ABOUT THE DEPARTMENT
We ensure that New Mexicans attain their highest level of health by providing whole-person, cost-effective, accessible, and high-quality health care and safety-net services.
Rural Health Transformation Program
Latest News for Providers and Communities
- HCA submitted its grant application to CMS on Nov. 4, 2025. See the full application package linked in the Timeline below.
Overview
The RHT Program (authorized under H.R. 1, Public Law 119-21, Section 71401) is a $50 billion federal initiative to strengthen rural health care and help rural communities improve access, quality, equity, and sustainability of health services.
Over the next five years (FY 2026-2030), CMS will distribute $10 billion per year to awarded states to help improve access, quality, workforce, and sustainability of health care in rural communities.
Total funding available will be allocated via two mechanisms:
- $25 billion distributed equally among all states with an approved application
- $25 billion distributed based on competitive scoring and rural factors
While funding will be allocated to all approved states, there is no guarantee that all state applicants will be awarded. Once allocated, states are anticipated to engage a combination of vendors, health care providers, and other community partners to implement approved initiatives.
RHT Application Requirements:
The application must include:
- Rural health transformation plan with goals delineated in H.R. 1,
- Strategies to manage long-term financial solvency for rural hospitals,
- Identification of specific causes driving the accelerating rate of standalone rural hospitals becoming at risk of closure, conversion, or service reduction,
- A plan to use the funds to carry out three or more permitted activities.
Each state must propose three or more activities it plans to pursue through the Rural Health Transformation Program from the following list:
- Recruit and retain clinical workforce talent to rural areas, with a 5-year commitment,
- Provide payments to providers for health care items or services,
- Develop projects that support innovative models of care (value-based care, alternative payments),
- Promote sustainable access to high quality rural health care services,
- Assist rural communities to right size their health care delivery systems (preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care services),
- Support access to opioid use disorder treatment, substance use treatment, and mental health service,
- Provide training and technical assistance to develop and adopt technology-enabled solutions to improve care delivery in rural hospitals (remote monitoring, robotics, AI),
- Provide technical assistance, software, and hardware for IT advances to improve efficiency, enhance cybersecurity capacity, and improve health outcomes,
- Promote consumer-facing, technology-driven solutions for the prevention and management of chronic diseases, or
- Promote evidence-based, measurable intervention to improve prevention and chronic disease management.
For more details on national program goals, visit CMS’s Rural Health Transformation homepage.
What This Means for New Mexico
- New Mexico must create a Rural Health Transformation Plan by fall 2025.
- With endorsement from the Governor, HCA intends to apply for this opportunity to bring federal resources to our rural counties and support the providers and communities who care for them.
- If awarded, funding will be used to expand rural health services, stabilize critical access hospitals and clinics, grow workforce, and introduce technology solutions intended to improve care and coordination.
- The HCA is working with the Governor’s Office and state agencies to collaborate with partners, stakeholders, health councils, tribal leaders, and others to understand:
- The needs of rural communities,
- Opportunities to lay the foundation for a sustainable, high-quality rural health care delivery system.
Stakeholder Engagement
To build a strong New Mexico application, HCA released a Request for Information(RFI) (Sept. 23 – Oct. 10, 2025) inviting submission of project concepts and initiatives that align with the grant funding priorities and support a competitive state grant application.
The RFI also invited feedback on specific state policy options under consideration for this application.
Timeline
- Aug. 18, 2025 – HCA released RFP for consultant support (closed Sept. 17)
- Sept.15, 2025 – CMS released the Notice of Funding Opportunity (NOFO).
- Sept. 23, 2025 – HCA release RFI for stakeholder input (closed Oct. 10)
- Oct. 21, 2025 – Tribal leaders listening session
- Oct. 22, 2025, 10 a.m. – Public Forum
- Presentation HERE
- See a summary of feedback detailed in the application
- Nov. 4, 2025- NM submitted grant application. See the full RHT grant application package.
- Nov. 5, 2025 – State applications due to CMS.
- Dec. 31, 2025 – CMS announces award decisions.
- FY 2026–2030 – Funding distributed to states annually.
Resources
- CMS Rural Health Transformation Program Homepage
https://www.cms.gov/priorities/rural-health-transformation-rht-program/rural-health-transformation-rht-program
- CMS Notice of Funding Opportunity (NOFO)
RHT Program NOFO – CMS.gov
- CMS RHT Grant Application
- CMS RHT Program Overview slide deck (Aug. 2025)
Rural Health Transformation (RHT) Program Overview - Program Fact Sheet (National Rural Health Association PDF)
RHT Program Summary – NRHA - CMS Press Release & Updates
CMS Newsroom – RHT Program
Email MAHARural@cms.hhs.gov - HCA Request for Proposal (RFP) for vendor consultation (closed Sept. 17)
- HCA Request for Information (RFI) from Stakeholders to Inform Grant Application (released Sept. 23, closes Oct. 10)