MISSISSIPPI

Mississippi Receives Nearly $205 Million for Rural Health Program

12m ago · November 11, 2026 · 2 min read

Why It Matters

Mississippi will receive nearly $205 million in federal funding for the second year of the Rural Health Transformation Program. The award comes as rural areas are expected to face $137 billion in federal Medicaid cuts over 10 years.

What Happened

Federal officials announced Monday that Mississippi had been awarded nearly $205 million for the program’s 2027 fiscal year. The amount is about $1.2 million below the state’s first-year award.

The five-year program was created through President Donald Trump’s tax-and-spending law, which passed in July 2025. All 50 states received awards, with Texas and Alaska receiving the largest shares and Connecticut and New Jersey receiving the smallest amounts.

Program funding can support rural healthcare assessments, emergency medical services capacity assessments, technology upgrades, telehealth and facility improvements. Half of the $50 billion federal investment will be distributed evenly among states with approved applications, while the other half will be informed partly by progress on approved plans.

Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said, “Rural Americans have life expectancies three years shorter than their urban peers, but President Trump’s Rural Health Transformation Program is funding the historic investments necessary to close that gap.”

By the Numbers

Nearly $205 million — Mississippi’s second-year program award

2027 — fiscal year of Mississippi’s second-year award

About $1.2 million — amount by which the second-year award is below the first-year award

Five years — duration of the program

50 — states receiving awards

$50 billion — federal investment in rural healthcare

$137 billion — estimated federal Medicaid cuts to rural areas over 10 years

About $100 million annually — expected reduction in net Medicaid payments to Mississippi providers beginning in July 2028

Over $94 million — Mississippi program funding committed as of July 31

Over $10 million — amount obligated for program operations

$32 million — grants announced by Gov. Tate Reeves

Zoom Out

Program funds are expected to offset roughly a third of the estimated Medicaid cuts affecting rural areas. Mississippi providers’ net Medicaid payments are expected to decline by about $100 million annually beginning in July 2028.

Mississippi had committed more than $94 million in program funding as of July 31, including more than $10 million obligated for program operations. In October, Gov. Tate Reeves announced $32 million in grants for healthcare workforce development and psychiatric emergency services.

What’s Next

Mississippi closed applications last week for a statewide health information exchange, though a vendor has not been announced. The state is also seeking applications from small rural providers for electronic health record adoption or replacement and for healthcare-improvement pilot programs.

Last updated: Nov 11, 2026 at 5:10 AM GMT+0000 · Sources available
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