California Awarded Over $233 million From Federal Rural Health Transformation Program  

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By
Brendan McCarthy, Danielle Bradley
Date Published
January 8, 2026

The Centers for Medicare & Medicaid Services (CMS) recently announced that California, along with the other 49 U.S. states, will receive awarded funding under the Rural Health Transformation Program (RHTP). This federal initiative was established through H.R. 1 along with a $50 billion Rural Health Transformation Fund, a five-year investment intended to strengthen rural health care systems where access, workforce shortages, and infrastructure gaps create unique challenges. Of the $10 billion awarded for fiscal year 2026, California has been awarded a total of $233,639,308.  

California’s application for RHTP funding was submitted by the California Department of Health Care Access and Information (HCAI) in early November. According to HCAI’s project abstract, California will use the funds focus on three overarching initiatives: transformative care model, workforce development, and technology. Through these initiatives, the state’s program will seek to improve health outcomes by increasing access to primary, maternity, chronic disease, and specialty care services in rural communities.   

More information on the state’s RHTP application, including an overview of California’s RHTP program proposal, is available on the State Office of Rural Health Page. Questions about the state’s RHTP initiatives can be directed to CALSORH@hcai.ca.gov