Rural Health Workforce Development and Training Program
Recruitment and retention incentives, rural education and residency expansion, provider upskilling and K-12 health career pipelines, led by the Arizona Office of Economic Opportunity.
RHTP state profile · Arizona
Arizona Rural Health Transformation Program
Arizona received $167.0 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 45th of 50 states. The Arizona Health Care Cost Containment System (AHCCCS) runs the program with the state health department and Office of Economic Opportunity, funding four initiatives in rural areas statewide, from workforce training and telehealth to shared services for rural providers.
Year 1 awards, all 50 statesAZ: $167.0M
Texas $281.3MNew Jersey $147.3M
$167.0MYear 1 award, 45th of 50
4Funded initiatives
7 / 15Arizona counties are fully rural
AHCCCSArizona Health Care Cost Containment System
Spending data in the RHTP Year One Report covers December 29, 2025 to July 31, 2026, the latest CMS reporting window.
At a glance
Arizona's program at a glance
The award is fixed for the year. Spending moves every quarter, so Arizona's section of the RHTP Year One Report tracks how much was put to work, and with whom, through July 31, 2026. It updates after each CMS data release.
Year 1 award$166,988,956, 45th of 50 states
Run byArizona Health Care Cost Containment System
Budget Period 1December 29, 2025 to October 30, 2026
Initiatives4
Fully rural counties7 of 15
Spending data through July 31, 2026Arizona's section of the Year One Report →Initiatives
What does Arizona's RHTP fund?
Arizona's RHTP funds four initiatives: workforce, priority health needs, access to care and the financial resilience of rural providers. Each initiative includes several grant programs, and every Arizona funding opportunity maps to one of them.
Priority Health Initiatives Grants Portfolio
Grants for rural behavioral health and substance use treatment, maternal-fetal health, and chronic disease prevention and management, led by AHCCCS and the Arizona Department of Health Services.
Making Rural Healthcare Accessible
Telehealth hubs, remote monitoring and care coordination, plus pilots of mobile and satellite clinics and new care and payment models.
Making Rural Healthcare Resilient
Diagnostic equipment, EHR upgrades and cybersecurity, shared services consortiums and technical assistance to lower rural providers' costs.
Recipients by initiative are in Arizona's section of the RHTP Year One Report.
Source documents
Arizona's full plan is public
The approved plan has more detail than any summary: goals, partners, metrics and timelines for each initiative. Read it before responding to an Arizona solicitation.
PDFAHCCCSArizona RHT Program NarrativeThe approved plan from AHCCCS, revised January 30, 2026, including all four initiatives and Arizona's policy commitments.PDFAHCCCSArizona RHT Budget NarrativeThe approved budget, revised February 17, 2026, with planned spending for each initiative and grant program.PDFAHCCCSArizona RHT Program White PaperAHCCCS's short overview of the plan, funding and timeline.PDFCMSCMS 50-State SpotlightsCMS's short profile of each state's program, including Arizona's.
Fully rural county (7)Other counties (8)
Eligibility
Which Arizona counties are eligible for RHTP funding?
Arizona's plan covers all seven fully rural counties (Apache, Gila, Graham, Greenlee, La Paz, Navajo and Santa Cruz) and the rural-designated areas inside the state's other eight counties, using HRSA's definition of rural. Eligibility depends on where services are delivered, not on county lines, and Tribal applicants qualify when they serve HRSA-designated rural areas. Each solicitation states its own geographic requirements.
How to apply
How can Arizona providers apply for RHTP funding?
Arizona providers apply through competitive Requests for Grant Applications (RFGAs) from AHCCCS, the Arizona Department of Health Services and the Arizona Office of Economic Opportunity. They are listed on the AHCCCS RHTP page and submitted through the Euna Grants portal. None of the posted Year 1 rounds are still open, and Year 2 dates have not been announced. Providers and vendors don't apply to CMS directly.
- Match the work to an initiative.Funding only goes to work that fits one of the four, and each grant lists its own award tiers and eligibility.
- Join the AZ RHTP email list.AHCCCS announces new grant applications through its RHTP updates list and the Funding Opportunities table on its RHTP page.
- Register in Euna Grants.Arizona's RHTP applications are submitted through Euna Grants (formerly eCivis). SAM.gov registration is standard for federally funded grants and contracts.
- Plan for federal rules.Grant recipients follow federal grant, reporting and audit rules. A Single Audit applies at $1 million or more in federal spending a year.
