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.