On October 9, the Centers for Medicare & Medicaid Services (CMS) released its first report on state obligations under the Rural Health Transformation (RHT) Program. The report covers December 29, 2025, through July 31, 2026. It shows funds each state has committed to spend by September 2027, though not necessarily disbursed. California obligated the largest dollar amount of any state, obligating $219.1 million of its $233.6 million first-year award — about 94 percent.
California’s obligations break down by initiative as follows:
- $92.4 million for a transformative care model, including $39 million for Hub-and-Spoke Accelerator partnerships and $35 million in payments to strategically located hospitals.
- $73.2 million for workforce development, including $65.7 million in grants for provider recruitment, retention, and relocation.
- $36.6 million for technology, including a Rural Technical Assistance Center.
The report does not identify recipients by county. CMS will update the data after states submit quarterly reports on November 30 and will refresh it quarterly thereafter.
For additional information, contact RCRC Senior Policy Advocate, Sarah Dukett.