Rural Health Transformation Program
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Contact us: rural.transformation.mdh@state.mn.us
Background
H.R.1 amended section 2105 of the Social Security Act. The bill, signed into law on 7/4/2025, made major changes to public assistance programs such as Medicaid and SNAP. These changes will lead to significant cuts to those programs, and loss of coverage for the Minnesotans who rely on them. In an attempt to encourage innovative forms of care delivery in rural areas, the legislation created a Rural Health Transformation Program as a one-time effort to fund rural health priorities over the next five years.
The bill language specifies that:
- Half (50%) of funds will be distributed equally to each state with an approved application over 5 federal fiscal years. This is equivalent to $25 billion that will be distributed to states over five years through annual payments between Federal Fiscal Years 2026-2030.
- The remaining 50% of funds ($25 billion) will be distributed among at least one-fourth of the states with approved applications, at the discretion of the Centers for Medicare and Medicaid Services (CMS) Administrator.
Application
Minnesota's plan to improve rural health is built on actionable data, strong partnerships, and encouraging communities to have a say in what they need most. The plan recommends new tools and methods to improve provider financial sustainability and extend access to care into trusted community settings throughout rural Minnesota.
For summary information, review the Minnesota Rural Health Transformation Program Application Fact Sheet (PDF).
For detailed information, read the full Minnesota Rural Health Transformation Program Project Narrative (PDF).
Funding levels will be determine by CMS by the end of December, and may affect the range of activities. MDH will share more information about the budget, sub-awards, and notices of funding opportunities as it becomes available.