Iowa to Receive $209 Million From CMS to Strengthen Rural Health Care

The Centers for Medicare & Medicaid Services (CMS) has announced a historic $50 billion investment through the Rural Health Transformation Program, aimed at strengthening health care delivery in rural communities across all 50 states. As part of this initiative, Iowa will receive $209,040,064 in fiscal year 2026, ranking 18th in the total funding amount compared to other states for this year.

Last month, the Iowa Department of Health and Human Services (Iowa HHS) submitted its application for these funds under the plan titled Healthy Hometowns – Iowa’s Rural Health Transformation Plan. This comprehensive strategy focuses on five key areas:

• Hometown Connections
  Building formal partnerships to restructure rural health care delivery and implementing sub-initiatives to recruit and retain a strong rural health workforce

• Combat Cancer: Prevent & Treat
  Comprehensive initiatives to prevent, detect, and treat cancer across Iowa

• Communities of Care
  Supporting co-location of diverse rural provider types to improve access and coordination

• Health Information Exchange
  Expanding statewide access to health records for seamless care coordination

• EMS Community Care Mobile
  Investing in telehealth technologies for high-risk maternal and neonatal transport and launching mobile integrated health programs to bring care directly to rural residents

The Request for Proposal (RFP) for these focus areas have been posted on IowaGrants with final applications due by 4:00 p.m. on Monday, January 5, 2026. Award announcements are expected in mid-January with contracts starting mid-February.  

Hospitals and health systems are encouraged to prepare now to participate in these initiatives, collaborate with Iowa HHS, and leverage this funding to enhance rural health care delivery.

Click here to view the press release from Gov. Reynolds.