Indiana will receive $206.9 million in federal funding in fiscal year 2026 to support a new five-year rural health initiative the Braun administration says will expand access to care, strengthen the workforce and modernize health systems in rural communities.

The award comes through the Rural Health Transformation (RHT) Program, a $50 billion federal effort administered by the Centers for Medicare & Medicaid Services (CMS). CMS announced Monday that all 50 states will receive first-year awards in 2026, with funding levels ranging from $147 million to $281 million. CMS

Indiana’s FY26 award amount is $206,927,897, according to CMS’ state-by-state funding list. CMS

Gov. Mike Braun said the state will use the funding to implement GROW (Growing Rural Opportunities for Well-being): Cultivating Rural Health, a plan aimed at improving rural health outcomes through “system innovation and collaboration.” Braun directed the Indiana Family and Social Services Administration (FSSA) and the Indiana Department of Health (IDOH) to lead implementation.

“Indiana’s rural communities are the backbone of our state, and this investment will help ensure that every Hoosier, regardless of where they live, has access to high-quality, sustainable healthcare,” Braun said in a statement announcing the award.

Federal officials said the RHT program is designed to help states expand access to care and improve quality in rural areas while supporting new care models, technology upgrades and workforce strategies. CMS noted that the awards are tied to state plans and will be tracked through implementation, with ongoing federal technical assistance. CMS

According to Braun’s office, Indiana requested about $200 million annually in its application and received slightly more in the first-year award. The governor’s plan outlines five major goals:

  • Make Rural Indiana Healthy Again by expanding preventive care and targeting chronic disease, behavioral health and prenatal care;

  • Provide Sustainable Access by supporting rural clinicians and facilities and improving coordination with regional systems;

  • Improve the Rural Health Workforce through recruitment and retention strategies and expanded use of community health workers and behavioral health specialists;

  • Implement New Ways to Provide Care through new service models and payment approaches; and

  • Leverage Technology to expand digital health tools, remote care and data-sharing systems.

The state’s broader GROW framework also includes 12 initiatives, with most designed for statewide implementation and a significant portion of funding expected to flow directly to rural communities through regional grants intended to support locally developed solutions, Braun’s office said.

Indiana’s approach has been in development for months, including a fall application to the federal program outlining multi-year strategies for rural workforce development, infrastructure and care delivery changes. Indiana Capital Chronicle+1

CMS said the RHT Program will distribute funding annually through fiscal year 2030.