The Rural Health Transformation Program: a leader’s guide to funding modern, secure infrastructure
The Rural Health Transformation Program (RHTP) is a $50 billion federal program, run by CMS, that pays states $10 billion a year from 2026 through 2030 to transform rural health care. Each state decides who receives the funds, and technology, including the networks telehealth and EHRs run on, is an approved use.
This guide explains how the program works, how funds reach your facility, and how to turn aging network equipment into a funded, sustainable plan.
What is the Rural Health Transformation Program?
The Rural Health Transformation Program (RHTP) is a five-year federal program created by the 2025 budget reconciliation law. CMS awarded the money to states, and each state is now distributing it under its own plan. Three things matter most for leadership teams:
You apply to your state, not CMS
Each state sets eligibility, timelines and how funds are distributed: direct grants, procurement portals or regional hubs.
Technology is an approved use
Software, hardware and technical assistance that improve efficiency, cybersecurity and patient outcomes are allowable.
It funds transformation, not operations
Funding ends in 2030. Strong requests show lasting improvement and a plan to run what they buy afterward.
The guide, in seven parts
Read in order, or jump to the question your board is asking. New parts are added as the program evolves.
Stage 1 · Understand the program
What is the Rural Health Transformation Program (RHTP)?
The dollars, the timeline, who controls distribution and where technology fits. Start here if RHTP is new to your team.
Read Part 1 Part 2 · Available nowThe One Big Beautiful Bill and rural hospitals: where the $50 billion fits
What the 2025 law changes for rural providers, what the transformation fund is and isn't, and why planning now matters.
Read Part 2Stage 2 · Find the funding
How RHTP funding reaches your facility: grants, eligibility and timing
State agencies, subgrant cycles, procurement portals and what a technology request needs to show.
Read Part 3 Part 4 · Available nowFunding beyond RHTP: HRSA, USDA and FCC programs
Other federal programs that can help pay for connectivity and equipment, and how to stack them with RHTP.
Read Part 4Stage 3 · Build the case
Why the network comes first
Telehealth, EHR, remote monitoring and connected devices all depend on reliable, secure infrastructure.
Read Part 5 Part 6 · Available nowIs your network a liability?
End-of-support routers, firewalls, switches and access points, framed as cybersecurity, compliance and patient-safety risk.
Read Part 6 Part 7 · Available nowBuilding the business case: ROI beyond the grant
Total cost of ownership, staff time, downtime avoided and what your network costs to run after 2030.
Read Part 7RHTP in your state
Every state wrote its own plan, and each one sets its own priorities for technology. Year-one award shown.
New York
$212M$79.5M initiative for technology innovation and cybersecurity resilience
New Hampshire
$204MTechnology innovation area includes data security and cybersecurity
Vermont
$195MShared-services network with a shared EHR and remote monitoring
Maine
$190M~$30M for EMR modernization, with connectivity and cybersecurity in scope
Massachusetts
$162MInnovative technology is one of five state priorities
Rhode Island
$156M$16.7M for rural health IT modernization and connectivity
Connecticut
$154MHospital grants include equipment upgrades and telehealth capacity
Figures from state and CMS announcements, checked October 2026. Programs change often; sources are listed in Part 1.
Five steps to get RHTP-ready
Most first-round deadlines fell between May and August 2026. These steps prepare your facility for the next round.
- Sign up for your state's RHTP updates. Some application windows have been only a few weeks long.
- Inventory your network. Know the age, support status and security posture of every router, firewall, switch and access point.
- Tie technology to outcomes. Connect each upgrade to access, quality, security or efficiency, which states must report.
- Plan for year six. Choose solutions you can afford to operate and support after 2030.
- Line up partners early. Grant writers and technology advisors take time to engage.
Frequently asked questions
What is the Rural Health Transformation Program?
A $50 billion federal program, run by CMS, that funds states to transform rural health care from 2026 through 2030. States distribute the money to providers and partners under their own plans.
Can RHTP funds pay for network equipment?
One approved use covers software, hardware and technical assistance for IT advances that improve efficiency, cybersecurity and patient outcomes. Whether a specific purchase qualifies depends on your state's plan and the solicitation you apply under.
Can my facility apply directly to CMS?
No. CMS awarded the funds to states. Providers apply through their state's lead agency, a state procurement portal, or a regional hub the state designates.
Is it too late if we missed the first round?
No. The program runs through federal fiscal year 2030 and states issue new opportunities each year. An infrastructure assessment now positions you for the next round.
Is CoreDefense affiliated with CMS or a state agency?
No. CoreDefense is an independent, vendor-neutral network and security partner. We help facilities prepare technology plans; funding decisions rest with each state.
Know where your network stands before the next round
An RHTP infrastructure readiness assessment documents equipment age, support status, security gaps and costs, and maps upgrades to your state’s priorities.
CoreDefense is an independent, vendor-neutral network and security partner, not affiliated with CMS or any state agency. Funding decisions rest with each state.