Governor Abbott, HHSC Announce $99 Million In Federal Funding For Rural Hospitals To Recruit Workers
April 30, 2026 – AUSTIN, Texas — Greg Abbott announced Tuesday that the Texas Health and Human Services Commission (HHSC) will distribute $99 million in federal funding to support rural hospitals across the state, aiming to strengthen workforce recruitment and retention in underserved communities.
The funding is part of the state’s Rural Texas Strong plan and will back a new initiative titled “Next Generation of the Small Town Doctor and Team.” State leaders say the effort is designed to address persistent staffing shortages that have strained rural health systems for years.
“Accessible care for all Texans is vital for the sustained success of our state,” Abbott said in a press release. “This grant will provide rural hospitals with the tools they need to retain and recruit the next generation of health care workers.”
The initiative allows hospitals and providers to use the funds in several ways, including developing scholarship programs for local high school students interested in health care careers, offering relocation and signing bonuses to attract providers, and establishing new residency training programs in partnership with academic institutions.
HHSC Executive Commissioner Stephanie Muth emphasized the broader impact of the investment on rural communities.
“Strong rural health care systems are essential to the well-being of families and communities across Texas,” Muth said. “This investment supports the doctors, nurses and care teams who serve rural Texans every day.”
Eligible licensed rural health providers will be able to apply for the funding through a competitive grant process. Applications are due by May 27, according to HHSC.
The $99 million allocation represents part of a larger $281 million first-year award Texas received through the Centers for Medicare & Medicaid Services Rural Health Transformation Program. The initiative is fully federally funded and includes six programs aimed at improving access to care in rural areas.
State officials estimate Texas could receive approximately $1.4 billion over five years through the program, contingent on meeting federal requirements.
Officials say additional updates, including public notices and procurement opportunities tied to Rural Texas Strong, will be shared through state communication channels and procurement websites.
The funding marks one of the largest recent investments in rural health care workforce development in Texas, reflecting ongoing concerns about provider shortages and hospital sustainability in less populated regions.
