To partially ease the impact of Medicaid cuts in rural areas, Congress included $50 billion in relief for rural hospitals in its reconciliation package, with eligible facilities including CCBHCs, community mental health centers, opioid treatment programs, hospitals. Rural states have until the end of the year to apply for their share. At this time, it appears CMS has not yet provided further public details on where or how states can apply.
The fund, which will allocate $10 billion annually from 2026-2030, is meant to strengthen rural health systems through restructuring, improving emergency care and supporting hospitals at risk of closing. States whose applications are successful will receive funding for all five years. According to InsideHealthPolicy, half of the funding will be distributed evenly among all states with approved applications, while the other half will be allocated at the discretion of CMS Administrator Mehmet Oz, MD, based on statutory criteria.