Texas – Texas Gov. Greg Abbott announced that the Texas Health and Human Services Commission is making $56 million in federal funding available to rural health care providers across the state, as part of a broader initiative aimed at strengthening medical services outside major urban areas.
The funding is being distributed through the “Infrastructure and Capital Investments for Rural Texas” initiative, which falls under the Rural Texas Strong plan. State officials said the program is designed to modernize rural health care delivery by helping providers upgrade equipment and make targeted facility improvements.
Abbott said the investment is intended to improve access to quality medical care in communities that often face limited resources and long travel distances for treatment.
“Texas must meet the demand for high-quality and accessible health care throughout our state,” Abbott said. “This grant will give health care providers the opportunity to update facilities and equipment for the betterment of their community.”
According to the Texas Health and Human Services Commission, the $56 million in funding can be used for a wide range of medical equipment upgrades. Eligible items include diagnostic and imaging equipment such as CT scanners, ultrasound machines, mammography systems, and laboratory tools.
The program also allows funding for essential hospital infrastructure and patient care equipment, including stretchers, wheelchairs, hospital beds, telemetry systems, nurse call systems, generators, defibrillators, crash carts, medication dispensing units, sleep study equipment, vital sign monitors, and oxygen systems.
Officials said the goal is to ensure rural providers can maintain modern standards of care and respond effectively to patient needs without requiring residents to travel long distances for treatment.
HHSC Executive Commissioner Stephanie Muth said the initiative is intended to strengthen health care delivery at the local level and improve long-term planning for rural providers.
“Access to modern equipment makes a real difference in how quickly and effectively patients can receive care close to home,” Muth said. “This initiative equips rural providers to keep services local, respond to community needs, and plan confidently for the future.”
Licensed rural health care providers will be able to apply for funding through a competitive application process. The deadline to submit applications is June 1, according to state officials.
The $56 million announcement represents part of a larger federal funding package awarded through the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program. State officials said Texas received more than $281 million in the first year of the program.
Under the Rural Texas Strong plan, which was approved by CMS, the program is fully federally funded and includes six separate initiatives aimed at improving rural health care systems across Texas.
State estimates suggest Texas could receive approximately $1.4 billion in total federal funding over five years through the program, depending on continued compliance with federal requirements.
Officials said the funding will play a key role in helping rural hospitals and clinics remain operational, modernize services, and expand access to care for communities across Texas.
