Goodsurance

Policy & oversight

Texas Receives 281.3 Million Dollars, the Program's Largest State Award, to Expand Rural AI Telehealth

Texas's first-year Rural Health Transformation grant leads all states and centers on artificial intelligence, telehealth infrastructure, and growing the rural provider workforce.

By the Goodsurance editorial teamSeptember 7, 2026

Texas will receive 281.3 million dollars in the first year of the federal Rural Health Transformation Program, the largest first-year award of any state, according to the Texas Health and Human Services Commission. The funds are administered by the Centers for Medicare and Medicaid Services as part of a 50-billion-dollar, five-year effort to modernize rural health care across the country.

Texas's plan, called Rural Texas Strong, addresses several priorities. One focuses on deploying artificial intelligence and telehealth technology to connect patients in communities with few in-person providers, under the initiative named Lone Star Advanced AI and Telehealth. A second covers capital improvements at rural hospitals and clinics. A third targets wellness and nutrition programs for rural residents. The plan also includes components for rural workforce development.

Texas has a large rural population spread across a geographic area that makes access to specialty care difficult for residents in many counties. Rural hospitals in the state have faced financial pressure in recent years, and the federal funds are intended to help build more durable local health systems over the five-year program period.

Texas received the largest rural health grant of any state: 281.3 million dollars for AI telehealth, rural hospital upgrades, and new wellness programs.

In plain words

Texas is getting more than 281 million dollars, the largest amount of any state, from a federal program to improve rural health. The money will pay for new telehealth tools, artificial intelligence to help connect patients with care, improvements at rural hospitals and clinics, and wellness programs. Texas has many small towns far from hospitals, and the goal is to make it easier for people there to get care closer to home. The program runs for five years.

Source: Texas HHS
Read at the source →

More news

Other stories on what is moving in Medicare.

Policy & oversight

MedPAC Flags Outdated Cost Data Behind Medicare Physician and Lab Payment Rates

Congressional advisers reviewed evidence at their October meeting that the formulas setting Medicare payments for doctor visits and lab tests still rely on practice cost data that is roughly two decades old.

October 10, 2026

Policy & oversight

Iowa Receives 209 Million Dollars in Federal Rural Health Grants for Robotic Surgery, Maternal Telehealth, and Cancer Screening

CMS announced 209 million dollars for Iowa through the Rural Health Transformation Program, targeting robotic-assisted surgical equipment, a statewide maternal-fetal telehealth network, cancer screening, and a health information exchange linking more than 100 rural facilities.

October 9, 2026

Policy & oversight

32 House Members Ask CMS to Drop Proposal That Would Bar Outside Vendors From Medicare Remote Monitoring

A bipartisan letter to CMS Administrator Mehmet Oz warns the proposed ban would cut off rural Medicare patients from home monitoring programs they depend on today.

October 7, 2026

Policy & oversight

Federal Grants Bring Mental Health Clinics, Mobile Crisis Teams, and Addiction Treatment to Rural North Carolina

More than 17 million dollars from CMS will build three behavioral health clinics, expand opioid treatment, and deploy mobile crisis response teams across rural counties, the agency announced October 7.

October 7, 2026

Policy & oversight

Medicare Will Require Most Hospitals to Join a Mandatory Joint Replacement Care Model Starting in 2028

CMS announced the nationwide expansion of its hip, knee, and ankle replacement payment program, citing 180 million dollars in net Medicare savings from the model's final years of testing.

October 6, 2026

Policy & oversight

Alabama Receives a Second Round of Federal Rural Health Grants Totaling Nearly 55 Million Dollars for Maternal Care and Cancer Screening

Thirty-four rural healthcare organizations across the state will expand emergency obstetric services, telehealth, cancer screening, and workforce training under a second tranche of Rural Health Transformation funds.

October 4, 2026