LUGPA Policy Update - CMS Announces $50 Billion Rural Health Transformation Program Awards to All 50 States

January 2026

At-a-Glance Essentials

What’s Changing

• CMS announced $10 billion in FY 2026 awards under the new Rural Health Transformation Program, the first year of a $50 billion, five-year initiative authorized by the Working Families Tax Cuts Act (P.L. 119-21).
• All 50 states will receive funding, ranging from approximately $147 million (New Jersey) to $281 million (Texas), with an average of about $200 million per state in year one.

Why It Matters

• More than 60 million rural Americans face ongoing barriers to specialty care, including urologic services such as prostate cancer treatment, kidney stone management, urinary incontinence care, and men’s health services.
• Long travel distances, workforce shortages, and limited infrastructure contribute to delayed diagnoses, poorer outcomes, and higher costs.
• Independent urology practices—many of them LUGPA members—are essential to maintaining access to high-quality, community-based specialty care in rural communities.

Action Steps for Members

• Review your state’s Rural Health Transformation Plan abstract for opportunities to include urology services.
• Engage early with state health officials and rural health offices to advocate for specialty care integration.
• Highlight the role of independent urology practices in improving access, quality, and cost-effectiveness.

Bottom Line
This significant federal investment creates new opportunities to reduce rural health disparities while supporting LUGPA’s priorities around patient access, independent practice sustainability, and locally delivered specialty care.

Program Overview

The Rural Health Transformation Program supports state-led strategies to:

• Expand access to rural health services
• Strengthen and stabilize the healthcare workforce
• Modernize infrastructure and health IT
• Promote provider partnerships and care coordination
• Advance innovative care delivery and payment models

Impact on LUGPA Members

Expanded Access & Local Care

• Funding supports telehealth, hub-and-spoke models, and new access points that help keep specialty care closer to patients.

Workforce Support

• Investments in recruitment, retention, and training aim to address rural workforce shortages.

Technology & Efficiency

• Support for telehealth platforms, AI-enabled tools, cybersecurity, and interoperability can reduce administrative burden.

Independent Practice Viability

• Emphasis on local providers and flexible partnerships helps counter consolidation pressures.

State plan abstracts are available here:
https://www.cms.gov/files/document/rht-program-state-provided-abstracts.pdf