States will receive $10 billion next year through the Rural Health Transformation Program to support rural hospitals and offset Trump-era budget cuts.
Half of the funds will be distributed equally, while the other half is based on a CMS formula considering rural population, hospital finances, and health outcomes.
$12 billion of the five-year funding is tied to states adopting policies aligned with the Trump administration’s “Make America Healthy Again” initiative, such as SNAP restrictions and nutrition education.
Officials said funding will be recalculated annually, allowing the federal government to reduce awards if states fail to implement targeted policies, PBS has reported.
Critics worry the policy conditions could disadvantage Democratic-led states that reject such restrictions, even if they qualify for more funding otherwise.
