The U.S. Centers for Medicare & Medicaid Services awarded North Carolina more than $216 million in continued funding for the Rural Health Transformation Program, the governor’s office announced Thursday.
The state will use the money to strengthen the rural health care workforce, improve technology, and maintain rural health services, the governor’s office said. However, H.R. 1, the legislation establishing the initiative, lowers federal Medicaid allocations for states. Because of this, North Carolina expects a loss of tens of billions in health funding during the upcoming decade.
The $216.8 million award for the program’s second year includes an initial $100 million that CMS awarded last month. Since April 2026, North Carolina has received more than $429 million from the program, including more than $213 million in its first year. The federal program will provide funding for five years, with future amounts based partly on state progress and federal funding decisions.
The North Carolina Department of Health and Human Services will host a public webinar on Dec. 10 to discuss the program’s progress and priorities. State Health and Human Services Secretary Dev Sangvai will explain how the funding fits into the department’s strategic plan to transform rural health.