North Carolina Awarded More Than $216 Million in Rural Health Transformation Program Funding

The U.S. Centers for Medicare & Medicaid Services (CMS) awarded North Carolina a total of $216,824,573.30 dollars in continued Rural Health Transformation Program (NCRHTP) funding. This amount includes the initial $100 million CMS awarded all states last month and brings the total amount funded for North Carolina to more than $429 million since April 2026.  

“Every North Carolinian should have access to affordable, high-quality health care close to where they live,” said Governor Josh Stein. “We will continue to make the most of every dollar we receive through the Rural Health Transformation Program to strengthen health care in communities across the state.” 

NCRHTP aims to improve health in rural communities, help people get better care, and maintain rural health services. With the first round of funding, North Carolina is investing in proven programs while building the local and regional partnerships needed for lasting change. These investments will strengthen the rural health care workforce, improve technology, and help communities connect to the care and support they need.   

NCDHHS will host a public webinar on Dec. 10 to discuss progress, priorities, and what’s ahead. NC Health and Human Services Secretary Dev Sangvai will share how NCRHTP fits into the department’s new strategic plan and its priority to transform rural health. Registration is required and available online.  

“Our ultimate goal is to make sure every person in North Carolina, no matter where they live, has the care and support they need to live a healthy life,” said NC Health and Human Services Secretary Dev Sangvai. “We are grateful to our federal partners for NCRHTP’s Year 2 funding allocation as we continue on our mission to grow our health care workforce, improve technology, and build a stronger system.” 

The federal government created the Rural Health Transformation Program to help states improve health care in rural communities. States can use the funding to improve technology, strengthen the health care workforce, and develop new ways to provide care. In the first year, North Carolina was awarded more than $213 million. The federal program will provide funding for five years, with future funding based in part on state progress and federal funding decisions. 

North Carolina is maximizing the funding awarded by the Rural Health Transformation Program. However, the same federal law that created the program, H.R. 1, also reduces federal Medicaid funding to states. North Carolina is projected to lose tens of billions of dollars for health care over the next 10 years as a result. 

Stevens Amendment Disclosure: This press release is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $429,832,929.77 with 100% funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government.