Medium
Medium

Overview

The One Big Beautiful Bill Act (Section 71401) creates a new Rural Health Transformation grants program administered by the Centers for Medicare and Medicaid Services (CMS), allocating $50 billion nationwide from federal fiscal years 2026 through 2030 — $10 billion annually. Funds will flow through states, which must submit a Rural Health Transformation Plan to CMS by Dec. 31, 2025, to access and manage these resources.

North Dakota is expected to receive approximately $100 million per year, totaling $500 million over five years, to improve rural health care access, quality, and sustainability.

Medium

What is the Rural Health Transformation Plan?

States must submit a one-time application to CMS, including a plan that outlines how the state will:

  • Improve access to hospitals, providers, and health care services for rural residents

  • Enhance health outcomes for rural communities

  • Use emerging technologies focused on prevention and chronic disease management

  • Strengthen partnerships between rural hospitals and providers to improve quality and financial stability

  • Support recruitment and training of rural health care clinicians

  • Prioritize data-driven solutions and technology to deliver high-quality care close to home

  • Address financial solvency and operating models of rural hospitals

  • Identify causes driving hospital closures, conversions, or service reductions

 Eligible Activities

States must fund at least three or more designated activities.

  • Evidence-based prevention and chronic disease management interventions

  • Payments to providers for specified services

  • Consumer-facing technology solutions for chronic disease management

  • Training on advanced tech such as remote monitoring, AI, and robotics

  • Recruiting and retaining rural clinical workforce with service commitments

  • IT upgrades improving efficiency, cybersecurity, and outcomes

  • Helping communities optimize health care delivery systems

  • Expanding opioid use disorder, substance use, and mental health services

  • Innovative care models including value-based care and alternative payments

  • Other CMS-approved activities to ensure sustainable rural health care

     

North Dakota’s Outreach and Engagement

As we await CMS guidance, HHS is actively engaging with stakeholders to gather feedback on shaping the state's Rural Health Transformation Plan. HHS expects to receive guidance from CMS in Fall 2025.

 

Take the Survey

We invite rural patients and residents; hospitals, clinics and provider networks; community-based organizations, tribal partners and other stakeholders to participate in our survey and share your input. Your feedback is critical to shaping the plan to best serve North Dakota’s rural communities. The survey takes 15-20 minutes to complete. The information gathered will be used for planning and information-gathering purposes only. Deadline to respond is Sept. 12, 2025. 

Opens August 2025 

Take Survey