WASHINGTON, D.C. — Congressman Jake Ellzey (TX-06) announced that Congress has approved the creation of the Rural Health Transformation Fund, a first-of-its-kind initiative delivering $50 billion to strengthen health care access and innovation across rural America. The fund was established as part of the President’s Working Families Tax Cuts package.

“Too often, rural families are left with fewer options, longer drives, and worse outcomes,” said Ellzey. “This investment gives our communities the tools to build a stronger system that lasts, one focused on prevention, innovation, and dignity.”

Rural hospitals have faced mounting challenges: higher rates of chronic illness, declining patient volumes, and closures that leave residents without care close to home. Currently, only 7% of Medicaid hospital spending reaches rural facilities. Ellzey noted that past bailouts “have been a Band-Aid on a severed artery,” and emphasized that the new fund is designed to deliver long-term solutions instead of short-term fixes.

The Rural Health Transformation Fund will:

• Provide $10 billion annually starting in 2026, targeting systemic reform.
• Allow Governors to apply with state-specific plans that reflect the unique needs of their rural communities.
• Support new models of care, recruitment of medical professionals, and technology upgrades to expand access and improve outcomes.
• Ensure funding is distributed fairly among states, with additional support directed to areas of greatest rural need.

States must apply by early November, and awards will be announced before the end of the year.

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