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January 11, 2026 – Illinois has been awarded $193,418,216 million per year for five years through the $50 billion federal Rural HealthcareTransformation Program (RHTP) fund, which will be utilized to expand equitable access to healthcare and to eliminate barriers to care that many residents of rural communities face. All 50 states applied for the RHTP funding, and a total of $10 billion will be available each year over five years, beginning in fiscal year 2026.
According to an estimate from KFF, the Trump Administration’s budget bill is expected to cut $137 billion from rural healthcare providers nationally, nearly three times the $50 billion allocated in the fund.
The Illinois Department of Healthcare and Family Services (HFS), in strategic partnership with its sister agencies and interested parties, utilized the federal Centers for Medicare & Medicaid’s (CMS) five strategic goals from the RHTP Notice of Funding Opportunity (NOFO), to develop a comprehensive plan to strengthen Illinois’ rural healthcare system for the future. The plan outlines a vision built on three key categories of initiatives designed to incentivize health system transformation and create regional partnerships, increase the use of technology and mobile health services, and expand the rural healthcare workforce within the state.
