Illinois received $193.4 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 33rd of 50 states. The Illinois Department of Healthcare and Family Services (HFS) runs the program, which funds eight initiatives across the 85 Illinois counties with rural census tracts, from hospital transformation grants to virtual care technology, EMS and workforce training.
Spending data in the RHTP Year One Report covers December 29, 2025 to July 31, 2026, the latest CMS reporting window.
The award is fixed for the year. Spending moves every quarter, so Illinois'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.
Illinois's RHTP funds eight initiatives in three areas: transforming rural healthcare delivery, overcoming geographic barriers to care and building a resilient rural workforce. Every Illinois funding opportunity maps to one of these eight.
Planning grants for rural hospitals in Year 1, then competitive awards in Years 2 to 5 to reshape service lines, build regional partnerships and test value-based payment, plus support for four existing Healthcare Transformation Collaboratives.
Funding for rural primary care and behavioral health providers, through the Illinois Primary Health Care Association and the Community Behavioral Health Association, to build integrated, team-based care.
Formula funding to rural hospitals, through the Illinois Critical Access Hospital Network, for chronic disease prevention programs run with local health departments and other partners.
Grants to EMS Resource Hospitals through the Illinois Department of Public Health for treat-in-place care, training and staffing, plus mobile clinics and mobile crisis units.
Funding for rural hospitals and clinics to adopt vetted technology such as EHR upgrades, cybersecurity and telehealth, through the Illinois Critical Access Hospital Network's Illinois Connected Care Collaborative (IC3).
Scholarships, fellowships, relocation and retention bonuses tied to rural service commitments of at least five years, plus expanded nursing and allied health programs at rural community colleges.
New and expanded community college certification programs for roles such as community health workers, doulas, EMTs and peer support staff.
Health career programs for rural high school students, such as job shadowing and mentorship, through the Area Health Education Center at the University of Illinois College of Medicine Rockford.
Recipients by initiative are in Illinois's section of the RHTP Year One Report.
The approved plan has more detail than any summary: goals, partners, metrics and timelines for each initiative. Read it before responding to an Illinois funding opportunity.
Illinois's plan targets the 85 of the state's 102 counties that contain rural census tracts under the federal Office of Rural Health Policy (HRSA) definition, home to about 1.9 million residents. In counties that are only partly rural, eligibility follows the rural census tracts. Each funding opportunity sets its own rules: hospital planning grants, for example, went to Critical Access Hospitals anywhere in the state and to other acute care hospitals with at least 15% of discharges from rural patients.
Most of Illinois's Year 1 funding flows through named intermediaries, such as the Illinois Critical Access Hospital Network, the Illinois Primary Health Care Association, the Community Behavioral Health Association, the Illinois Department of Public Health and the Illinois Community College Board, which then fund local providers. Hospitals apply to HFS directly through Notices of Funding Opportunity in the state's Euna grants portal. Providers and vendors don't apply to CMS directly.
Federal terms follow the money down to every Illinois recipient.
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.
States can't post funding opportunities until CMS approves their budget, so windows can open months into a budget period.
Recruitment and retention payments require clinicians to commit to serving rural communities for at least five years.
Under the Stevens Amendment, websites, social posts and other public materials about a funded project must name the federal funding.
Illinois's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to Illinois's Year 1 award, the maximums are:
Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to Illinois'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.
Illinois committed to two policy actions in its application: joining the Nurse Licensure Compact and the PA Licensure Compact. Neither is done, and bills for both did not pass in the spring 2026 legislative session. CMS can reduce or recover funding if commitments slip.
Pass a law to join the Nurse Licensure Compact
House Bill 4369 introduced January 2026; did not pass in the spring 2026 sessionPass a law to join the PA Licensure Compact
Senate Bill 3074 filed 2026; did not pass in the spring 2026 sessionIllinois already belongs to the physician and psychology licensure compacts.
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.
