AUSTIN, Texas (Jan. 12, 2026) – In late December the Centers for Medicare & Medicaid Services announced that Texas is receiving more than $280 million from the federal Rural Health Transformation Program, which is dividing $50 billion across all 50 states. Overall, Texas received $281,319,361 in Rural Health Transformation funds following the November submission of the state’s application, titled Rural Texas Strong.
“An earnest focus on getting dollars directly to rural hospitals gives us great hope,” said John Hawkins, THA president/CEO. “New funding can only help, as rural hospitals constantly battle closure risks, tight margins and debt, limited reserves, payer roadblocks, and now, significant cuts to Medicaid. They are on a constant and financially distressing highwire.
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“That said, the proof will be in the details. The dollars need to be focused on hospitals, which took the brunt of the Medicaid cuts. They need to come quickly without unnecessary administrative hurdles. They need to be self-sustaining, flexible and not create new burdens. We’re grateful that Texas was prioritized in the allocation, given the vastness of our state’s rural geography and population.
“In Texas, working with our state leadership, hospitals will ensure high-value return on these public dollars and use them to protect our vulnerable rural patients and communities. Texas has long prioritized rural health care with an emphasis on hospitals, and we know every effort is being made to ensure these dollars will bring meaningful support to rural communities.”
John Hawkins
President/CEO
Texas Hospital Association
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Texas Hospital Association
Founded in 1930, the Texas Hospital Association is the leadership organization and principal advocate for the state’s hospitals and health care systems. Based in Austin, THA enhances its members’ abilities to improve accessibility, quality and cost-effectiveness of health care for all Texans. One of the largest hospital associations in the country, THA represents more than 85% of the state’s acute-care hospitals and health care systems, which employ some 400,000 health care professionals statewide.