News

Rural Health Transformation Program Won’t Make Up for Federal Budget Cuts, Experts Agree

October 6, 2025/

Because of the cuts from the Trump tax-cut plan, federal Medicaid spending in rural areas is expected to drop by $155 billion over 10 years, according to the Kaiser Family Foundation, or about $15.5 billion per year. The Rural Health Transformation Program will provide $50 billion over five years to help offset those losses, or about $10 billion per year. Many industry experts say that’s not enough.

Healthcare experts and practitioners alike worry that explicit language preventing the use of the program funds to prevent rural hospitals from closing is a death sentence to many of the facilities already struggling to stay open.
by Liz Carey


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