States get first awards from rural health fund
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Megan Robinson/Axios
The Trump administration on Monday announced the first awards to states from the $50 billion rural health fund in this summer's Republican megabill — including a big award for Alaska, whose lawmakers' support was critical to the bill's passage.
Why it matters: The awards highlighted which states are winners and losers, as officials brace for Medicaid cuts also included in the GOP bill.
Driving the news: The average award for 2026, the first of five years, is $200 million.
- Alaska, a rural state with unique challenges for health care access, got the second most funding after Texas, receiving $272 million.
- Sen. Lisa Murkowski (R-Alaska) voted for the bill after being the focus of hours of negotiations with GOP leaders.
- The Wall Street Journal reported over the summer that officials had reassured Alaska's GOP senators that the state would do well in allotments from the fund.
Between the lines: Half the funding is distributed equally among states, benefitting those with smaller populations on a per capita basis.
- The other half of funding is distributed based on factors including state-level policies, such as efforts to "make rural America healthy again" like implementing the presidential fitness test in schools.
What they're saying: "States are stepping forward with bold, creative plans to expand rural access, strengthen their workforces, modernize care, and support the communities that keep our nation running," Centers for Medicare and Medicaid Services chief Mehmet Oz said in a statement.
The big picture: The $50 billion fund was added to the GOP budget bill relatively late in the process amid concerns from some more moderate senators about the extend of Medicaid cuts in the bill.
- Critics still argue that the $50 billion fund will not make up for the almost $1 trillion in Medicaid cuts.
Go deeper: Rural health providers worry about losing money race
