi official outlines $205.9 million first-year award, says CMS will tightly oversee rural health program

Legislative hearing (state legislators questioning governor's office) · June 5, 2026
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Summary

Richard Grimes, director of the governor's Rural Health Transformation Program office, said Mississippi's plan received $205,900,000 for year one of a five-year $50 billion federal cooperative agreement and that CMS must approve budgets, scoring rubrics and public releases.

Richard Grimes, director of the Rural Health Transformation Program office in the governor's office, told legislators the state's application earned $205,900,000 for the first year of a five-year federal cooperative agreement intended to transform rural health care.

"The purpose of the $50,000,000,000 investment is not to pay off the bills," Grimes said, describing the federal intent to "right size the system" and to fund new or transformative initiatives rather than ongoing costs. He said the federal program was announced by CMS leadership and that annual allotments may be reassessed based on states' measurable progress.

Grimes described the funding instrument as a cooperative agreement and emphasized CMS' role: the agency issued a notice of funding opportunity and will review and approve scoring rubrics, budgets and every public release tied to the award. He said CMS' approval of a budget-by-initiative on April 20, 2026, enabled the state to move from planning toward implementation and that Mississippi must obligate year-one funds by an October 2026 deadline.

Legislators pressed Grimes for details on how the governor's office and subject-matter agencies contributed to the plan and how outcomes will be measured. Grimes said the governor's office and state agencies converted the initiatives into a budget after CMS guidance and that all awards must align strictly with CMS-approved initiatives and reporting requirements.