State gets $209 million for rural health under OBBBA
The state of Arkansas is receiving $208,779,396 for fiscal year 2026 for rural health programs through President Trump’s Rural Health Transformation Program, Gov. Sarah Sanders announced Tuesday (Dec. 30).
Through the Rural Health Transformation Program, the federal Centers for Medicare and Medicaid Services will distribute $50 billion to the 50 states over the next five years, the press announcement said. The funding came from the One Big Beautiful Bill Act passed by Congress earlier this year after cuts were made to the federal Medicaid program.
“The goal is not simply to stabilize rural healthcare but to redesign it from the ground up around prevention, connected systems, and empowered communities,” the application states. “Five years from now, Arkansas’ rural communities will be stronger, healthier, and more connected than ever. Local clinics will operate in partnership with regional networks rather than in isolation. Children will grow up with real food, physical activity, and routine preventive care. Healthcare professionals will choose to build their careers in rural Arkansas because professional growth, community support, and a sense of belonging are deeply intertwined.”
The state submitted its application to the Centers for Medicare and Medicaid Services Oct. 31. Additional federal awards to the states will be announced in future funding rounds. The state’s application focused on four initiatives. Funding amounts dedicated to each will be announced later.
One is Healthy Eating, Active Recreation, and Transformation. The HEART program will focus on improving health outcomes and access to preventive care through a coordinated, community-driven approach to nutrition, physical activity and chronic disease management, the release said.
According to the state’s application, the HEART initiatives include, among others, GROW Kids (Growing Resilient, Optimally Well Kids) which uses preventative education and wellness programming to help children build lifelong healthy habits; FARM (Food Access & Regional Markets), which seeks to improve access to healthy foods; MOVE (Mobilizing Opportunities for Vital Exercise), which seeks to help Arkansans be more physically active; and FAITH (Faith-based Access, Interventions, Transportation, & Health), which partners with faith-based institutions to connect rural residents to health services.
The second initiative is Promoting Access Coordination and Transformation. The PACT program seeks to integrate specialty care, preventative health screenings, telehealth, and trauma-ready services into rural areas.
The programs within the initiative include ACCESS (Advancing Care Capacity, Engagement, and Screening Services), which expands speciality, preventative and telehealth services in underserved regions; SAFE (System Acquisition & Facility Enhancement) Fund, which supports strategic hospital and system partnerships; and CINC (Community Integrated Networks for Care), which develops locally driven, clinically integrated networks.
The third initiative is Recruitment Innovation Skills and Education for Arkansas. Its major programs include PATHWAY (Preparing Arkansas Talent for Health Workforce Advancement Yield), which expands graduate medical eduction slots, residencies, scholarships and training; and RETAIN (Recruit, Educate, Train, Advise, Integrate, Nurture), which provides recruitment, relocation and mentorship incentives.
The fourth initiative is Teleheath Health Monitoring and Response Innovation for Vital Expansion. THRIVE will leverage artificial intelligence to coordinate patient records across delivery systems, use technology to monitor chronic disease, and modernize emergency medical transport and services.
Its major programs include HOME (Health Outcomes through Monitoring & Engagement), which will create pilot programs to monitor chronic diseases remotely, and TECHFund, which will invest in telehealth infrastructure.
Sanders and the Arkansas Department of Finance and Administration had submitted the state’s application Oct. 31 after incorporating feedback from medical providers, higher education institutions, and community-based non-profits. More than 300 ideas were submitted through an online portal.
The state’s application said that roughly 45% of the state’s population lives in a rural area, with 30 of its 47 rural hospitals at risk of closure, 11 in immediate risk of insolvency, and 79% of the hospitals operating at a loss on patient services. Four have closed since 2015, and several have stopped providing obstetrics or inpatient services. Only 25 of the state’s 75 counties still have labor and delivery units, with rural maternal mortality rates double those of urban areas. Rural Arkansans travel an average of 25-35 miles to be served by the nearest hospital or specialty clinic.
“Today’s announcement shows that President Trump and his administration place a priority on improving rural health and Making America Healthy Again,” said Gov. Sanders. “Our state went above and beyond in the application process to secure an outsized portion of the funds available through the Rural Health Transformation Program because we know that Arkansas’ smaller communities deserve just as much support as any other region of our state. I’m excited to get to work quickly on Arkansas’ innovative approach to this program and deliver the care our people deserve.”
U.S. Sen. John Boozman, R-Ark., released a statement saying, “I’m pleased this critical funding to support rural health is headed to Arkansas and was proud to join our congressional delegation to secure it. We look forward to seeing it implemented to strengthen and improve medical care in communities across our state.”