Governor Abbott, HHSC Announce $56 Million In Federal Funding For Rural Health Care Providers To Modernize Equipment, Infrastructure

TEXAS, May 1 - May 1, 2026 | Austin, Texas

Governor Greg Abbott today announced the Texas Health and Human Services Commission (HHSC) is making $56 million in federal funding available to rural health care providers. As part of the Rural Texas Strong plan, the grant opportunity will help health care providers update critical equipment and infrastructure.

"Texas must meet the demand for high-quality and accessible health care throughout our state," said Governor Abbott. "This grant will give health care providers the opportunity to update facilities and equipment for the betterment of their community. We will deliver state-of-the-art treatment for everyone who calls Texas home."

The “Infrastructure and Capital Investments for Rural Texas” initiative will provide $56 million to modernize rural health care delivery by funding new equipment and minor renovations to facilities.

Health care providers can use the funds to update lab, CT scan, ultrasound or mammography equipment; stretchers, wheelchairs, patient beds, telemetry units, nurse call systems, generators, defibrillators, crash carts, medication dispensing units, sleep labs, vital sign monitors, oxygen tanks and other allowable equipment.

“Access to modern equipment makes a real difference in how quickly and effectively patients can receive care close to home,” HHS Executive Commissioner Stephanie Muth said. “This initiative equips rural providers to keep services local, respond to community needs, and plan confidently for the future.”

Licensed rural health providers will be eligible to apply for funding through a competitive process. Applications must be submitted by June 1.

The $56 million announced today represents a portion of the $281,319,360.67 first‑year award HHSC received from the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation Program. Rural Texas Strong, the CMS-approved state plan, is 100% federally funded and features six initiatives that deliver funding to rural communities.

Texas estimates receiving approximately $1.4 billion in federal funding over five years through the program to support rural health care.

Federal funding is contingent upon meeting all applicable program requirements. For more information, visit the HHS Rural Health Transformation webpage.

Public notices and procurement opportunities for Rural Texas Strong will be announced through GovDelivery email notifications and posted on the Electronic State Business Daily website.