(The Center Square) – Michigan is set to receive $173 million in federal funding for rural health programs.
The funding, which is for fiscal year 2025-26 only, is part of the newly-established Rural Health Transformation Program.
“This $173 million grant will help us connect more Michiganders to the care they need and provide essential wraparound supports,” said Gov. Gretchen Whitmer. “In Michigan, we have successfully worked together to protect quality, affordable health care, and we will continue finding ways to secure more federal funds, expand coverage and lower costs.”
The program is meant to strengthen, modernize and expand health care in rural communities. It received bipartisan support during its passage as a part of the One Big Beautiful Bill Act, which was signed into law on July 4, 2025.
In total, the program will dole out $50 billion over the next five fiscal years. It is administered by the Centers for Medicare & Medicaid Services.
Half of the program’s funding is designed to be allocated equally to all states with an approved application, while the other half will be awarded based on specific needs. The program has just begun announcing its first funding awards to states, which will be a minimum of $147 million.
That funding is intended to be used for states to implement comprehensive strategies to improve the health and well-being of rural communities.
Michigan applied for the funding for a number of specific initiatives, including:
• Supporting the development and strengthening of regional partnerships among rural hospitals, clinics and community organizations.
• Recruit and retain rural health professionals, behavioral health providers and community health workers.
• Promote prevention and chronic disease management training and integrated behavioral health care access.
• Implement new technology, including increasing adoption of telehealth.
• Establish digital referral networks that connect residents to local care, prevention and wellness resources.
“Michigan continues to support a resilient and innovative rural health system where every resident has access to high-quality care close to home,” said Elizabeth Hertel, Michigan Department of Health and Human Services director. “Our approved proposal for these federal funds focuses on enhancing the long-term sustainability of rural providers while supporting their growth and continued service to their communities.”
Trump administration officials have promised to put checks in place to ensure states spend the money responsibly.
“Every year, we are going to audit the system and we are going to ask you to do even better than the year before,” said Centers for Medicare & Medicaid Services Administrator Mehmet Oz. “For the folks that do a great job, they are going to get even more money. For the folks that don’t deliver what they promised, they might get some money taken away from them to give to the guys that are doing a great job. This is a competition…Our hope is that we all get healthy in America and no longer will our zip code dictate our life expectancy.”
