Louisville, Kentucky, December 31, 2025
Kentucky and Indiana have each received over $200 million in federal funding to enhance rural health care services through the Rural Health Transformation Program, aimed at addressing disparities in access to quality care. Kentucky’s allocation of $212.9 million will support five integrated care models, while Indiana’s $206.9 million will fund the GROW initiative to improve health services in rural areas, focusing on sustainability and workforce development.
Federal Funding Boosts Rural Health Care in Kentucky and Indiana
Louisville, Kentucky – Kentucky and Indiana have each been awarded over $200 million in federal funding to enhance rural health care services. This initiative is part of the Rural Health Transformation Program, a nationwide effort to improve health care access and quality in rural communities.
Kentucky’s $212.9 Million Allocation
Kentucky has secured $212.9 million to implement its Rural Health Transformation Plan over the next five years. The plan focuses on five integrated care innovation models:
- Rural Community Hubs for Chronic Care Innovation: Addressing obesity and diabetes prevention and management through integrated nutrition, physical activity, and digital self-management tools.
- PoWERing Maternal and Infant Health: Expanding telehealth-enabled, community-based maternal care teams to provide prenatal and postpartum services in underserved areas.
- Rapid Response to Recovery (EmPATH Model): Offering mobile crisis response, telepsychiatry, and stabilization services to connect individuals with community-based behavioral health and recovery supports.
- Rooted in Health — Rural Dental Access: Enhancing dental hygiene training, externships, and portable or tele-dental clinics to improve preventive oral health services.
- Crisis to Care — Integrated EMS Response: Improving pre-hospital care and trauma coordination through treat-in-place protocols, workforce training, and better data connectivity.
These initiatives aim to address significant health disparities in Kentucky, such as higher rates of chronic conditions and limited access to maternity and mental health services.
Indiana’s $206.9 Million Allocation
Indiana has been awarded nearly $207 million to support its five-year Growing Rural Opportunities for Well-being (GROW) initiative. The GROW program focuses on:
- Making Rural Indiana Healthy Again: Promoting preventive care and chronic disease management through evidence-based interventions.
- Providing Sustainable Access: Strengthening the long-term sustainability of rural clinicians and facilities by improving efficiency and collaboration.
- Improving the Rural Health Workforce: Attracting and retaining skilled health care professionals by enhancing recruitment and retention strategies.
- Implementing New Ways to Provide Care: Encouraging innovative service models and payment mechanisms to improve outcomes and reduce costs.
- Leveraging Technology: Expanding the use of digital health tools and technologies to improve care delivery and data sharing.
The GROW initiative aims to enhance health care access and quality in rural Indiana through system innovation and collaboration.
Nationwide Rural Health Transformation Program
The Rural Health Transformation Program is a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation. It aims to strengthen and modernize health care in rural communities across the United States. Beginning in 2026, states will receive first-year awards from the Centers for Medicare & Medicaid Services (CMS) averaging $200 million, with funds allocated over the next five years.
Addressing Rural Health Challenges
The funding addresses critical health care challenges in rural areas, including:
- Chronic Diseases: Higher prevalence rates compared to national averages.
- Maternity Care Shortages: Significant gaps in access to prenatal and postpartum services.
- Mental Health Professional Shortages: Limited availability of mental health services, leading to increased strain on emergency departments and first responders.
- Oral Health Care Access: Low dental visit rates and high rates of complete tooth loss among seniors in certain regions.
These initiatives aim to improve health outcomes and reduce disparities in rural communities across Kentucky, Indiana, and the nation.
Frequently Asked Questions (FAQ)
What is the Rural Health Transformation Program?
The Rural Health Transformation Program is a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation. It aims to strengthen and modernize health care in rural communities across the United States. Beginning in 2026, states will receive first-year awards from the Centers for Medicare & Medicaid Services (CMS) averaging $200 million, with funds allocated over the next five years.
How much funding did Kentucky and Indiana receive?
Kentucky has secured $212.9 million, and Indiana has been awarded nearly $207 million to enhance rural health care services.
What are the key focus areas of Kentucky’s Rural Health Transformation Plan?
Kentucky’s plan focuses on five integrated care innovation models: Rural Community Hubs for Chronic Care Innovation, PoWERing Maternal and Infant Health, Rapid Response to Recovery (EmPATH Model), Rooted in Health — Rural Dental Access, and Crisis to Care — Integrated EMS Response.
What is the GROW initiative in Indiana?
The GROW initiative, or Growing Rural Opportunities for Well-being, is a five-year program in Indiana focusing on making rural Indiana healthy again, providing sustainable access, improving the rural health workforce, implementing new ways to provide care, and leveraging technology to enhance health care access and quality in rural communities.
What challenges are being addressed by this funding?
The funding addresses critical health care challenges in rural areas, including higher prevalence rates of chronic diseases, significant gaps in maternity care, limited availability of mental health services, and low oral health care access.
Key Features of the Rural Health Transformation Program
| Feature | Description |
|---|---|
| Program Name | Rural Health Transformation Program |
| Initiative Amount | $50 billion |
| Funding Period | 2026–2030 |
| First-Year State Awards | Averaging $200 million per state |
| Kentucky’s Allocation | $212.9 million |
| Indiana’s Allocation | Nearly $207 million |
| Key Focus Areas | Chronic care innovation, maternal and infant health, behavioral health, dental access, EMS response |
| Program Goals | Expand access to care, strengthen rural workforce, modernize facilities and technology, support innovative care models |
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