Rural Health Transformation

 
 
 
 
 
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DHHS to Apply for Rural Health Transformation Program Funding by November 5, 2025

The Nebraska Department of Health and Human Services (DHHS) will submit an application for Rural Health Transformation​ (RHT) Program funding by November 5, 2025. 

For questions or comments regarding Nebraska's RHT application, please email DHHS.RHTP@nebraska.gov


Program Background

H.R.1, signed into law on July 4, 2025, enacted the Rural Health Transformation (RHT)​ Program, which allows for the allocation of funding to support the provision of health care in rural areas.​ ​​​​​

RHT Program fundi​ng consists of $50 billion dollars ($10 billion per fiscal year) to be distributed to states ​​from fiscal year 2026 through fiscal year 2030. 

$25 billion will be distributed equally amongst all approved states. The remaining $25 billion will be ​allocated by the United States Centers for Medicare and Medicaid Services (CMS) based on a variety of factors, including:

  • The state's rural population
  • The proportion of rural health facilities in the state
  • T​he situation of certain hospitals in the state
  • Other factors specified in the CMS Notice of Funding Opportunity (NOFO)​​

​​Funding Uses​

RHT Program funds must be used for three or more of the following approved uses:

  • Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.
  • Providing payments to health care providers for the provision of health care items or services, as specified by the administrator.
  • Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases.
  • Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.
  • Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years.
  • Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes.
  • Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines.
  • Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj)(1)), other substance use disorder treatment services, and mental health services.
  • Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate.
  • Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the administrator:
    • Investing in existing rural health care facility buildings and infrastructure, including minor building alterations or renovations and equipment upgrades to ensure long-term overhead and upkeep costs are commensurate with patient volume, subject to restrictions in the funding policies and limitations.
    • Initiating, fostering, and strengthening local and regional strategic partnerships between rural facilities and other health care providers to promote quality improvement, improve

Important Dates​

  • July 4, 2025H.R.1​ was signed into law, establishing the RHT Program.
  • September 15, 2025: CMS posted the Notice of Funding Opportunity (NOFO) for the RHT Program.
  • November 5, 2025: States which choose to apply for RHT Program funding must do so by this date.
  • December 31, 2025: CMS​ must ap​​prove or deny applications by this date.

Why RHT Program Funding Matters for Nebraska

​​​With 37% of Nebraskans liv​​ing in rural areas, RHT program funding ​​has the potential to make a significant impact in our state. 88 out of Nebraska's 93 counties are rural, with 30 of these ​classified as frontier counties.  ​