Rural Health Transformation Program

Rural Health Transformation Logo

Surveys

We are seeking input from health care CEOs, COOs, CTOs, physicians or clinic owners, and organizational decision makers to help shape the future of rural health technology in our state.

We are conducting two brief surveys to better understand current Electronic Health Record (EHR) and Health Information Exchange (HIE) capabilities, needs, and funding priorities under the Rural Health Transformation Program. 

Survey results will directly inform:

  • EHR modernization for rural providers
  • Improved use and exchange of health information
  • Future rural health technology investments

The surveys will be live until June 19, 2026 at the links below:

  1. HIE Service Status and Usability
  2. EHR Readiness Assessment

The surveys take approximately 2-3 minutes to complete. 

Next Steps

DPHHS will collaborate with rural providers, hospitals, community organizations, and other health care stakeholders to deliver five core initiatives tailored to Montana's rural health care challenges.

The five core initiatives are:

  1. Workforce Development
  2. Sustainable Access
  3. Innovative Care Models
  4. Community Health and Prevention
  5. Technology Innovation

For questions about this project, please email HHSRuralHealthTransformation@mt.gov.

Program Background

Established by President Trump’s Working Families Tax Cuts legislation, the RHTP provides up to $50 billion nationally through 2030 to help states stabilize, transform, and restructure rural health systems and support essential health care providers with sustainability.

H.R. 1, enacted on July 4, 2025, established a federal $50 billion Rural Health Transformation Program (RHTP) to stabilize and strengthen rural health care delivery systems, including hospitals and other providers.

To receive funding from the RHTP, states had to submit a rural health transformation plan to CMS. In November 2025, Montana applied for funding from the Centers for Medicare and Medicaid Services (CMS), and on Dec. 29, 2025, DPHHS was awarded a historic $233 million in funds to stabilize and modernize rural health care delivery throughout Montana. DPHHS will now allocate funds to eligible entities in accordance with Montana’s approved rural health transformation plan.

Prior to submitting the plan, DPHHS conducted several weeks of public outreach to Montana’s hospitals, over 20 rural health stakeholders, all eight tribal nations and Urban Indian Organizations, and other state agencies. DPHHS also integrated feedback from a 900-registrant webinar and over 300 formal responses to an agency-led Request for Information. The plan reflects this input.

H.R. 1 created a $50 billion fund for states with an approved rural health transformation plan, with $10 billion available per year from FFY 2026 through FFY 2030. Half of the funding will be split evenly between states with an approved transformation plan, and the other half will be distributed to states at CMS’ discretion based on each state’s rural population, rural health facilities, and other CMS-defined characteristics.

This documentation contains information on the Rural Health Transformation program application and project narrative which was submitted by the State of Montana. There is a summary document included as well as the budget overview to reflect the guidance from Centers for Medicare & Medicaid Services (CMS) received between January 26 and February 6, 2026.

Governor Greg Gianforte and Department of Public Health and Human Services (DPHHS) Director Charlie Brereton announced in December 2025 a historic $233 million investment from the Trump administration to stabilize and modernize rural health care delivery throughout Montana. Awarded by the CMS's RHTP, these funds will support Montana’s rural health care providers in delivering sustainable, high-quality care and ensuring appropriate access for those in need of services.

This investment reflects the first-year award of a five-year federal grant program, with Montana currently set to receive up to $1.2 billion over the life of the program.

DPHHS submitted its RHTP application to CMS in November 2025. The state received the fourth-highest funding award among all 50 states, signaling the quality and strength of Montana’s application. 

Frequently Asked Questions

  • CoE - Rural Health Center of Excellence
  • CMS - Centers for Medicare & Medicaid Services
  • DPHHS - Department of Public Health and Human Services
  • HRSA - Health Resources and Services Administration
  • NOFO - Notice of Funding Opportunity
  • RHTP - Rural Health Transformation Program
  • SAC - Stakeholder Advisory Committee

Montana aims to provide all residents with affordable, high-quality care regardless of geography. The State’s RHTP plan tackles rural health disparities through five core initiatives: workforce development, sustainable access, innovative care models, community health and prevention, and technology innovation.

Eligibility varies by initiative, but typical applicants include tribal nations, government agencies, health care providers, educational institutions, nonprofits, and other partners capable of implementing rural health projects.

The State is currently designing its RHTP fund distribution plans, which must comply with state procurement rules. Most initiatives will involve competitive bidding via bids.mt.gov, while others may use government-to-government contracts with another state agency (for example, the Department of Labor and Industry) or grant applications. If direct funding opportunities for communities and providers become available, they will be announced at ruralhealth.mt.gov.

Each funding opportunity will specify review criteria and selection processes aligned with Centers for Medicare & Medicaid Services (CMS) requirements, such as rural impact, feasibility, sustainability, and budget effectiveness.

CMS uses Health Resources and Services Administration (HRSA) standards, classifying 51 of Montana’s 56 counties as non-metropolitan. Specific census tracts within the five metropolitan counties (Cascade, Gallatin, Lewis and Clark, Missoula, and Yellowstone) may also qualify. While initiatives must focus on rural health, they can include non-rural areas if they significantly benefit rural populations.

Yes, provided the work demonstrably benefits rural communities. Initiatives must focus on rural health but can include non-rural regions if the rural impact is clear.

Yes. The Department of Public Health and Human Services (DPHHS) initiatives submitted on Nov. 5, 2025 are final and funded as awarded. Per CMS rules, initiatives cannot be added or removed, though the state may adjust funding, goals, and timelines within them.

Part of the second initiative, the CoE is a time-bound program providing data-backed, tailored recommendations to improve rural health facility sustainability and care delivery. Facilities can opt in to receive financial incentives for implementing these transformation plans. For details, see Montana’s RHTP Project Narrative.

The RHTP receives annual funding over five budget periods. Funds must be used by the end of the following period or they will be redistributed to other states. While Montana may distribute funds via subawards or subcontracts to execute initiatives, specific decisions have not yet been made. All efforts prioritize sustainability and impact beyond the five-year grant term.

CMS prohibits using RHTP funds for construction, major building projects, cosmetic upgrades, independent research, or restricted telecommunications equipment. Additionally, funds cannot supplant existing funding streams. For a complete list of restrictions, see pages 18-22 of the NOFO and the CMS FAQ (PDF).

Meetings and Presentations

Aug. 6, 2026
Montana State University, Bozeman

  • Agenda will be posted closer to meeting

January 13, 2026
Department Updates: Children, Families, Health, and Human Services Interim Committee

October 2, 2025

Email Updates

To sign up for Rural Health Transformation Program updates, please enter your email address below.

Stevens Amendment

The Rural Health Transformation Program is supported by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $233,509,358.76 with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS/HHS, or the U.S. Government.