Rural NY health care providers to get $76 million in federal funds

Health care networks serving rural New Yorkers will receive $76 million in federal funds to improve the quality of care they provide, the Trump administration announced Friday.

Delivered through the Rural Health Transformation Program, the funds will support coordinated care and technology modernization, enabling hospitals and other providers to build and grow integrated care networks, officials say.

“Across Upstate New York, rural families too often face provider shortages, long travel times, and barriers to receiving timely medical care,” says Rep. Claudia Tenney. “This $76 million investment will strengthen the safety net hospitals, health centers, and community providers on the front lines, improve care coordination, and expand access to critical health and social services where they are needed most.”

The funds are also expected to be used toward workforce needs. Some examples include enhanced clinical rotations, employer-based training programs and remote-supported training technologies.

RHT program funds—totaling $50 billion—are to be allocated to approved states over five fiscal years, with $10 billion each year, starting in fiscal 2026 and ending in fiscal 2030. Half of the funds will be equally distributed across the country and the other half will be allocated by the Centers for Medicare & Medicaid Services based on a mix of factors including the population and proportion of rural facilities in a state.

According to CMS, projects supported by this funding include: 

■ improving coordination among rural hospitals, primary care providers, federally qualified health centers, behavioral health providers, and other community-based organizations;

■ enabling rural New Yorkers to receive more of the care and support they need closer to home to help address gaps in local services and connect patients with appropriate health and community resources;

■ creating more integrated regional networks and improving coordination between organizations to make it easier for patients to access services and move among providers and care settings;

■ bringing rural health care and community partners together to better address patients’ health needs and improve health outcomes; and

■ increasing the long-term sustainability of rural health care providers and the communities they serve by investing in stronger regional partnerships and integrated health networks.

The Trump administration has faced criticism from New York hospitals and health networks, in particular for funding cuts included in last year’s One Big Beautiful Bill Act. They said the billions of dollars in cuts would cost thousands of jobs and force hospitals to curtail services, especially among those that are already financially distressed.

“Most (New York) hospitals are operating in the red or barely breaking even—with patient access to care increasingly at risk” the Healthcare Association of New York’s 2025 fiscal survey report stated.

Smriti Jacob is the Beacon’s managing editor.

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