Federal News
Illinois Secures Rural Health Transformation Funding
March 13, 2026
Illinois has been awarded approximately $193 million annually for five years through the Rural Health Transformation (RHT) program to support rural healthcare access following Medicaid cuts under the One Big Beautiful Bill Act. Congresswoman Nikki Budzinski convened a roundtable with rural health providers and the Illinois Department of Healthcare and Family Services (HFS) to address funding challenges and emphasize the need for ongoing collaboration and transparency in implementing these funds. This initiative aims to sustain and strengthen rural health services across Illinois, particularly in critical access hospitals and rural communities affected by Medicaid reductions.
- The RHT funding represents a significant federal-state partnership to mitigate the impact of Medicaid cuts on rural healthcare providers in Illinois.
- Procurement professionals should note the importance of coordinated planning with state agencies like Illinois HFS to align grant implementation with local healthcare needs.
- Healthcare contractors and service providers may find opportunities supporting rural hospitals and clinics as they adapt to new funding structures and compliance requirements.
- Continued stakeholder engagement and transparent communication will be critical for maximizing the benefits of the RHT program and ensuring effective use of allocated funds.
I now have confidence that we, as a small rural independent critical access hospital, will be able to benefit from a portion of the Rural Health Transformation (RHT) Funding. Medicaid funding translates to roughly 28% of our payor mix, and the H.R.1 bill will negatively impact our organization. The Illinois HFS and other sister agencies have worked diligently around the Rural Health Transformation funding rules to prepare and develop a comprehensive plan to strengthen Illinois rural healthcare for the future.
— Don Robbins, CEO of Massac Memorial Hospital
Medicaid is a lifeline for countless Illinoisans 6 and the $137 billion in rural Medicaid cuts made in President Trumps so-called Big Beautiful Bill put that care in jeopardy. While I am hopeful that the funding Illinois received via the Rural Health Transformation program will aid our rural communities, this is a band-aid on a massive hole for healthcare in Illinois.
— Congresswoman Nikki Budzinski
These sessions are helping stakeholders better understand the opportunities and implementation guidelines associated with the State of Illinois Rural Healthcare Transformation (RHT) Grant process. This collaboration will be instrumental in supporting rural healthcare organizations as they navigate the program and work to maximize the benefits of this transformational grant opportunity.
— Larry Spour, President of Community Hospital of Staunton
Agencies
Illinois Department of Healthcare and Family Services, Centers for Medicare and Medicaid Services
Contracts
$193,418,216 per year for five years