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Texas to obtain $281 million in federal funds for rural well being care

December 30, 2025
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The Seymour Hospital on June 30, 2025. The town of Seymour is about 50 miles southwest on Wichita Falls.
The Seymour Hospital on June 30, 2025. The city of Seymour is about 50 miles southwest on Wichita Falls. Credit score: Texas Tribune / Shelby Tauber

Texas will probably be receiving the most important slice of the federal authorities’s first rollout of a $50 billion fund created to fortify rural well being care throughout the nation. 

On Monday, the Trump administration introduced the way it plans to allot billions of {dollars} to states over the course of 5 years from its federal Rural Well being Transformation Program — the fund Congress created earlier this yr after approving the One Massive Stunning Invoice Act. That laws, in tandem with creation of the fund, slashed Medicaid funding by an estimated $1 trillion.

States made bids to obtain parts of the one-time federal funding and Texas, based on the Facilities for Medicare & Medicaid Companies, is slated to obtain greater than $281.3 million for the primary yr of this system in 2026. That’s round $81 million greater than what the state requested for in its utility.

Alaska is getting the second greatest portion of $272.7 million a yr. 

Whereas Texas is receiving essentially the most funds, its rank lags in comparison with its inhabitants. Half of the federal {dollars} will probably be distributed equally to every state. Texas, which has essentially the most rural residents of any state, will obtain about $60 per resident in a rural county — the bottom price within the nation.

“Greater than 60 million People residing in rural areas have the suitable to equal entry to high quality care,” U.S. Well being and Human Companies Secretary Robert F. Kennedy Jr. mentioned in a information launch. “This historic funding places native hospitals, clinics, and well being employees in command of their communities’ healthcare.” 

The funds come as price range shortfalls and rising prices have compelled Texas’ rural hospitals and clinics into a major well being care disaster. 

The necessity for well being care in rural communities can be greater as a result of they have an inclination to have greater uninsured charges; 76 counties in Texas have uninsured charges over 20%, and 60 of these counties are in rural areas, based on a report from the Nationwide Institute of Well being. 

The NIH additionally discovered that “deaths from most cancers, coronary heart illness, respiratory illness, and unintentional harm are greater in rural Texas than Texas total,” and that “indicators of well being outcomes are worsening in rural Texas populations.” 

“Rural Texans throughout the state will profit from this historic federal funding,” Gov. Greg Abbott mentioned in a press launch. “We are going to strengthen our rural hospitals, broaden entry to important psychological and bodily well being care, and assist cut back power illness by means of wellness and diet initiatives.”

The state’s well being care company mentioned it’ll use the funds to strengthen rural well being care clinics in a wide range of methods, together with: creating wellness and diet packages to rural suppliers; educating and attracting well being care professionals to work in rural areas; and modernizing assets and expertise in rural facilities. 

Extra particularly, it plans to “add greater than a thousand rural well being care” positions with the extra funds. 

For some Texas hospitals, the funding could also be a lifeline. 

Erin Clevenger, CEO of Memorial Medical Heart in Port Lavaca, southeast of Victoria, mentioned in October to KERA that her hospital was getting ready to closing. “Daily is a battle to ensure we don’t turn out to be a type of statistics,” she mentioned.

Fourteen rural hospitals in Texas closed within the final decade, based on a report from the Heart for Healthcare High quality and Fee Reform, and over half of the remaining hospitals — 82 amenities — have been susceptible to closing. And 21 hospitals have been at “instant threat of closing.”

Rural hospitals have been pushed to chop their costliest companies: labor and supply companies. Virtually 60% of rural Texas hospitals don’t ship infants, leaving giant swaths of the state and not using a close by place to present beginning. 

Between 2010 and 2022, Texas misplaced a dozen rural obstetrics models, based on the College of Minnesota Rural Well being Analysis Heart, and one-fifth of people who stay are susceptible to closing.

Dan Keemahill contributed to this story.

This text first appeared on The Texas Tribune.

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