December 29, 2025
New York State has been awarded $212M
For months I have checked the DoH Website daily to determine whether NYS made its application for funds through the Rural Health Transformation Fund, available for public viewing. To date, NYS is one of only a handful of states that did NOT make this information available publicly, and I see nothing online that changes this situation, nor do I see the approval notice that (I presume) would make it clear as to how NY proposes to spend the funds.
As you will recall, decisions re: RHTP funding were expected by 12/31. States have no ability to appeal if their applications are rejected or they receive less money than they requested. Oz also said the federal government can “claw back” funding from states that “don’t perform” and redistribute it, saying: “This is not punitive. This is a very clever decision by the crafters of the law.”
As background, the link below includes a brief summary of NY’s application. Also, attached please find the NYS Council’s recommendations to DoH for centering at least some of the funds on the needs of New Yorkers living in rural areas of the state, with behavioral health conditions. We sent extensive recommendations to DoH on September 19, after we pushed our way into a meeting hosted by DoH right after Labor Day when a handful of association reps were educated and asked to submit their recommendations to DoH quickly.
The state received the 12th-largest allocation in the country.
By Katelyn Cordero | 12/29/2025 12:11 PM EST
ALBANY, New York — New York is set to receive $212 million from the federal Rural Health Transformation Program, the Centers for Medicare and Medicaid Services announced Monday. New York’s award was the 12th highest among all 50 states. New Jersey received the lowest award — roughly $147 million. The largest allocation, $281 million, was given to Texas, followed by Alaska at $272 million.
New York requested $200 million for 2026 from the $50 billion program that was included in President Donald Trump’s One Big Beautiful Bill Act, enacted in July. Half of the fund was divided equally among all states that applied. The other half was distributed at the discretion of CMS officials.“Thanks to Congress establishing this investment and President Trump for his leadership, states are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running,” CMS Administrator Mehmet Oz said in a statement. “CMS is proud to partner with every state to turn their ideas into lasting improvements for rural families.”
Context: New York submitted its application before the early November deadline, requesting $200 million for each of the next five years. The state highlighted four key priorities in its application: strengthening technology infrastructure, creating a sustainable health care workforce, improving access to primary care services and establishing collaborative models for improving community health. Details of the application were shared with POLITICO by the state Health Department; however, requests for a copy of the submission were denied by the health agency and CMS. The state did not immediately respond to a request for comment on the award.
Background: In drafting the state’s application, New York Health Department officials gathered input from health care industry stakeholders in September. Many who submitted ideas to the state told POLITICO they would like to see it focus on workforce shortages, transportation deficiencies, and bolstering technology infrastructure.The $50 billion will be stretched out over five years from 2026 through 2030. That means the amount New York ultimately receives will likely depend in part on whether the state implements policies pushed by the Trump administration, such as barring low-income people from using food aid to purchase “non-nutritious foods,” mandates for schools to reestablish the Presidential Fitness Test and requiring doctors to take continuing education classes on nutrition.
What’s next: The use of the funds will be closely monitored by CMS officials dedicated to each state, the federal agency said. States will be required to submit regular updates and can lean on CMS officials for guidance and technical assistance.States can’t appeal their award if they received less money than expected. Oz said in September that the government reserves the right to claw back the funding if states don’t use it as the administration deems appropriate.CMS also announced that it plans to use the program to promote collaboration between states. Health officials will take part in an annual CMS Rural Health Summit, where they will be able to share lessons learned and effective models they’ve used.