April 29, 2026 – Governor Greg Abbott today announced the Texas Health and Human Services Commission (HHSC) is making $99 million in federal funding available to rural hospitals. As part of the Rural Texas Strong plan, the grant opportunity will help health care providers recruit and retain workers.
"Accessible care for all Texans is vital for the sustained success of our state," said Governor Abbott. "This grant will provide rural hospitals with the tools they need to retain and recruit the next generation of health care workers. I thank HHSC for helping to provide every Texan the care they need to live healthy lives."
The “Next Generation of the Small Town Doctor and Team” initiative includes $99 million to provide programs and incentives for current and future clinicians to practice in rural communities. The funds may be used to:
- Develop scholarships and programs for local high school students to pursue health care careers.
- Offer relocation or signing bonuses for providers.
- Create new residency training programs, including partnering with academic institutions.
“Strong rural health care systems are essential to the well-being of families and communities across Texas,” HHS Executive Commissioner Stephanie Muth said. “This investment supports the doctors, nurses and care teams who serve rural Texans every day.”
Licensed rural health providers will be eligible to apply for funding through a competitive process. Applications must be submitted by May 27.
The $99 million announced today represents a portion of the $281,319,360.67 first‑year award HHSC received from the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program. Rural Texas Strong, the CMS-approved state plan, is 100% federally funded and features six initiatives that deliver funding to rural communities.
Texas estimates receiving approximately $1.4 billion in federal funding over five years through the program to support rural health care.
Federal funding is contingent upon meeting all applicable program requirements. For more information, visit the HHS Rural Health Transformation webpage.
Public notices and procurement opportunities for Rural Texas Strong will be announced through GovDelivery email notifications and posted on the Electronic State Business Daily website.
