The state of Texas will embark on a critical milestone for its rural health care system after securing an unprecedented federal investment above and beyond 1.4 billion dollars spread over five years. The announcement was made by Governor Greg Abbott, who emphasized that the resources will allow us to strengthen hospitals, expand essential services and promote prevention and wellness programs in areas far from large urban centers.
Funding comes from the Rural Health Transformation Program under legislation known as the One Big Beautiful Bill Act. The program assigns 50 billion dollars to states to promote structural changes in rural health care. According to the official statement, Texas will receive $281 million per yearthe highest number among all participating jurisdictions, according to the Centers for Medicare and Medicaid Services (CMS) notice to the State Health and Human Services Commission (HHSC).
The Texas plan, called “Rural Texas Strong: Supporting Health and Wellness,” aims to maintain health care in communities with fewer resources and greater vulnerability. State authorities stressed that the money comes at a crucial time as rural hospitals are under financial pressure and struggling to retain skilled staff. Abbott said the investment will expand access to physical and mental care and reduce chronic disease through nutrition and wellness initiatives.
“Rural Texans across the state will benefit from this historic federal investmentl. “We will strengthen our rural hospitals, expand access to essential health care for mental and physical health, and help reduce chronic disease through wellness and nutrition initiatives,” said Governor Abbott. “I thank President Trump, Secretary Kennedy and Administrator Oz for their efforts to improve rural health care for Texans and all Americans.”
HHSC Executive Director Cecile Young said, “We are grateful for the federal government’s investment to increase access to preventative and life-saving care for people in rural communities across the state.”
According to the statement, the funds will be distributed through a competitive process and will be focused on several strategic lines. This includes Grants for chronic disease prevention and reduction programsInvestments in technology for direct use by patients, integration of artificial intelligence tools and telehealth services to fill gaps in care, and training, scholarships and assistance for the relocation of health workers.
The plan also provides resources to improve cybersecurity at medical centers and upgrade equipment at rural hospitals and clinics.
Local governments, community hospitals, federally qualified health centers, behavioral health providers, and other qualified entities are eligible to apply. Officials expect the call to be available through the HHSC funding portal in the spring.
State authorities claim the funding will strengthen health infrastructure in rural communities and prevent the loss of essential services in areas with low population densities. According to the statement, this is what the program aims to do Modernization of hospitals and clinicsStrengthening staff and expanding the use of technology and telemedicine with the aim of ensuring continuity of care for residents of these areas.
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