Oklahoma received about $227 million for the second budget period of a five-year federal funding opportunity seeking to transform rural health.
The Rural Health Transformation Program is a $50 billion investment signed into law through the “One Big Beautiful Bill Act” last year, alongside an estimated $911 billion in reductions to federal Medicaid spending over a decade.
The Centers for Medicare and Medicaid Services said the initiative is designed to strengthen healthcare delivery and address challenges facing rural communities. The federal agency is administering the program with $10 billion available annually for states through fiscal year 2030.
Half of the money is base funding, distributed equally among all 50 states. The other portion is based on measures like rural factors and state plan initiatives.
“This next $10 billion will expand access to care, strengthen the rural health workforce, improve prevention, and help states build solutions that fit the needs of their own communities,” said Health and Human Services Secretary Robert F. Kennedy Jr. in a press release. “We are giving rural America the resources and flexibility to build stronger health systems that deliver better care and better outcomes.”
Oklahoma secured one of the highest awards nationally for its first funding cycle, at more than $223 million. It ranked behind only California, Montana, Alaska and Texas. That is still the case in the second budget cycle, though Oklahoma will receive about $3.6 million more this year.
The funding will support 29 programs. Several were launched during the first budget period, which ended Oct. 30, including microgrant awards, presidential fitness preparation, funding to improve access to local and specialty care, and chronic disease management.
More than 500 organizations across Oklahoma received awards through direct funding and partnerships. The next round of funding will help Oklahoma continue building on the foundation it laid during the first budget year, according to a press release.
“Receiving our budget period two award reflects the tremendous work of our partners throughout the state and our shared commitment to transforming rural healthcare,” said Commissioner of Health Keith Reed in the release. “As we enter this next year of RHTP in Oklahoma, we remain focused on supporting these efforts aimed at improving health outcomes and expanding access to care in our rural communities.”
Erica Rankin-Riley, a spokesperson for the State Department of Health, said in an email that stakeholders should look for additional funding opportunities, which are expected to begin rolling out at the start of next year. The department is Oklahoma’s designated lead agency for the funding opportunity.
“Transforming rural healthcare is a long-term effort,” Rankin-Riley said. “Lasting change does not happen overnight, but we remain committed to working alongside our partners, providers, and communities to improve health outcomes and strengthen access to care across rural Oklahoma.”
The original deadline for the Rural Health Transformation Program’s year-two funding announcement was set for Oct. 31, according to its 2025 funding notice. Rankin-Riley said the Centers for Medicare and Medicaid Services informed states that “additional internal steps” were necessary before it could issue funding notices.
Rankin-Riley said the federal agency initially issued $100 million in base funding to each state to ensure continuity of program operations while it finalized the remaining money.
She said that amount is currently available as unrestricted funding. The remaining funds are expected to become unrestricted once the Centers for Medicare and Medicaid Services approves the State Department of Health’s final budget submission, which is due Nov. 30.
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