Governor Abbott Announces Historic $1.4 Billion In Federal Funding Secured For ‘Rural Texas Strong’ Projects

December 29, 2025 | Austin, Texas | Governor Greg Abbott today announced that Texas will receive a historic investment of over $1.4 billion in federal funding over five years to improve rural health care throughout the state. 

“Rural Texans across the state will benefit from this historic federal investment. We will strengthen our rural hospitals, expand access to critical mental and physical health care, and help reduce chronic disease through wellness and nutrition initiatives,” said Governor Abbott. “I thank President Trump, Secretary Kennedy, and Administrator Oz for their efforts to improve rural health care for Texans and all Americans.”

The Centers for Medicare & Medicaid Services (CMS) notified the Texas Health and Human Services Commission (HHSC) that it is receiving funding through the Rural Health Transformation Program. As part of the One Big Beautiful Bill Act, the program is allocating $50 billion to states over five years to help transform rural health care. Texas will receive $281 million each year for five years, the most of any state in the program.  

Texas submitted its application, “Rural Texas Strong: Supporting Health and Wellness,” to CMS in early November.

“We are grateful for the federal government’s investment in increasing access to preventive and lifesaving care for people who live in rural communities across the state,” said HHS Executive Commissioner Cecile Young. “Thanks to the input and partnership of our rural healthcare stakeholders, Texas now has the opportunity for innovative and tailored solutions that will improve health care for current and future generations of Texans.”

HHSC will use a competitive process to allocate funds for initiatives that:

• Offer grants to reduce chronic disease through prevention, wellness and nutrition services.
• Invest in consumer-facing technology to engage with patients on improving their health.
• Deploy artificial intelligence and telehealth services to bridge service gaps.
• Recruit and retain rural health care workers through career development, scholarships, relocation payments, and training programs.
• Improve cybersecurity defenses to protect patient data.
• Upgrade equipment in rural hospitals and clinics.

Local governments, rural hospitals, rural federally qualified health centers, rural behavioral health providers, and other qualified applicants will be eligible to apply for funding in the spring. More information will be available on the HHSC Grants webpage.

For more on how HHSC is supporting rural hospitals, visit the HHSC website.