The federal government announced last week that Florida has been awarded more than $209 million in fiscal year 2026 from the Rural Health Transformation Program (RHTP) to strengthen rural health care. The Florida Hospital Association (FHA), which advocated for the funding, praised the federal government’s major investment in Florida and praised its impact on communities across the Sunshine State.
“Florida’s rural hospitals are the lifelines of their communities, providing access to care for families living in rural areas,” said FHA President and CEO Mary C. Mayhew. “This critical funding will not only maintain these essential lifelines, but strengthen them. By building a stronger workforce, deploying the latest technology, and establishing collaborative partnerships across rural care providers, we can better meet the needs of all communities from the Panhandle to the Glades.”
Faced with rising costs and low occupancy rates, five of Florida’s rural hospitals have closed in the past 20 years, and three have converted to acute or urgent care. Given the critical role rural hospitals play in providing timely care, the long-term survival of rural hospitals is a serious concern and a top priority for the Florida Hospital Association.
When the federal government created the Rural Healthcare Transformation Program as part of the “One Big Beautiful Bill,” which was signed into law on July 4, 2025, FHA worked with other stakeholders to develop tailored feedback for the Florida Healthcare Administration Agency (AHCA) to consider as part of application development. Ultimately, more than 60 pages of data, analysis, and recommendations were provided to support agency operations.
“Floridians have a right to timely, quality care no matter where they live,” Mayhew said. “The Rural Health Transformation Program provides a comprehensive framework and an influx of resources to ensure rural residents are not left behind as Florida’s health care system evolves.”
The $209 million awarded in fiscal year 2026 represents the single largest federal investment in rural health care in Florida. The award is the first in a five-year grant program funded by $10 billion annually, totaling $50 billion in federal funds.
The three areas Florida will focus its RHTP funding on are:
1. Improving access to care
2. Strengthening the medical workforce
3. Promoting healthcare innovation
AHCA plans to seek appropriations from Congress to spend the funds awarded. As that process evolves and AHCA begins implementing the awarded funds, FHA will continue to advocate for Florida’s rural hospitals to ensure that the funds invested have the greatest benefit for Florida’s rural communities.
