The Centers for Medicare & Medicaid Services (CMS) announced yesterday (Monday) that Iowa will receive over $209 million as part of a nationwide $50 billion investment to strengthen health care in rural America. The funding comes through the Rural Health Transformation Program that was created under President Trump’s Working Families Tax Cuts legislation. All 50 states will receive awards beginning in 2026, with first-year funding averaging about $200 million per state. The initiative is designed to expand access to care, strengthen the rural health workforce, modernize facilities and technology, and support innovative care models. Iowa Governor Kim Reynolds says, “This program is an incredible opportunity to advance health care in rural Iowa. We’re grateful to the Trump Administration for this investment in our state, and we’re ready to innovate care delivery in ways that improve health, well-being, and quality of life for Iowans statewide.” Iowa’s plan, known as Healthy Hometowns, focuses on supporting rural hospitals, building regional health hubs, recruiting providers, expanding telehealth, and preventing and treating chronic disease and cancer. The state requested $200 million annually over five years and was awarded $209,040,064 for the first year. Iowa is expected to receive over $1 billion in Rural Health Transformation Program funding over the next five years.
