Trump Administration Announces Historic $50 Billion Investment to Fix Rural Healthcare Crisis

Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), announced on Tuesday that the Trump administration is making the largest federal investment in rural healthcare history—a $50 billion initiative designed to address systemic gaps left by decades of underfunding.

The program, called the Rural Health Transformation Program, will distribute funds to all 50 states through CMS starting in 2026. Initial allocations are projected at an average of $200 million per state, with a focus on expanding access to care, strengthening rural health workforces, modernizing medical facilities, and supporting telemedicine innovations.

Oz emphasized that rural communities have steadily fallen behind urban areas in health outcomes, with location now a critical factor in life expectancy. “Rural areas have fallen further and further behind,” he stated, noting the investment is not a temporary fix but a necessary restructuring of the healthcare system to ensure equitable care.

The initiative, established under President Donald Trump’s Working Families Tax Cut legislation, aims to help at least 60 million Americans who lack access to services typically available in urban settings. Oz urged states to compete for funding by implementing reforms that eliminate barriers such as telemedicine restrictions.

Additionally, Oz addressed rising flu cases linked to a new influenza strain, particularly in New York, where state officials recently reported 71,123 cases and a 63% increase in hospitalizations. He highlighted the importance of sleep, nutrition, and vitamin D during winter months to bolster immune health.