Texas is awarding $44 million in grant funding to struggling rural hospitals in the state, Gov. Greg Abbott’s office said in a Jan. 28 news release.
Rural hospitals can apply for funding through the state’s Rural Health Financial Stabilization Grant programs. The Texas Health and Human Services Commission said eligibility and award amounts will depend on a facility’s financial need. Grant forms from qualifying hospitals are due by Feb. 4.
In 2024, rural hospitals were awarded $17 million through the program. Awards from that round ranged from $100,000 to $375,000 over a two-year period.
The grant funding is separate from CMS’ $50 billion Rural Health Transformation Program, which launched this year and runs through 2030. Texas received $281 million under the program — the largest award nationwide — but hospitals have limited visibility into how those dollars will be used. The federal funds are administered by states and not required to flow directly to providers, a structure that’s raised concerns among rural hospital leaders.
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