Oregon Organizations Awarded Federal Funding To Improve Rural Healthcare - 04/10/26
April 10, 2026
Contact: Franny White, Franny.l.white@oha.oregon.gov, 971-349-3539
Oregon organizations awarded federal funding to improve rural healthcare
Future Rural Health Transformation Program opportunities include May 26 proposal deadline
SALEM, Ore. – A dozen projects – offering training for healthcare professionals, mental health and substance use prevention at schools, support for people managing chronic diseases like diabetes and heart disease, and much more – are the first in Oregon that are expected to receive federal Rural Health Transformation Program funding.
Oregon Health Authority (OHA) is also preparing to release additional funding in the coming months. Details on future funding opportunities – including one that has a May 26 proposal deadline – are provided below.
“Where you live shouldn't determine whether you get quality health services," said OHA Director Dr. Sejal Hathi. “These projects show what's possible when rural communities lead, and OHA is committed to helping them turn homegrown solutions into lasting impact."
The 12 projects are expected to collectively receive up to $6.5 million this year. To quickly bring much-needed support to promising, ready-to-go projects, OHA is directly providing this specific pool of rural health funding, which OHA has named Immediate Impact Awards. The organizations that are expected to receive this direct funding are listed below. OHA expects to determine the exact funding for individual projects by May, after budget negotiations are completed.
“These early projects will help Oregon's Rural Health Transformation Program succeed in its first year, building a solid foundation upon which we can meaningfully improve rural healthcare access for years to come," said OHA Health Policy & Analytics Director Clare Pierce-Wrobel.
The Nine Federally Recognized Tribes of Oregon are also expected to receive a total of $21.7 million this year through the program's Tribal Initiative, which aims to improve Tribal healthcare access and health outcomes in rural and remote Tribal communities based on each individual Tribe's identified needs. OHA partnered with Tribal representatives to create this initiative while honoring Oregon's government-to-government relationship with the Tribes.
Project proposals accepted through May 26
Through May 26, eligible organizations can also propose their innovative projects for a competitive Oregon Rural Health Transformation Program funding pool known as the Catalyst Awards. OHA expects to grant a total of about $80 million per year for up to two years, pending federal approval, toward Catalyst Award-supported projects. Up to 80 proposals will be funded by early July through this opportunity.
Catalyst Awards will be given to projects that are ready to launch within two months of receiving funding and address at least one of the following areas: maternal and child health; co-occurring behavioral health conditions; aging in place; and chronic disease. More information about the application process is on the OHA Rural Health Transformation Program webpage
In addition to the Catalyst Awards, OHA plans to further award federal funding to hospitals, health clinics and local public health authorities to help rural Oregon improve access to critical services during a time of tremendous change and challenge in healthcare. To further support the Rural Health Transformation Program's goals, OHA expects to direct a total of $50.4 million this year by late summer.
- Each of the state's 35 rural hospitals can receive direct grants, with a total of $35 million expected to be provided this year.
- Each rural health clinic can receive direct grants, with a total of $10 million expected to be provided this year. Oregon currently has 100 certified rural health clinics.
- Each of the state's 33 local public health authorities – most of which are county health departments – can receive funding, with a total of $5 million expected to be provided this year.
OHA also plans to partner with the Oregon Office of Rural Health to support this statewide effort by facilitating regional collaboration and providing technical assistance to organizations that are planning or implementing rural health projects.
Community-driven improvement
The Rural Health Transformation Program was created by U.S. House Resolution 1, a federal tax and spending bill that became law in July 2025. While the law will cut an estimated $15 billion in federal funding for Oregon programs that provide health insurance, food benefits and more, it also created this federal program. The Rural Health Transformation Program will distribute a total of $50 billion nationwide between 2026 and 2031. The U.S. Centers for Medicare & Medicaid Services oversees the program.
Oregon is receiving a total of $197.3 million in 2026 and could receive more in the following four years. If the federal government approves Oregon for similar amounts in future years, the state could receive an estimated total of $1 billion through the program. While each state's 2026 funding was announced in late 2025, much of Oregon's funding was restricted and could not be spent until the federal government gave approval on March 19, 2026.
OHA is investing this federal funding in community-driven projects that improve healthcare access, boost chronic disease management and prevention, grow and sustain the healthcare workforce, and expand the use of health technology and data in Oregon's rural and frontier communities.
Oregon's Rural Health Transformation Program efforts are divided into two phases. In 2026 and 2027, OHA will swiftly support ready-to-go projects while also helping rural-serving organizations strengthen partnerships for the next phase. Between 2028 and 2030, OHA plans to award larger, competitive grants for longer-term regional projects that transform the healthcare system.
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Oregon's first Immediate Impact Awards are expected to support the following rural-focused projects.
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The Oregon Rural Health Transformation Program is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $197,271,577.67, with 100 percent funded by CMS/HHS. The contents of this release are those of OHA and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government.