Minnesota received $193.1 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 35th of 50 states. The Minnesota Department of Health (MDH) runs the program, which funds five initiatives across Minnesota's 60 rural counties, from chronic disease care and workforce to telehealth, regional care models and health IT.
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 Minnesota'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.
Minnesota's RHTP funds five initiatives across chronic disease care, workforce, access to local services, regional care models and technology. Rural hospitals, FQHCs, CCBHCs, CMHCs and Tribal Nations that take direct Year 1 funding choose activities from at least two of the five, and every MDH funding opportunity maps to one of them.
Helps rural hospitals, clinics, Tribal health programs and FQHCs screen for, manage and treat cardiovascular disease, diabetes and chronic kidney disease in community and clinical settings.
Builds the rural workforce through high school career exposure, earn and train pathways, rural clinical rotations and residencies, and a healthy workplace pilot to reduce burnout.
Expands frontline staffing, community telehealth access points and mobile units for physical and oral health care.
Builds regional models such as provider-to-provider telehealth, EMS treatment in place, mental health urgent care for children and adults, opioid treatment access and obstetric training.
Funds data management, AI-enabled tools, care coordination software, cybersecurity, revenue cycle tools and a statewide rural data network.
Recipients by initiative are in Minnesota'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 a Minnesota solicitation.
Minnesota's plan covers all 60 of the state's 87 counties that it counts as rural, home to about 1.69 million residents, or 29.7% of Minnesotans. Eligibility is set by site rather than by county: MDH defines rural as census tracts with RUCA codes 4 to 10, treats every Critical Access Hospital as eligible, and includes FQHCs outside the Twin Cities metro. Some initiatives also reach a few urban counties, and each funding opportunity states its own geographic requirements.
Minnesota providers apply through MDH notices of grant opportunity and requests for proposals, posted on the RHTP Grants and Contracts page, with some contracts run through the State of Minnesota Supplier Portal. Rural hospitals, FQHCs, CCBHCs, CMHCs and Tribal Nations get formula funding; most other work is competitive. As of November 5, 2026, MDH lists no open grants or contracts and has not announced dates for the next round. Providers and vendors don't apply to CMS directly.
Federal terms follow the money down to every Minnesota 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.
Minnesota's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to Minnesota's Year 1 award, the maximums are:
Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to Minnesota'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.
Minnesota made no state policy commitments in its application, according to CMS, so none of its funding depends on new laws or rules. Its plan does make four program commitments. None is done yet.
Send 70% of Year 1 funds by formula to rural hospitals, with set shares for FQHCs, CCBHCs and CMHCs, and Tribal Nations
Applications closed May 26, 2026. MDH says awards will be announced soonHelp 10 rural sites earn ACGME accreditation for physician residency training
Physician Rural Residency Training Program RFP closed June 30, 2026Mental health urgent care centers across Minnesota offer 24/7 coverage
Pilot payment for rural EMS treatment in place, then draft recommendations for permanent reimbursement
Treatment-in-Place pilot grants closed August 17, 2026Minnesota already belongs to the physician, psychology and physician assistant licensure compacts, but not the nurse or EMS 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 Minnesota'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 Minnesota reported it to CMS. Commitments made after July 31, 2026 are not counted yet.
The CMS report has no recipient column. Search Minnesota's line item descriptions by name.
CMS updates the data after each quarterly state report, starting with the November 30, 2026 filing.
MDH reports $12.5 million awarded to sole-source and competitive recipients, including workforce pathways, Project ECHO, health IT support and EMS treatment in place, and says formula grants to rural providers will be announced soon.
The Minnesota Office of Emergency Medical Services opens $9.2 million in Treatment-in-Place pilot grants for rural ambulance services, with awards of up to $750,000.
MDH posts formula grant notices for 94 rural hospitals, FQHCs, CCBHCs and CMHCs, and Tribal Nations, with hospital awards of up to about $1.4 million in Budget Period 1.
MDH tells the House Health Finance and Policy Committee that 70% of Year 1 funding, about $135 million, will go to rural hospitals by formula.
MDH announces Minnesota's Year 1 award of more than $193 million.
Awards announced after July 31, 2026 are not in the CMS spending data yet. They will appear after the next CMS refresh.
Rural hospitals get the largest share of Minnesota's program, 70% of Year 1 funding by formula, and must pick activities from at least two initiatives. Watch for MDH's formula award announcement and for Year 2 notices, since MDH says Year 2 shifts a larger share toward competitive grants.
MDH has routed early work through state contracts and partners such as the Office of Emergency Medical Services and University of Minnesota programs, posted through the Supplier Portal. Partnering with those vendors and with hospitals that hold formula grants is one route in. Health IT, telehealth, workforce and EMS are the most active lanes.
All award recipients report to MDH every quarter, and RHTP funds can't pay for the provision of health care services. Build tracking for the measures Minnesota reports to CMS before an award lands, and plan to spend Budget Period 1 funds by September 30, 2027.
The Minnesota Department of Health (MDH) runs Minnesota's Rural Health Transformation Program through its Office of Rural Health and Primary Care, using federal funding from the Centers for Medicare & Medicaid Services (CMS). MDH manages the state's plan, posts funding opportunities and answers questions at rural.transformation.mdh@state.mn.us. The program is Minnesota's share of the $50 billion federal Rural Health Transformation Program.
Minnesota received $193,090,618 for Year 1 of the Rural Health Transformation Program, 35th of 50 states. Every state got $100 million in baseline funding, and the rest of Minnesota's award was based on its rural needs, its policy landscape and the strength of its plan. Later years depend on Minnesota's progress.
No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of Minnesota's award each year, about $38.6 million in Year 1, can go to work on existing facilities, such as renovations, accessibility upgrades, HVAC replacement and like-for-like equipment replacement.
Generally no. Minnesota's Year 1 grant notices say RHTP funds can't pay for the provision of health care services, including staffing for mobile units and frontline workers. Federal rules allow provider payments for nonreimbursed services, quality bonuses and outcome-based payments up to 15% of the award each year, about $29.0 million in Year 1, but never to raise rates for services providers already bill.
The RHTP Year One Report tracks how much of Minnesota'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. MDH also lists its sole-source and competitive awardees on its Grants and Contracts page.
These RHT Alliance members serve Minnesota providers, with support that spans 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.