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U.S. Senator Jerry Moran announced that states can now apply for funding from the $50 billion Rural Health Transformation (RHT) Program, created in the Reconciliation Bill. The program directs the Centers for Medicare and Medicaid Services (CMS) to work with states to address challenges in rural health care and invest in solutions. Kansas providers are expected to receive about $1 billion over the next five years.

Each state may submit a one-time application, with no matching funds required. Funding totals $10 billion annually from 2026 through 2030. Eligible recipients include rural hospitals, community health centers, opioid treatment programs, and mental and behavioral health clinics. States must submit detailed plans to improve access to care, and CMS will monitor progress. Applications are due November 5, 2025, with awards announced by December 31.

Kansas will soon outline its application process, and CMS is hosting an informational webinar today from 2:00–3:30 p.m. CT.

Separately, CMS approved raising Kansas’ hospital provider tax from 3% to 6%. This will generate more Medicaid matching funds and is expected to bring in about $1 billion annually for hospitals and physicians.

More information can be found here.