Governor Abbott, HHSC Announce $44 Million in Grant Funding for Rural Hospitals
January 28, 2026 – Governor Greg Abbott on Tuesday announced that the Texas Health and Human Services Commission (HHSC) will make $44 million in grant funding available to eligible hospitals serving rural communities across the state, an effort aimed at stabilizing facilities facing financial challenges and expanding access to health care in underserved areas.
The funding will be distributed through the Rural Health Financial Stabilization Grant, which is designed to support rural hospitals identified by HHSC as being at moderate or high risk of financial instability. Award amounts will vary based on each hospital’s demonstrated need, according to state officials.
“Texas relies on hardworking rural communities to keep our great state thriving,” Abbott said in a statement. “This grant will strengthen qualifying rural hospitals with the financial assistance they need to support their fellow Texans. Together, we will expand access to rural healthcare and build a healthier, stronger Texas of tomorrow.”
HHSC administers the grant program as part of its broader Rural Hospital Services Strategic Plan, which focuses on maintaining hospital services in rural areas where closures and staffing shortages have increasingly threatened access to care. State officials say the funding can be used to help hospitals address operating shortfalls, improve service delivery, and maintain essential health care infrastructure.
HHS Executive Commissioner Stephanie Muth praised the investment, calling rural hospitals a critical component of the state’s health care system. “Rural hospitals are an integral part of the Texas health care infrastructure,” Muth said. “These grants will strengthen long-term stability while expanding access to care and improving health outcomes in rural communities statewide.”
Eligible rural hospitals must complete the Rural Health Financial Stabilization Grant form by February 5 to be considered for funding. HHSC officials encouraged facilities to apply promptly, noting the time-sensitive nature of the application process.
Additional details about the grant program and other rural hospital assistance initiatives are available on the HHSC Rural Hospital Finance Assistance webpage.
