Home/States/New Mexico
RHTP state profile · New Mexico

New Mexico Rural Health Transformation Program

New Mexico received $211.5 million in Year 1 of the $50 billion federal Rural Health Transformation Program, 13th of 50 states. The New Mexico Health Care Authority (HCA) runs the program, which funds five initiatives for rural, frontier and Tribal communities in all 33 counties, from regional specialty care hubs to workforce training and a statewide health data hub.

$211.5MYear 1 award, 13th of 50
5Funded initiatives
26 / 33New Mexico counties are rural
HCANew Mexico Health Care Authority

Spending data in the RHTP Year One Report covers December 29, 2025 to July 31, 2026, the latest CMS reporting window.

At a glance

New Mexico's program at a glance

The award is fixed for the year. Spending moves every quarter, so New Mexico'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$211,484,740, 13th of 50 states
Run byNew Mexico Health Care Authority
Budget Period 1December 29, 2025 to October 30, 2026
Initiatives5
Rural counties26 of 33
Spending data through July 31, 2026New Mexico's section of the Year One Report →
Initiatives

What does New Mexico's RHTP fund?

New Mexico's RHTP funds five initiatives across specialty and chronic disease care, workforce, community-led projects, provider sustainability and health data. Healthy Horizons is the largest, at about $79 million in Year 1, and every HCA funding opportunity maps to one of the five.

01

Healthy Horizons: Expanding Specialty Care Access and Chronic Disease Management

Six regional hubs bring specialty, maternal, behavioral health and chronic disease care closer to home through local networks, e-consults and remote care tools.

02

Rooted in New Mexico: Building Tomorrow's Rural Health Workforce

Recruits, trains and keeps rural clinicians through school pathways, rural residencies and training sites, incentives and mentorship.

03

Rural Health Innovation Fund: Enabling Community-Designed, Community-Led Change

Competitive grants for locally designed projects, from new services and equipment to shared service models and care coordination.

04

Bridge to Resilience: Rural Health Sustainability and Innovation Center

A statewide center offering rural providers technical assistance, shared services, training and data support to strengthen their finances.

05

Rural Health Data Hub: Establishing a Health Analytics Platform

A secure statewide platform for rural health data, analytics, performance tracking and public reporting.

Recipients by initiative are in New Mexico's section of the RHTP Year One Report.

Rural county (26)Metro counties (7)
Eligibility

Which New Mexico counties are eligible for RHTP funding?

All 33 New Mexico counties can receive RHTP funding, because the plan uses the HRSA rural definition and every county has at least one rural census tract; 26 of the 33 are rural, non-metropolitan counties. About 698,000 people, roughly a third of New Mexicans, live in rural areas, and about 10% live in frontier and remote areas. Funding is aimed at rural, frontier and Tribal communities, and each solicitation states its own eligibility. Healthy Horizons funds flow through six regional hubs that together cover every county.

How to apply

How can New Mexico providers apply for RHTP funding?

New Mexico providers apply through requests for proposals (RFPs) and applications (RFAs) from the New Mexico Health Care Authority, posted on HCA's RHT Program page and submitted through its Submittable application portal. No rounds are open as of November 5, 2026, and Year 2 dates have not been announced. Providers and vendors don't apply to CMS directly.

  1. Match the work to an initiative.Funding only goes to work that fits one of the five.
  2. Watch for new rounds.Sign up for HCA's RHT updates list, and check the RHT Program page and the Submittable portal.
  3. Connect with your regional hub.Healthy Horizons hubs must pass at least 90% of their awards to local projects, so local providers can apply through their region's hub.
  4. Register in SAM.gov.It is standard for federally funded grants and contracts.
  5. 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.
  6. Ask HCA directly.Use HCA's Contact Us page, or the RFP or RFA manager named in each solicitation.
Federal terms

Four rules that shape every award

Federal terms follow the money down to every New Mexico 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 New Mexico's RHTP funding pay for?

New Mexico's RHTP funding can pay for work on existing facilities, uncovered care, technology and administration, within federal caps on each use. Applied to New Mexico's Year 1 award, the maximums are:

Capital and infrastructure20% of award
About $42.3M
Provider payments15% of award
About $31.7M
Administrative costs10% of award
About $21.1M
Rural Tech Catalyst Fund10% or $20M, whichever is less
$20.0M
Replacing an existing EMR system5% of award
About $10.6M

Provider payments and capital

Provider payments cover services insurance doesn't pay for, quality bonuses and outcome-based payments tied to New Mexico'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

New Mexico's policy commitments carry deadlines

New Mexico committed to seven policy actions in its application. One is done. CMS can reduce or recover funding if the rest slip.

