HRSA Announces Nearly $140 Million in New Funding to Improve Health in Rural Communities

The Health Resources and Services Administration (HRSA) has announced nearly $140 million in new funding to improve health in rural communities, reaffirming the agency’s commitment to expanding healthcare access and outcomes across underserved areas.
“Healthy rural communities are essential to achieving President Trump’s directive to Make America Healthy Again,” said HRSA Administrator Tom Engels. “By strengthening rural health care systems, expanding access to quality care, investing in telehealth innovation, and supporting the rural health workforce, HRSA is helping ensure that people living in rural America have the opportunity to lead healthier lives.”
What This Means for Healthcare Organizations
The funding was announced at Madison County Memorial Hospital, a designated Critical Access Hospital in Winterset, Iowa, and builds on President Trump’s historic investments in rural health under the Great American Recovery Initiative.

Funding Breakdown

$64 Million for Rural Substance Use Prevention, Treatment, and Recovery

The Rural Communities Opioid Response Program (RCORP) will receive $60 million for implementation-focused grants and $4 million for planning grants, supporting rural communities in expanding prevention, treatment, and recovery services for opioid and substance use disorders.

$11.25 Million to Expand Rural Medical Residencies

The Rural Residency Planning and Development Program will fund the creation of new accredited rural residency programs, addressing persistent physician workforce shortages by increasing the likelihood that physicians trained in rural settings will remain there to practice.
$7+ Million to Strengthen Rural Health Networks

Three funding opportunities totaling more than $7 million will support rural provider collaboration and network sustainability — including a first-of-its-kind pilot initiative for integrated networks of independent rural hospitals and clinics.

Funding Breakdown

Nearly $10 Million for Telehealth Innovation

Two grants will advance technology-enabled care delivery, including $5.4 million for a Telehealth Nutrition Services Network and $4.275 million for a Technology-enabled Collaborative Learning Program, connecting rural populations to high-quality services regardless of geography.

What This Means for Healthcare Organizations

For rural providers — particularly Critical Access Hospitals, FQHCs, and independent rural clinics — these funding opportunities represent meaningful support for workforce development, network sustainability, and telehealth infrastructure. Organizations should review open grant opportunities on Simpler Grants Gov and assess eligibility ahead of application deadlines.

Revenue cycle teams at rural facilities should also note that expanded telehealth funding will bring increased volume through virtual care channels, requiring updated billing workflows and payer coordination for telehealth-delivered services.
Sources: HRSA Press Release, HRSA Funding Opportunities