Appearing together at the state capitol, Gov. Greg Abbott and U.S. Health and Human Services Secretary Robert F. Kennedy Jr. announced the allotment of $500 million to develop rural healthcare in Texas.
The action follows the passage of President Donald Trump’s One Big Beautiful Bill in July, which allotted $50 billion for a Rural Health Transformation Program.
In the new program, all states will be given half of the allotted dollars over the course of five years. The remainder will be distributed to states that fill out an application and submit proposals for how to use the funding.
“We want proposals that will emphasize holistic care, preventative care … physical health, exercise, food, these kinds of things, and rebuilding the infrastructure of these facilities—that sort of thing [will] last for generations,” said Kennedy.
During the press conference, both Abbott and Kennedy emphasized the importance of adequate healthcare for rural communities, celebrating the work of lawmakers during the 89th regular session to address some of these needs.
“More than 190 counties are categorized as rural in the state,” said Abbott. “In those more than 190 counties, we have more than 6 million Texans, Texans who have healthcare needs just like everybody else in the entire state of Texas.”
Starting in fiscal year 2026, Texas will receive $100 million annually for the next five years. Abbott announced that Texas will compete for additional funding, as well.
“This money is truly going to transform what is going on in the delivery of healthcare in the rural settings in Texas,” added Abbott.
Kennedy thanked Abbott for his dedication to the healthcare providers in rural Texas and President Trump for delivering the Rural Health Transformation provision in the One Big Beautiful Bill. He also emphasized the need for more innovation.
“We will strengthen and expand rural health like never before. That is my promise to rural communities, my promise to Texas, and my promise to the American people,” said Kennedy.
The Rural Health Transformation Program will begin in fiscal year 2026 and last until fiscal year 2030, with a total of $10 billion distributed each year.
During the regular legislative session, lawmakers passed House Bill 18, the Rural Health Stabilization and Innovation Act by State Rep. Gary VanDeaver, which allocates nearly $50 million to create new programs and support healthcare access in rural communities.
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