Physician licensure compact

Join the Interstate Medical Licensure Compact

SB 1 signed February 5, 2026
Done

Physician assistant licensure compact

Pass a law joining the PA Licensure Compact

HB 45 stalled in the Senate in 2026
Dec 31, 2028

EMS licensure compact

Pass a law joining the EMS Personnel Licensure Interstate Compact

HB 31 stalled in the Senate in 2026
Dec 31, 2028

Psychology licensure compact

Pass a law joining the Psychology Interjurisdictional Compact

HB 33 passed the House February 6, 2026, then stalled in the Senate
Dec 31, 2028

Nutrition education for physicians

Pass a law requiring nutrition continuing medical education for physicians

Dec 31, 2028

Presidential Fitness Test

Bring the Presidential Fitness Test to schools by law or regulation

Dec 31, 2028

Remote patient monitoring

Increase Medicaid use of remote patient monitoring billing codes

No date given

New Mexico already belonged to the nurse licensure compact, and joined the social work compact in February 2026.

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 New Mexico's spending data

Use the numbers in New Mexico'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 New Mexico 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 New Mexico'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 New Mexico announcements

  • CMS announces $74 million for six Healthy Horizons regional hubs, led by Cibola General Hospital and Gallup Community Health, UNM, Eastern Plains Council of Governments, Gila Regional Medical Center and Nor-Lea Hospital District.

  • HCA opens applications for a new RHT Program Stakeholder Advisory Committee of rural and Tribal residents.

  • HCA releases an RFP to help run Rooted in New Mexico, covering workforce development and rural graduate medical education.

  • HCA opens the $47 million Rural Health Innovation Fund for community-designed rural health projects.

  • HCA opens $76.2 million in Healthy Horizons funding for regional hubs.

  • HCA issues an RFP for a vendor to run the Center for Rural Health Sustainability and Innovation.

  • Governor Lujan Grisham signs SB 1, bringing New Mexico into the Interstate Medical Licensure Compact.

  • HCA announces New Mexico's $211.5 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.

Timeline

Key dates

  1. Dec 29, 2025Year 1 award; Budget Period 1 begins
  2. Feb 5, 2026Interstate Medical Licensure Compact signed into law
  3. Jul 2, 2026Healthy Horizons hub applications close
  4. Jul 31, 2026End of the first CMS reporting window; Year One Report spending data runs through this date
  5. Aug 3, 2026Rural Health Innovation Fund applications close
  6. Sep 4, 2026Rooted in New Mexico proposals close
  7. Sep 21, 2026Rural Health Data Hub proposals close; CMS announces $74 million for Healthy Horizons hubs
  8. Oct 30, 2026Budget Period 1 ends
  9. Nov 30, 2026Quarterly reports due; CMS refreshes funding data
  10. Sep 30, 2027Deadline to spend Year 1 funds
  11. Dec 31, 2028Licensure compact, nutrition education and fitness test deadlines
  12. 2030Final year of the five-year program
Implications

What this means

For rural hospitals

Healthy Horizons is New Mexico's largest initiative, and its six regional hubs must send at least 90% of their awards to local providers and partners. Contact your region's hub about its regional plan, and watch for the Center for Rural Health Sustainability and Innovation, which will offer technical assistance, revenue cycle help and shared services.

For partners and vendors

HCA buys program support through RFPs, including an administrative services organization, the sustainability center, Rooted in New Mexico and the data hub administrator. Partnering with the selected hubs and contractors is another route in. Specialty care, telehealth and remote monitoring, workforce and health data are the most active lanes.

For applicants and grantees

Build tracking for the measures New Mexico reports to CMS before an award lands. Subrecipients can't opt out of reporting, and their results feed New Mexico's annual rescoring. HCA's funding notices bar paying for services that Medicaid, Medicare or private insurance already cover.

FAQ

New Mexico RHTP FAQs

Who runs New Mexico's Rural Health Transformation Program?

The New Mexico Health Care Authority (HCA), which includes the state's Medicaid program, runs New Mexico's Rural Health Transformation Program, using federal funding from the Centers for Medicare & Medicaid Services (CMS). HCA manages the state's plan, posts funding opportunities on its RHT Program page and takes questions through its Contact Us page. A new stakeholder advisory committee of rural and Tribal residents advises on implementation. The program is New Mexico's share of the $50 billion federal Rural Health Transformation Program.

How much RHTP funding did New Mexico receive?

New Mexico received $211,484,740 for Year 1 of the Rural Health Transformation Program, 13th of 50 states. Every state got $100 million in baseline funding, and the rest of New Mexico's award was based on its rural needs, its policy commitments and the strength of its plan. Later years depend on New Mexico's progress.

Can New Mexico RHTP funding pay for construction?

No. RHTP funds can't pay for new construction, demolition or major expansions. Up to 20% of New Mexico's award each year, about $42.3 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 New Mexico 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 New Mexico's plan, up to 15% of the award each year, about $31.7 million in Year 1. They can't raise rates for services providers already bill.

Where can I see how New Mexico is spending its RHTP funding?

The RHTP Year One Report tracks how much of New Mexico'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. Awards announced after July 31, such as $74 million in September 2026 for six Healthy Horizons regional hubs, will appear after the next CMS refresh.

Follow New Mexico's money as it moves

The RHTP Year One Report tracks obligations, initiatives and recipients for all 50 states after each CMS data release.

Last updated: November 5, 2026. Sources: HCA, CMS and state-reported RHTP data.