- Ask AHCCCS directly.Email RHTP@azahcccs.gov. Questions about an open grant go to Procurement@azahcccs.gov.
Federal terms
Four rules that shape every award
Federal terms follow the money down to every Arizona recipient.
Grants and contracts carry different obligations
A subaward makes your organization a subrecipient that carries out part of the program, with federal reporting and audit requirements. A contract pays for goods or services, with lighter requirements.
New rounds follow CMS budget approval
States can't post funding opportunities until CMS approves their budget, so windows can open months into a budget period.
Workforce incentives need a rural commitment
Recruitment and retention payments require clinicians to commit to serving rural communities for at least five years.
Recipients must disclose the federal funding
Under the Stevens Amendment, websites, social posts and other public materials about a funded project must name the federal funding.
Allowable costs
What can Arizona's RHTP funding pay for?
Arizona's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to Arizona's Year 1 award, the maximums are:
Capital and infrastructure20% of award
About $33.4M
Provider payments15% of award
About $25.0M
Administrative costs10% of award
About $16.7M
Rural Tech Catalyst Fund10% or $20M, whichever is less
About $16.7M
Replacing an existing EMR system5% of award
About $8.3M
Provider payments and capital
Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to Arizona's plan. They can't raise rates for services providers already bill.
Capital funds go to existing facilities: renovations, accessibility upgrades, HVAC and like-for-like equipment replacement.
Off limits
- New construction, demolition and major expansions
- Cosmetic work such as painting, carpet or decor
- Clinician salaries at facilities that use non-compete clauses
- Home broadband installation and service
- Costs already covered by other federal or state funding
Policy commitments
Arizona's policy commitments carry deadlines
Arizona committed to two policy actions in its application, joining the PA and EMS licensure compacts. Both are done, well ahead of the December 31, 2027 deadline.
PA licensure compact
Join the Physician Assistant Licensure Compact
HB 2190 signed February 2026EMS licensure compact
Join the EMS Personnel Licensure Interstate Compact
SB 1235 signed May 22, 2026Arizona already belongs to the physician, nurse, psychology, physical therapy, occupational therapy, counseling and social work licensure compacts.
Years 2 to 5
$40B
Future awards depend on progress
Year 1 is not a guaranteed annual amount. CMS plans up to $40 billion more nationwide through 2030 and rescores every state each year on progress, data and policy actions.
Unobligated money leaves the state
Funds not obligated by the end of a budget period can't be obligated later and are redistributed to other states.
Funds can be clawed back
CMS can withhold, reduce or recover money for unallowable costs, unapproved plan changes or missed policy commitments. States get 90 days to fix a violation, and most decisions can't be appealed.
Oversight is growing
CMS's Office of Rural Health Transformation plans site visits in all 50 states in 2026. Audits start in 2027.
Method
Reading Arizona's spending data
Use the numbers in Arizona's section of the RHTP Year One Report to understand direction and pace, not as an audit.
Put to work is not paid out
Obligated money is signed to a contract or grant. Cash reaches recipients later.
Through July 31, 2026 only
The data covers December 29, 2025 to July 31, 2026, as Arizona reported it to CMS. Commitments made after July 31, 2026 are not counted yet.
Recipients sit inside line items
The CMS report has no recipient column. Search Arizona's line item descriptions by name.
Quarterly refresh
CMS updates the data after each quarterly state report, starting with the November 30, 2026 filing.
Announcements
Major Arizona announcements
The Arizona Office of Economic Opportunity opens its first RHTP grants: $1 million in provider retention and well-being microgrants and $3 million for a Transition to Practice program.
AHCCCS posts its final Year 1 grant applications, including $8.5 million for rural behavioral health access points, clinics and crisis services and $5 million for shared services consortiums.
AHCCCS opens $30 million for diagnostic equipment, EHR upgrades and data sharing, and $17 million for telehealth and care coordination.
AHCCCS opens Arizona's first RHTP grant application, a $1.5 million opioid antagonist distribution initiative.
Governor Hobbs signs SB 1235, making Arizona the 27th state in the EMS Personnel Licensure Interstate Compact.
Arizona joins the PA Licensure Compact as the 22nd state, meeting one of its RHTP policy commitments.
CMS awards Arizona $167.0 million for Year 1.
Awards announced after July 31, 2026 are not in the CMS spending data yet. They will appear after the next CMS refresh.
