(The Center Square) — New Hampshire has won a $204 million grant from the federal government to help overhaul its rural health care system ahead of looming cuts in Medicaid funding.
The Centers for Medicare & Medicaid Services announced on Monday that it is distributing $50 billion to states from its Rural Health Transformation Program as part of broader efforts to “strengthen and modernize health care” in rural communities across the country.
Gov. Kelly Ayotte touted that New Hampshire’s grant was the largest among New England states that received funding in the first round of grant distributions.
“We did this the New Hampshire way — with input from our providers, community health and mental health centers, other rural health stakeholders, and feedback from Granite Staters, and the hard work paid off,” Ayotte said in a statement. “This is the beginning of a bold effort to expand access to affordable, high-quality care closer to home for Granite Staters in rural communities.”
Ayotte said she has created a new Office of New Opportunities & Rural Transformational Health, or GO-NORTH, to oversee implementation of the program. Her administration said New Hampshire’s Rural Health Transformation Grant application was put together with input from more than 300 stakeholders, including hospitals, rural health care providers, community health centers and feedback from residents.
“It was important that the Department hear from as many stakeholders as possible as we worked to transform rural health care delivery in New Hampshire,” Lori Weaver, commissioner of the state Department of Health and Human Services, said in a statement. “I am grateful to all who provided input and look forward to working together to implement our plans and meet our goals.”
President Donald Trump’s One Big Beautiful Bill Act, which he signed in July, includes Medicaid funding cuts and policy changes that critics say could force closures and reductions in care at rural hospitals, which were already struggling to stay afloat amid razor-thin operating margins and other financial stress.
Concerns about the impact on rural health prompted lawmakers to create a $50 billion safety-net fund for rural hospitals. Those funds will be distributed by the Centers for Medicare and Medicaid Services over five years, with $10 billion available annually.
The Trump administration launched the Rural Health Transformation Program on Sept. 19, calling it an “unprecedented” effort to “transform” rural health care across the country. In the first round of funding, states will receive awards ranging from $147 million to $281 million, according to CMS. New York is getting $212 million, while Massachusetts is getting $162 million, the agency said. Maine will get $190 million and Rhode Island $156 million.
“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Health and Human Services Secretary Robert F. Kennedy, Jr., said in a statement Monday. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ healthcare.”
