What the Program Is

The Rural Health Transformation Program was created under Public Law 119-21. It provides funding to states to modernize rural care. A total of 50 billion dollars will be awarded between 2026 and 2030 through cooperative agreements between CMS and state governments. Awards are expected on December 31, 2025.

You can read the full program details directly from CMS here: CMS Rural Health Transformation Program

Applications must be submitted by a state agency with the governor’s endorsement. The deadline is November 5, 2025. Hospitals, universities, providers, and nonprofits cannot apply directly but states are encouraged to involve them as partners.

Strategic Goals

State applications must align with five national goals:

• Expand prevention, chronic disease management, behavioral health, and prenatal care
• Strengthening access to primary and specialty care in rural communities
• Recruit and retain providers in underserved areas
• Promote innovative care models and value-based arrangements
• Invest in technologies that improve connectivity, cybersecurity, and digital health access

Eligible Uses of Funds

States must choose at least three approved uses of funds. Options include:

• Consumer facing technologies such as patient apps and remote monitoring
• Training and technical assistance to help rural providers adopt new tools
• Direct payments for certain non-reimbursable health care services
• Workforce recruitment and retention with rural service commitments
• Software, hardware, and IT upgrades to improve data sharing and cybersecurity
• Innovative care models such as accountable care organizations
• Infrastructure improvements including renovations and equipment upgrades

Why This Matters for Rural Practices

For many small practices, one time interface costs of around 10,000 dollars have been a barrier to joining a health information exchange or a Qualified Health Information Network. These costs cover setup, time, and maintenance.

KONZA Health has already taken steps to ease this burden. We have eliminated annual fees for sites with fewer than five providers that are sharing data and preventing information blocking. This lowers long term barriers and positions rural practices to make the most of this federal funding.

What Funds Can Support

States must select at least three approved uses of funds in their application. Eligible uses include:

• Consumer facing technologies such as patient apps and remote monitoring
• Training and technical assistance to help rural providers adopt technology enabled care
• Payments to providers for certain non-reimbursable health care services
• Workforce recruitment and retention with commitments to serve rural areas
• Software, hardware, and IT improvements to strengthen connectivity and cybersecurity
• Innovative care models such as value-based arrangements and accountable care organizations
• Infrastructure improvements including renovations and equipment upgrades

The Bigger Picture

The Rural Health Transformation Program is more than a technology grant. It is a chance to strengthen connectivity, improve interoperability, and ensure that rural patients are not left behind in the digital health era. Better data exchange means safer care, stronger outcomes, and more equitable access.

What You Can Do

If you are a state leader, provider, or community group, now is the time to prepare:

• Review CMS guidance and align on use cases
• Engage local partners who can deliver results
• Identify technology, workforce, and care model gaps that funding can address
• Work with trusted data exchange partners like KONZA Health to build sustainable connectivity

KONZA Health is ready to help states and their partners take full advantage of this program. Together we can turn this historic investment into healthier and more connected rural communities.

For more information or to discuss how KONZA Health can support your strategy, contact your KONZA Health representative or email us at information@konza.org .