Jun 25, 2025 - Politics & Policy

Senate GOP floats $15 billion fund for rural hospitals

Stef W. Kight

Sen. Thom Tillis, R-N.C., left, speaks with Sen. Mike Crapo, R-Idaho, outside of the Senate Republicans' lunch in the U.S. Capitol — Sen. Thom Tillis, left, speaks with Sen. Mike Crapo. Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

Senate Republicans are eyeing a $15 billion fund for rural hospitals to be added to the "big, beautiful bill," according to a draft plan obtained by Axios.

Why it matters: Some Republicans have been raising the alarm about how changes to the Medicaid provider tax could hurt — and even close — rural hospitals. The new measure is intended to alleviate some of those concerns.

The fund provides $3 billion annually for fiscal year 2027 through 2031, intended to be used by states for things like improving health care access for rural residents, according to the plan.
The plan was been circulated among Senate Finance Committee members. Punchbowl News first reported the plan.

What to watch: It's not clear that the proposal will be enough to appease worried Republicans, such as Sens. Thom Tillis (R-N.C.), Josh Hawley (R-Mo.), Susan Collins (R-Maine.), Jim Justice (R-W.Va.) and others.

Beyond the impact on rural hospitals, there is also concern about the hundreds of thousands of Americans whose health care coverage would be at risk because of the changes to Medicaid in the "big, beautiful bill."

The big picture: The Medicaid changes and rural hospital fund are some of the biggest issues Senate leadership is trying to solve, as they insist on holding a vote on the package late this week.

Senate and House GOP leadership are scrambling to resolve differences to meet President Trump's July 4th deadline for the reconciliation package.

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Senate GOP floats $15 billion fund for rural hospitals

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