Minnesota To Receive $193 Million for Rural Healthcare

January 8, 2026

On December 30, the Minnesota Department of Health (MDH) announced that it will be awarded more than $193 million from the federal government for rural healthcare across the state.  

This first year of Rural Health Transformation Program (RHTP) investments from the Centers for Medicare & Medicaid Services (CMS) includes base funding distributed to approved states, as well as significant additional funds recognizing Minnesota's innovative plan to stabilize and strengthen healthcare delivery in rural communities.  

The funding will support strategic investments in new technology tools to bring care closer to home for rural residents; improve health outcomes for Minnesotans with or at risk of developing cardiovascular disease, diabetes, and chronic kidney disease; and expand the rural health care workforce through education and training pathways. Funding will also be used to enhance technology-enabled care delivery, including mobile and community-based services, strengthen provider partnerships, and bolster the financial stability of rural providers through targeted investments in technology and data infrastructure. 

“With rural Minnesota facing unprecedented access and funding challenges, this award comes at a crucial time,” said Health Commissioner Brooke Cunningham, MD, PhD. “It is an important investment in our rural communities, and we are excited to begin working with our partners to advance access to high-quality care, improve outcomes, and ensure sustainable services in Greater Minnesota for years to come.”   

Minnesota’s approved plan was built on extensive collaboration with rural community stakeholders, hospitals and health systems, safety net clinics, Tribes, and local public health agencies. 

MDH's application was submitted in November, and asked for $1 billion over five years for an average of $200 million per year. The application reflected input from more than 40 stakeholder meetings and nearly 350 public responses; state officials will continue engaging stakeholders when the implementation process begins in early 2026.   

The Rural Health Transformation Program provides up to $50 billion nationwide over five years to support innovative rural health initiatives. In 2026, all 50 states will receive first-year awards from CMS. Click here to see what other states will receive. 

Additional details and insights about Minnesota’s specific strategic RHTP initiatives is available on MDH’s Rural Health Transformation Program website.