US allots at least $147 million per state for rural health in 2026

Dec 29 (Reuters) - The Trump administration will award between $147 million and $281 million to each U.S. state in 2026 under a new rural health transformation program aimed at improving access to care and the quality of services, a senior White House aide said on Monday.

The initiative, authorized by the One Big Beautiful Bill Act, will provide $50 billion over five fiscal years, with $10 billion available annually from fiscal 2026 through fiscal 2030 for all 50 states.

Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said the administration designed the fund to lift rural health outcomes that have deteriorated for decades while avoiding the construction of costly new facilities.

"This is a massive effort to change the unfortunate reality that has overtaken rural healthcare in America, which is that your ZIP code has started to predict your life expectancy," Oz told reporters, adding that the money would back other pilot projects across the country.