Oregon to Receive $197.3 Million in Federal Funding to Strengthen Rural Healthcare
Investment targets access, workforce support, disease prevention, and health technology statewide
PORTLAND, Ore. — Oregon is set to receive $197.3 million in federal funding beginning in 2026 to improve healthcare access and outcomes in rural and frontier communities, according to an announcement from the U.S. Centers for Medicare and Medicaid Services.
The funding will be administered by the Oregon Health Authority (OHA) through the Oregon Rural Health Transformation Program. The initiative is designed to support community-driven projects that expand access to care, strengthen chronic disease management and prevention, stabilize and grow the healthcare workforce, and increase the use of health data and technology in rural areas.
As part of the program, OHA will operate a dedicated Tribal initiative that provides direct funding to the Nine Federally Recognized Tribes in Oregon. The initiative is intended to support Tribes in improving healthcare access and outcomes in a manner that respects the government-to-government relationship.
State officials said the funding approach reflects extensive engagement with rural communities. OHA conducted statewide outreach to inform its original proposal and plans to continue working closely with hospitals, clinics, providers, patients, and community partners as the program is implemented over the next five years.
“Oregon is resolved to steward this funding effectively, ensuring it benefits rural communities across the entire state,” said Tina Kotek. “We look forward to working in partnership with the Centers for Medicare and Medicaid Services to advance rural health transformation and improve the lives of our rural and frontier residents.”
OHA Health Policy and Analytics Director Clare Pierce-Wrobel said the funding represents a critical opportunity, even as future federal healthcare funding remains uncertain.
“Everyone deserves access to quality healthcare, no matter where they live,” Pierce-Wrobel said. “While this much-needed boost can’t make up for the substantial federal funding cuts we anticipate in the coming years, OHA is committed to using this opportunity to support as many promising and sustainable rural health solutions as possible.”
The funding is being awarded through the Rural Health Transformation Program, established under House Resolution 1, the federal budget reconciliation bill signed into law in July 2025. Nationwide, the program will distribute $50 billion between 2026 and 2031, with individual state allocations reviewed and adjusted annually based on progress.
Oregon initially requested $200 million per year, or $1 billion over five years, but will scale its plans to match the awarded funding level. OHA is expected to finalize program terms and its budget with federal officials in January.
Oversight and advisory support will include the Rural Health Coordinating Council, which advises the Oregon Office of Rural Health.
OHA plans to distribute funding in phases beginning in 2026. The agency intends to issue Immediate Impact Awards for strategic projects that can begin within two months of receiving funds, followed by Catalyst Awards by mid-2026 for projects ready to move forward through a formal application process. Applications for Catalyst Awards are expected to open in spring 2026. Additional competitive funding rounds in later years will focus on long-term sustainability, shared infrastructure, and cross-sector collaboration.
The Oregon Rural Health Transformation Program is fully funded by CMS through the U.S. Department of Health and Human Services, totaling $197,271,578. OHA noted that the contents of its announcement do not necessarily reflect the official views or endorsement of CMS, HHS, or the U.S. government.
More information is available on OHA’s Rural Health Transformation Program webpage, where organizations can also sign up for email updates regarding funding opportunities.
Cover image: National Cancer Institute on Unsplash
