The U.S. Centers for Medicare and Medicaid Services (CMS) has announced that the state of Utah will receive more than $195 million in fiscal year 2026 under the Rural Health Transformation Program.
The $50 billion national initiative, established under the Working Families Tax Cuts legislation, also known as the One Big Beautiful Bill Act, is designed to modernize health care delivery in rural communities across the country.
“This is a historic opportunity to make generational investments in the health and wellness of rural Utahns,” said Tracy Gruber, executive director of the Utah Department of Health and Human Services (DHHS). “We look forward to partnering with our state’s rural health systems to expand access to high-quality care, modernize infrastructure and grow our essential clinical workforce.”
In 2026, all 50 states will receive first-year awards ranging from $147 million to $281 million. According to DHHS, the federal funding will be used by the state to increase availability of primary, maternal and behavioral health services; upgrade rural facilities with advanced digital tools and telehealth infrastructure; improve recruitment and retention for health professionals in rural areas; and implement community-focused models like improving access to locally sourced foods and school-based wellness programs to prevent chronic disease.
With 25 of Utah’s 29 counties designated as rural, the need for targeted, locally driven solutions is clear, a DHHS release said. Many Utahns living in rural counties may travel more than an hour to receive hospital care and four to six hours one way to see a specialty provider. Adults in frontier counties experience the state’s highest rates of diabetes and high blood pressure, and the share of rural and frontier Utahns reporting poor mental health in the past 30 days has increased by 47 percent since 2015.
By reducing administrative barriers and strengthening local control, the program is designed to improve health and well-being and ensure dependable health care remains closer to home for Utah families, DHHS said.