Funds not obligated by the end of a budget period can't be obligated later and are redistributed to other states.
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.
CMS's Office of Rural Health Transformation plans site visits in all 50 states in 2026. Audits start in 2027.
Use the numbers in Illinois's section of the RHTP Year One Report to understand direction and pace, not as an audit.
Obligated money is signed to a contract or grant. Cash reaches recipients later.
The data covers December 29, 2025 to July 31, 2026, as Illinois reported it to CMS. Commitments made after July 31, 2026 are not counted yet.
The CMS report has no recipient column. Search Illinois's line item descriptions by name.
CMS updates the data after each quarterly state report, starting with the November 30, 2026 filing.
The HFS RHTP Advisory Committee holds its third quarterly meeting of 2026.
Year 1 grant agreements take effect, including about $50 million to the Illinois Critical Access Hospital Network for hospital technology, disease prevention and workforce, $18 million for mobile clinics and crisis units, and $16.5 million for EMS Resource Hospitals.
Legislative appointees, including State Senator Chapin Rose, are named to the RHTP Advisory Workgroup, which meets quarterly through 2032.
HFS opens $28.2 million in hospital planning grants for 97 eligible rural hospitals, about $290,000 each, with applications due June 17, 2026.
HFS announces Illinois's $193.4 million Year 1 award.
Awards announced after July 31, 2026 are not in the CMS spending data yet. They will appear after the next CMS refresh.
Hospital Transformation is Illinois's largest initiative. Year 1 planning grants of about $290,000 each fund needs assessments and transformation plans, and competitive implementation awards of $44 million to $52 million a year are planned for Years 2 to 5, subject to CMS approval. Critical Access Hospitals can also draw technology, disease prevention and workforce funds through ICAHN.
Illinois routes most funding through intermediaries: ICAHN for hospital technology, IPHCA and CBHA for clinics and behavioral health, IDPH for EMS, and ICCB and the University of Illinois for workforce. Partnering with those organizations, or with the hospitals they fund, is the main route in. Virtual care technology, team-based care, mobile health and workforce training are the most active lanes.
Register and prequalify in the GATA Grantee Portal before a round opens. Build tracking for the measures Illinois reports to CMS before an award lands. Subrecipients can't opt out of reporting, and their results feed Illinois's annual rescoring.
The Illinois Department of Healthcare and Family Services (HFS) runs Illinois's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). HFS manages the state's plan, funds intermediaries such as the Illinois Critical Access Hospital Network, posts hospital funding opportunities and takes advice from a quarterly RHTP Advisory Committee. The program is Illinois's share of the $50 billion federal Rural Health Transformation Program.
Illinois received $193,418,216 for Year 1 of the Rural Health Transformation Program, 33rd of 50 states. Every state got $100 million in baseline funding, and the rest of Illinois's award was based on its rural needs, its policy commitments and the strength of its plan. Later years depend on Illinois's progress.
No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of Illinois's award each year, about $38.7 million in Year 1, can go to work on existing facilities, such as renovations, accessibility upgrades, HVAC replacement and like-for-like equipment replacement.
Only for care that insurance doesn't already pay for. Provider payments can cover nonreimbursed services, quality bonuses and outcome-based payments tied to Illinois's plan, up to 15% of the award each year, about $29.0 million in Year 1. They can't raise rates for services providers already bill.
The RHTP Year One Report tracks how much of Illinois'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. Grant agreements that took effect August 1, 2026, such as about $50 million to the Illinois Critical Access Hospital Network, will appear after the next CMS refresh.
These RHT Alliance members serve Illinois providers, with support that spans EHR and billing, virtual nursing, virtual care, remote monitoring, health data, diagnostics, patient education and grant writing.
Azalea HealthCloud EHR and billing with AI-assisted charting for rural hospitals and clinics.
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.The RHTP Year One Report tracks obligations, initiatives and recipients for all 50 states after each CMS data release.