# CMS Awards $10B for Rural Health

CMS distributed **$10 billion in FY2027 Year 2 Rural Health Transformation Program (RHTP) awards to all 50 states**, bringing distributions to $20 billion of the initiative’s $50 billion five-year total; $30 billion remains across three annual rounds. Allocations were partly tied to implementation progress, and funds are conditional on approved uses, state progress, and reporting and oversight. State agencies may use the awards to create grant, subaward, and solicitation opportunities in rural care delivery, workforce, health technology, cybersecurity, behavioral health, and infrastructure. Arkansas received $207.7 million and expects to issue its second-year funding notice in early January 2027; North Carolina received $216,824,573.30 and scheduled a public implementation webinar for December 10, 2026.

- State agencies will determine how federal awards translate into procurements and subawards. Contractors should review state implementation plans and Medicaid.gov guidance to identify eligible work and state-specific funding pathways.
- Arkansas’s anticipated notice of funding opportunity is expected in early January 2027; prior-year recipients must reapply and are not guaranteed renewed funding.
- North Carolina’s December 10 webinar is **27 days away** and may clarify implementation priorities and funding pathways. Organizations interested in the state’s rural workforce, technology, or care-delivery partnerships can use it to inform their engagement.
- The remaining $30 billion is distributed over three annual rounds, so organizations should align proposed services with state priorities and the program’s approved uses, reporting, and oversight conditions.

**Jurisdictions:** federal, sled
**Industries:** Healthcare, Information Technology
**Topics:** Grants & Funding, Cybersecurity, Digital Infrastructure
**Published:** November 12, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)
- State governments participating in the Rural Health Transformation Program
- Arkansas Department of Finance and Administration (DFA)
- North Carolina Department of Health and Human Services (NCDHHS)

### Key Quotes
> Every North Carolinian should have access to affordable, high-quality health care close to where they live. We will continue to make the most of every dollar we receive through the Rural Health Transformation Program to strengthen health care in communities across the state.
> — Josh Stein, Governor of North Carolina

> Rural Americans have life expectancies three years shorter than their urban peers,
> — Mehmet Oz, CMS Administrator

### Sources
- [Rural Health Transformation Program: Year 2 Awards | CMS](https://www.cms.gov/newsroom/fact-sheets/rural-health-transformation-program-year-2-awards) - CMS
- [CMS Awards $10B in Year 2 Rural Health Transformation Funds](https://www.executivegov.com/articles/cms-rural-health-transformation-program-year-2-state-awards) - ExecutiveGov
- [Arkansas awarded $207.7 million in second installment from federal Rural Health Transformation Program | The Arkansas Democrat-Gazette - Arkansas' Best News Source](https://www.arkansasonline.com/news/2026/nov/11/arkansas-awarded-2077-million-in-second) - The Arkansas Democrat-Gazette