What the $50 Billion Rural Health Transformation Program Means for Wyoming

The Rural Health Transformation Program (RHTP) created under the One Big Beautiful Bill Act (OBBA) is investing $50 billion nationwide to stabilize and strengthen rural hospitals and healthcare providers. This initiative is especially important for states like Wyoming, where access to quality healthcare is vital to keeping our rural communities strong and sustainable.

The Centers for Medicare & Medicaid Services (CMS) published details in September outlining how states could apply for this funding. The application window has now closed, and local communities are now watching closely as federal agencies make their decisions.

Below are key points about the program and what to expect moving forward:

Timeline

• Award Announcements: Expected by December 31, 2025

• Program Monitoring: CMS will begin ongoing monitoring and support starting in 2026 and continuing beyond.

Funding and Allocation

• Distribution: Half of the total funds will be evenly divided among states with approved applications. The other half will be allocated based on factors such as:

  • Population living in rural areas

  • The number and condition of rural health facilities

  • Each state’s specific hospital needs

Funding Use and Deadlines

• Spending Timeline: Funds must be used by the end of the following fiscal year after each budget period begins.

  • Budget Period 1: December 31, 2025 – September 30, 2026

  • Future periods: Begin each October through FY2030.

• Unspent Funds: Any funds not used will be reallocated by CMS in the next fiscal year.

• Restrictions: Funds cannot be used for Medicare or Medicaid reimbursement or to pay for services already covered by other sources.

Award Administration

• Notification: Approved states will receive a formal Notice of Award (NoA) from CMS.

• If Not Approved: CMS will notify applicants within 30 days after the award date.

• Program Duration: States that are approved will remain eligible for the full five-year period, provided they meet performance and reporting requirements.

WY It Matters: This program could be a game-changer for Wyoming’s rural hospitals and healthcare providers. Strengthening access to care keeps our communities healthy, our workforce strong, and our local economies moving forward.

The Wyoming Chamber of Commerce will continue to monitor updates from HHS and CMS, and advocate for the healthcare support Wyoming’s rural communities deserve.