Unlock $50B in Rural Health Transformation funding: Learn what RHTP is, who’s eligible, where states are now, and how to get grant-ready fast.
You may have heard about the rural health transformation program (RHTP) and wondered how it could help you. As more grants open across the states, we have details, next steps and how CLA can assist.
What is the Rural Health Transformation Program?
The RHTP is a pool of $50 billion originating under the One, Big, Beautiful Bill Act. It is targeted at transforming rural health care. The dollars are available to states — $10 billion distributed each year for five years — under cooperative agreements.
All states applied to the federal Department of Health and Human Services (HHS) in late 2025 and were approved for funds. Funds are distributed to the state annually for five years starting with 2026. See each state’s 2026 funding allotment.
What is the purpose and focus on the RHTP?
As its name states, the purpose is to transform rural health care. The focus of doing so is through improved care delivery and access, advancing workforce development, technology innovation, and care innovations in a sustainable manner. None of the funding is to be used to replace existing funding or reimbursements.
When applying for the RHTP funds, states outlined how they intended to use funds for transformation in their respective state. Each state is required to pursue at least three or more of 10 approved uses, focused on:
- Improving chronic disease management and outcomes
- Strengthening long-term financial sustainability
- Enabling technology-based care and innovations
- Building data and IT infrastructure
- Extending workforce capacity
While these are nationally overarching themes for transformation, each state will have its own unique plan, including who will be eligible, what programs or approaches used, allowable uses of funds, and mechanisms to distribute funds, among others.
The bottom line is that every funding opportunity in every state will be unique. This means it will be important to start planning for how your organization could use RHTP funds. CLA can help.
Who is eligible?
Generally, the funds are targeted at health care providers, but this is decided by each state. Many states are targeting all types of rural entities — rural hospitals, federally qualified health centers, behavioral health centers, and others — though some are not limiting eligibility solely to “rural” providers. In addition, there may be opportunities in some states for vendors to serve as collaborators or technical assistance providers.
The bottom line is that every grant program or opportunity in every state will be unique. This means it will be important for you to start planning now for how your organization could use RHTP funds.
Where is the RHTP grant process right now?
Since 2026 is the first funding year, states are moving rapidly. Several states have distributed some funds already. Other states have open funding opportunities while other states are still standing up internal RHTP program operations, hiring staff, assembling RHTP advisory committees, holding public webinars and announcing general timelines for release of 2026 funding opportunities.
We expect a rapid succession of state activity in the late spring and summer on funding.
How can CLA assist with digital, cyber, revenue cycle, and grants management?
Multiple core areas of RHTP funding targeted are in our wheelhouse. From financial modeling and revenue cycle to digital and cybersecurity to grant writing and management, we are actively talking and working with health care organizations on these opportunities. Review some of the ways we can assist with grant-aligned services.
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Grant Support |
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Grant-ready technical advisory and implementation support |
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Financial Modeling, Digital Strategy, and Prioritization Matrix Assessments |
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Digital EyeQ: AI driven assessment |
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Technology readiness assessment and transformation roadmap |
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Strategic financial modeling and sustainability analysis |
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Software |
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System selection advisory (EHR, ERP, analytics platforms) |
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Data Infrastructure |
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Data infrastructure and systems integration |
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Reporting |
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Analytics, dashboards and outcomes reporting |
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AI |
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AI readiness strategy and governance |
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Cybersecurity |
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Cybersecurity risk assessment, governance and roadmap |
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Automation |
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AP automation |
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Revenue cycle reconciliation |
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Denials management |
What should I do next, and how can CLA help?
Time is important. We expect funding opportunities to grow over the next few months. Here are steps for you to take as you prepare:
- Understand where your state is in the process of RHTP
- Watch for grant opportunities and review any current open RHTP grants in your state(s)
- Launch or continue your planning process with internal teams (leadership, IT, finance, population health, clinical)
- Develop a list of RHTP use priorities and how those align to the RHTP grant requirements in your state
- Reach out to CLA: We can assist with planning sessions, services, and grants writing and compliance