Kentucky to Receive More Than $210 Million for Rural Health Care Projects
U.S. Rep. Brett Guthrie
Neil Thornbury, CEO of TJ Regional Health
By Jeff Jobe
Community Commentator
WASHINGTON, D.C. — Kentucky is slated to receive more than $210 million in federal funding aimed at strengthening and modernizing rural health care systems under the newly established Rural Health Transformation (RHT) Program, according to an announcement by the Centers for Medicare and Medicaid Services.
U.S. Rep. Brett Guthrie, chairman of the House Committee on Energy and Commerce, said the funding represents one of the most significant rural health investments in the state’s history.
“The Working Families Tax Cuts law delivered the most historic investment in rural health that we’ve seen in our lifetimes,” Guthrie said, noting that more than $212.9 million has been allocated to projects across Kentucky. “The Rural Health Transformation program will provide funding to transform health care systems so that we can help assure the long-term sustainability of our rural providers for years to come.”
The RHT program was authorized under federal legislation enacted during the Trump administration and is designed to help states address long-standing challenges facing rural hospitals, clinics, and health care providers. The funding is intended to support innovative approaches to care delivery, improve access to services, and promote long-term financial stability for rural providers.
Local health care leaders welcomed the announcement while noting that details on how the funds will be distributed are still forthcoming.
“This is good news for Kentucky’s rural hospitals and the citizens of the commonwealth,” said Neil Thornbury, CEO of TJ Regional Health. “While we haven’t yet seen the details of the distribution plan, we are confident that the funding will be distributed as intended — to rural health care organizations like ours that are preparing for massive cuts from Medicaid and other programs.”
According to CMS, funding decisions were based on a rigorous, data-driven merit review process conducted by federal and non-federal rural health experts to ensure fairness, transparency, and consistency across all states.
Funding will be distributed over a five-year period beginning in federal fiscal year 2026. As states implement their initiatives, program officers from CMS’s Office of Rural Health Transformation will provide technical assistance and oversight to help ensure projects are launched and sustained effectively.
Under the law, $25 billion in RHT funding will be distributed evenly among the 50 states over five years, while an additional $25 billion will be allocated based on rural health needs and long-term transformation goals established by the Secretary of Health and Human Services. Only the 50 states are eligible to receive funding; the District of Columbia and U.S. territories are excluded.
Officials with the Centers for Medicare & Medicaid Services say the program is intended to give states flexibility to design solutions that reflect the unique needs of their rural communities while strengthening health care access statewide.
