H.R. 1, also known as the One Big Beautiful Bill, was passed by the Senate on July 1, 2025. A key part of this bill is the Rural Health Transformation Program. This program aims to help rural health care by providing $10 billion each year for five years, totaling $50 billion. States, not individuals, will manage these funds to enhance health services in rural areas.
To access this funding, states must submit an application by December 31, 2025. Their plans must show how they will improve health access and outcomes, support new technologies to connect patients and providers, and promote collaboration among rural health providers. States must also detail how they will ensure long-term financial stability for rural hospitals.
If chosen, a state will receive funding for all five years based on its rural population and health care needs. They must use the money for at least three specific purposes, such as:
- Promoting evidence-based practices for chronic disease management.
- Paying health providers for specific services approved by the Centers for Medicare & Medicaid Services (CMS).
- Supporting technology solutions for better health care.
- Helping recruit health professionals to rural areas.
These initiatives are crucial as many rural hospitals struggle financially, with about 20% of them at risk of closure, according to recent reports. The Rural Health Transformation Program seeks to mitigate this issue by targeting resources where they’re needed most.
Currently, H.R. 1 is back in the House for possible changes. The Rural Health Transformation Fund is a vital addition that could lessen the adverse effects of other parts of the bill on rural health funding. Moving forward, regular updates will help track how this initiative shapes the future of rural health care.
For more detailed information on the legislative aspects, check Congress.gov.