MONTGOMERY, Ala. – Alabama has officially received approval from the Centers for Medicare & Medicaid Services for the federal Rural Health Transformation Program, unlocking more than $203 million in first-year funding aimed at improving health care access and outcomes across the state, Gov. Kay Ivey announced on Monday, Dec. 29.
CMS issued Alabama its award number for the five-year program, formally approving the state’s comprehensive rural health plan and releasing $203,404,327 for the first year. The program will be administered by the Alabama Department of Economic and Community Affairs.
“We are very pleased Alabama will be awarded more than $203 million in the first year of the Rural Health Transformation Program,” Gov. Ivey said in a statement. She said state agencies began preparing for the program shortly after President Donald Trump signed the One Big Beautiful Bill Act into law in July, which created the initiative.
“Now that it has been approved, we will take the next steps to ensure our citizens and communities benefit for generations,” said Gov. Ivey. “Making America Healthy Again begins in rural America.”
The Rural Health Transformation Program was established under the legislation passed by Congress and signed by Trump. After its passage, Ivey directed state agencies to develop a statewide strategy so Alabama could move quickly once the program launched.
ADECA Director Kenneth Boswell said the agency appreciates the governor’s confidence in overseeing the initiative, calling it an important step for communities across the state.
Alabama submitted its plan to CMS for approval in November. In December, Ivey signed an executive order creating the Alabama Rural Health Transformation Advisory Group to guide implementation, policy development and oversight.
The plan includes 11 initiatives, ranging from rural workforce development and maternal health to mental health services, emergency medical systems, cancer care coordination, electronic health records and cybersecurity.
The strategy was developed with input from multiple state agencies, lawmakers, health care experts and stakeholders. More information will be posted at adeca.alabama.gov/alruralhealth as it becomes available.
