House Budget Chairman Jodey Arrington announced that Texas will receive the largest allocation of funds in the country under the new Rural Health Transformation Program. This program, created by legislation authored and passed by Arrington earlier this year, will provide Texas with $1.4 billion to strengthen rural hospitals and expand healthcare access across West Texas and other rural areas.
Arrington stated, “You won’t have the next generation of ag and energy producers providing America with food security and energy independence without access to basic health care in rural communities. Yet for years, Rural America has faced a growing health care crisis marked by fewer providers, reduced services, and declining access to quality care.
“To combat this crisis, the One Big Beautiful Bill established the ‘Rural Health Transformation Program,’ the largest and most comprehensive investment in rural health care in modern history – delivering a historic $50 billion commitment to strengthen rural hospitals and expand access to care.
“Today, I am proud to announce the Centers for Medicare & Medicaid Services (CMS) awarded Texas the highest allocation of any state under this program, directing landmark investments to strengthen rural hospitals, expand access to care for our cowboys and plowboys, and secure a healthier future for the next generation of Texans. This is a major win for our region, our great state, and the heartland of America – ensuring our rural communities remain healthy, strong, and thriving for years to come.”
According to information from CMS’s Office of the Actuary, Medicaid spent $19 billion on rural hospitals nationwide in 2024. The new Rural Health Transformation Program will add another $10 billion each year from 2026 through 2030. For Texas specifically, this means an annual allocation of $281 million over five years.
The Texas Health and Human Services Commission (HHSC) will manage distribution through a competitive process open to qualified applicants such as rural hospitals, federally qualified health centers in rural areas, behavioral health providers serving rural communities, and local governments. Funding priorities include attracting healthcare professionals to underserved towns, investing in telehealth services for better access, addressing chronic diseases proactively with wellness programs focused on nutrition, improving cybersecurity measures at medical facilities, and upgrading equipment at clinics and hospitals.
Jodey Arrington has maintained strong electoral support throughout his tenure. In 2024 he won re-election against Nathan Lewis with more than 80% of the vote; similar margins were seen in previous elections dating back to 2016.
