CMS Launches $50 Billion Rural Health Transformation Project

The Centers for Medicare & Medicaid Services (CMS) has announced $50 billion in funding for its new Rural Health Transformation Program (RHTP). This initiative is intended to support development and implementation of state rural health transformation plans that facilitate access, improved health outcomes, use of data and technology and workforce development in rural settings. An important goal of this program is to support access to mental health and substance use disorder services, including treatment for opioid use disorder, which may also help address the emergence of poly-substance use in rural areas.

The Ohio Council in partnership with a host of other stakeholders recently wrote to Governor DeWine encouraging his administration to apply for the funding and to ensure that community behavioral health providers be included in any resource allocation in support of rural health care. Funding will be allocated to approved states over five years, with $10 billion available each year beginning in federal FY26 (Oct. 1, 2025-Sept. 30, 2026). States have until November 5 to apply, and this will be a one-time application. CMS will announce approved states by December 31 and begin disbursing funds in 2026.

CMS recently launched The Rural Health Transformation Program website and posted the RHTP application is available here.  Ohio must select at least three of eleven priorities for transforming rural healthcare as part of the application, and we will be seeking feedback from our members as we continue our work to support Ohio’s application.

In Ohio, the Governor’s Office and Ohio Department of Health (ODH) hosted a webinar that reviewed the RHTP on September 18th.  ODH has created an Ohio RHTP website and is collecting stakeholder feedback through a survey.  Survey responses are due October 3, 2025 COB. 

To better understand the major components of the RHTP, including how behavioral health organizations and state partners can engage with and benefit from this opportunity, theNational Council for Mental Wellbeing is hosting an online webinar, Exploring Opportunities in the Rural Health Transformation Program on October 1st from 3pm – 4pm. During this session, National Council experts will break down the program’s goals, structure, and key components; walk through the timeline for application, approval and implementation; and explore how the National Council can support members and partners in designing innovative and sustainable workforce strategies and in helping states meet performance targets.