Certain rural public Texas hospitals are the first to receive federal funds distributed by the state’s Health and Human Services Commission (HHSC) under Rural Texas Strong.
The state’s federally approved program is implementing and distributing Texas’ share of $50 billion in federal funds to be distributed over five years under the Rural Health Transformation Program established by the One Big Beautiful Bill Act.
Gov. Greg Abbott’s office announced on Sept. 28 that $51 million in federal grant money was distributed to 68 rural hospital districts with a publicly owned and operated hospital under Initiative One, “Make Rural Texans Healthy Again,” $750,000 per recipient in direct funding for the first year of the five-year program.
Texas received the largest award given to any state to implement its Rural Texas Strong program, which is divided into six initiatives. For the program’s first year, $281.3 million has been earmarked for distribution.
According to HHSC, Initiative One helps rural hospital districts improve outcomes for patients with chronic disease conditions such as diabetes, cardiovascular disease, chronic respiratory disease, or obesity.
“HHSC is committed to ensuring local communities have the resources to invest in solutions that make the greatest impact,” HHSC Executive Commissioner Stephanie Muth said in the governor’s announcement.
HHSC’s website states that contracts began routing to successful grant applicants for Initiative One, Part One, in late September. More grant money is expected to be awarded this year through Initiative One, Part Two, totaling $56.25 million that was open to all rural hospitals meeting eligibility on a competitive application basis.
The Texas Medical Association is tracking the distribution of funds from all six initiatives, including one that focuses on the rural health workforce.
Initiative Four, Part One “The Next Generation of the Small Town Doctor and Team,” will spread $247 million over five years for rural health care practitioner/employee recruitment, training, and retention. Under Initiative Four, Part Two, an additional $75 million is earmarked for rural behavioral health care practitioners over five years.
Additional grant awards are expected this year, including rural infrastructure expansion. Other initiatives focus on investments in consumer-facing technology to engage with patients in rural areas on improving their health; deployment of artificial intelligence and telehealth services to bridge service gaps in rural areas; and cybersecurity enhancements for rural areas.
For questions about the Rural Texas Strong program, contact HHSC Rural Texas Strong.