# CMS Awards Alabama $199M Rural Health Grant

On November 9, 2026, the Centers for Medicare and Medicaid Services (CMS) awarded Alabama $199,278,801 for FY 2027 through the Rural Health Transformation Program, following a $203,404,326 award for FY 2026. The Alabama Department of Economic and Community Affairs (ADECA) administers the federally funded program. State implementation plans and future procurements may create opportunities tied to rural-care modernization, workforce, and prevention, subject to program eligibility and allowable-use requirements.

- Healthcare organizations and contractors can use the FY 2027 award as an indicator of potential state-level demand in rural health initiatives; specific solicitations and spending plans are not provided in the signal.
- Businesses should evaluate their ability to support rural-care modernization, workforce, or prevention activities and confirm that proposed services fit program eligibility and allowable uses.
- Representative Terri Sewell has raised concerns that eligibility restrictions may limit smaller hospitals’ ability to use funds for operational expenses, a consideration for organizations planning proposals that involve rural hospitals.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Grants & Funding
**Published:** November 10, 2026

### Government Entities
- Centers for Medicare and Medicaid Services (CMS)
- Alabama Department of Economic and Community Affairs (ADECA)

### Key Quotes
> I am hearing significant concerns from our smaller hospital administrators that the program’s eligibility requirements are too burdensome and restrictive, limiting their ability to use these funds to cover the operational expenses that are essential to keeping their doors open.
> — Terri Sewell, U.S. Representative

### Sources
- [Alabama's RHTP awarded $199 million for FY 2027   ](https://www.alreporter.com/2026/11/10/alabama-rural-health-transformation-program-awarded-199-million-for-fy-2027) - Alabama Political Reporter