(The Center Square) – Louisiana plans to use the first wave of its new federal Rural Health Transformation Program funding to expand the rural health workforce, build out telehealth and digital systems, support new care-delivery models and make capital improvements at rural facilities, according to internal state documents.
The Louisiana Department of Health was awarded $208.4 million for the first year of the grant program, with the state estimating the award could total roughly $1.4 billion over five years if Louisiana meets federal performance benchmarks. State officials have described the Year 1 award as one of the largest in the country.
In internal planning documents, LDH said the money is intended to address longstanding access gaps in rural communities.
“Every rural Louisianian deserves the same high-quality health and health care as anyone else in our state. Through a five-year investment, we are building sustainable access to care so rural communities can thrive – today and for generations to come,” the department said.
The funding stems from Section 71401 of the federal Reconciliation Bill, which set aside $50 billion over five years for rural health infrastructure, workforce and access. Half of that money is split evenly among states, while the other half is awarded based on rural health data, application quality and state policy actions. Future funding will depend in part on how well states spend the money and what outcomes they can show each year.
In Louisiana, the need is especially acute. Forty-four of the state’s 64 parishes are fully or partially rural, and about 29.1% of the population lives in rural areas. Rural adults in Louisiana also face higher rates of chronic illness than their urban counterparts, including higher rates of heart disease, diabetes, obesity and tobacco use.
While the total Year 1 award exceeds $208 million, LDH is initially seeking $25 million in budget authority for the remainder of the 2026 fiscal year to begin rolling out the program, according to a budget request reviewed by the Joint Legislative Committee on the Budget.
Of that first tranche, nearly $22.7 million would go toward six major initiatives: $5.2 million for rural workforce expansion, including recruitment and retention grants, education partnerships and “grow your own” career pipeline programs; $5.7 million for technology modernization, including telehealth expansion, digital literacy efforts and a rural technology fund; about $3.4 million for innovative care-delivery models, including value-based payment pilots and programs for hard-to-reach patients; about $680,895 for community-based nutrition and fitness partnerships; about $3.63 million for coordinated care networks aimed at high-needs populations; and about $4.09 million for capital improvements at rural health facilities.
Another $2 million would be transferred to Medicaid to help procure a statewide electronic health record system that rural providers could use, with Medicaid serving as the lead agency on the purchase. The remainder would cover administrative startup costs, including staffing, travel, office expenses and supplies needed to stand up the office overseeing the grant.
LDH’s internal plan shows the state intends to move quickly. Federal officials, Gov. Jeff Landry and LDH Secretary Bruce Greenstein expect spending to begin early because Louisiana’s allocation in future years could hinge on whether the state can show progress from the start.
