(The Center Square) − Louisiana is set to receive more than $208 million in federal funding in fiscal year 2026 under a new $50 billion Rural Health Transformation Program aimed at bolstering care in communities nationwide, according to the Centers for Medicare & Medicaid Services.
“The use of this funding will transform lives through innovative approaches to improve healthcare access in rural communities across the state,” said Secretary Bruce D. Greenstein.
The program, created under the Trump administration’s Working Families Tax Cuts legislation, will distribute $10 billion a year from 2026 through 2030, with first-year state awards averaging about $200 million and ranging from roughly $147 million to $281 million, CMS said.
CMS Administrator Mehmet Oz said the funding is meant to help states expand rural access and modernize care delivery.
Louisiana has around 1.1 million residents who live in rural areas, and state officials have pointed to widespread provider shortages and chronic disease burdens outside the state’s urban cores.
The Louisiana Department of Health says 44 of 64 parishes are fully or partially rural, and about 29.1% of Louisianans live in rural areas. The state estimates 73% of residents live in a primary-care shortage area, 93% in a mental-health shortage area and 86% in a dental-health shortage area.
In its application for federal funding, the Department of Health said its plan to widen access includes six initiatives spanning workforce expansion, technology and data-sharing, value-based payment models, prevention and nutrition-based interventions, care integration for high-needs populations and capital support for essential services.
LDH’s timeline shows the state submitted its application Nov. 4, with first-year funds expected to be distributed in January, followed by state funding opportunities for on-the-ground projects later that month.
