Texas is set to receive more than $1.4 billion in federal funding over the next five years to expand health care access in rural communities, according to KERA News. The money comes through the newly created Rural Health Transformation Program, part of a tax and spending bill passed earlier this year.
Federal officials awarded Texas $281 million annually, the largest allocation granted to any state. Texas had requested $1 billion total, but ultimately received hundreds of millions more, KERA News reported.
In a statement, Gov. Greg Abbott said the funding will target long-standing access issues across rural Texas. “We will strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives,” Abbott said.
The scale of the investment reflects the state’s rural footprint. Texas has 4.3 million rural residents, and federal data show that 241 of its 254 counties contain at least one rural census area, with 195 counties classified as fully rural. Many of these areas are considered health care deserts, lacking nearby doctors, OB-GYNs, or emergency services.
The Texas Health and Human Services Commission submitted its proposal to the Centers for Medicare and Medicaid Services in November, outlining the “Rural Texas Strong” initiative. The plan includes workforce development, technology upgrades, and new approaches such as artificial intelligence in rural care delivery.
Funding will be distributed through a competitive process to rural hospitals, local governments, and community health centers. HHSC Executive Commissioner Cecile Young said, “Thanks to the input and partnership of our rural healthcare stakeholders, Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”