Timeline
Key dates
- Dec 29, 2025Year 1 award; Budget Period 1 begins
- Feb 20, 2026PA Licensure Compact law enacted
- May 22, 2026EMS Compact law signed
- Jul 31, 2026End of the first CMS reporting window; Year One Report spending data runs through this date
- Oct 23, 2026Last posted Year 1 application deadline (Office of Economic Opportunity workforce grants)
- Oct 30, 2026Deadline to obligate Year 1 funds; Budget Period 1 ends
- Nov 30, 2026Quarterly reports due; CMS refreshes funding data
- Jan 27, 2027Annual federal financial report for Budget Period 1 due
- Sep 30, 2027Deadline to spend Year 1 funds
- 2030Final year of the five-year program
Implications
What this means
For rural hospitals
Arizona's largest Year 1 grants went to diagnostic equipment and EHR upgrades ($30 million) and the Rural Health Innovative Care Pilot Program ($21 million), with award tiers from $10,000 to $5 million. Watch for Year 2 rounds and for the technical assistance grant on operational and fiscal performance.
For partners and vendors
Arizona puts most of its funding into grants to providers, counties, Tribes and universities, with limited vendor procurement. Partnering with grantees is the main route in. Telehealth, remote monitoring, EHR and cybersecurity, mobile care and shared billing, IT and HR services are the most active lanes.
For applicants and grantees
Build tracking for the measures Arizona reports to CMS before an award lands. Subrecipients can't opt out of reporting, and their results feed Arizona's annual rescoring. Applicants are expected to show partnership with Tribal health organizations, and Year 1 funds must be spent by September 30, 2027.
FAQ
Arizona RHTP FAQs
Who runs Arizona's Rural Health Transformation Program?
The Arizona Health Care Cost Containment System (AHCCCS), the state's Medicaid agency, runs Arizona's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). AHCCCS manages the plan with the Arizona Department of Health Services and the Arizona Office of Economic Opportunity, posts funding opportunities and answers questions at RHTP@azahcccs.gov. The program is Arizona's share of the $50 billion federal Rural Health Transformation Program.
How much RHTP funding did Arizona receive?
Arizona received $166,988,956 for Year 1 of the Rural Health Transformation Program, 45th of 50 states. Every state got $100 million in baseline funding, and the rest of Arizona's award was based on its rural needs, its policy commitments and the strength of its plan. Later years depend on Arizona's progress.
Can Arizona RHTP funding pay for construction?
No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of Arizona's award each year, about $33.4 million in Year 1, can go to work on existing facilities, such as renovations, accessibility upgrades, HVAC replacement and like-for-like equipment replacement.
Can Arizona providers use RHTP funding to pay for patient care?
Only for care that insurance doesn't already pay for. Provider payments can cover nonreimbursed services, quality bonuses and outcome-based payments tied to Arizona's plan, up to 15% of the award each year, about $25.0 million in Year 1. They can't raise rates for services providers already bill.
Where can I see how Arizona is spending its RHTP funding?
The RHTP Year One Report tracks how much of Arizona's award was put to work through July 31, 2026, by initiative and recipient, using state-reported data from CMS, and is updated after each CMS data release. Arizona opened its first grant applications in July 2026 and scheduled award notices for September, so most Year 1 grants will appear after the next CMS refresh.
The Alliance
RHT Alliance members serving Arizona
These RHT Alliance members serve Arizona providers, with support that spans virtual nursing, virtual care, remote monitoring, health data, diagnostics, patient education, legal counsel and grant writing.
Azalea HealthCloud EHR and billing with AI-assisted charting for rural hospitals and clinics.
Brennan Manna Diamond (BMD Law)Healthcare regulatory, compliance and transaction counsel.
CorstrataTelehealth access to board-certified wound, ostomy and continence nurses.
Equum MedicalTelehealth-enabled physician coverage across specialties.
Health Recovery SolutionsRemote patient monitoring and care management at home.
InterSystemsHealth data platforms and interoperability.
Medical Equipment SourceDigital pathology, mobile labs and lab equipment services.
Rural Health Transformation Funding NetworkGrant writing support for RHTP funding opportunities.
Self Care DecisionsEvidence-based triage that directs patients to the right level of care.
Solid StartsInfant feeding guidance and education for families, built by pediatric feeding specialists.
Teledentistry.com24/7 virtual dental evaluations and emergency triage.
VitalChatVirtual nursing and continuous audio and video care across hospitals.
WebMD IgniteMedically reviewed patient education and outreach, including its HEART rural program.Follow Arizona's money as it moves
The RHTP Year One Report tracks obligations, initiatives and recipients for all 50 states after each CMS data release.