AHA Urges CMS to Lift Funding Caps in $50 Billion Rural Health Transformation Program
The American Hospital Association submitted comments to CMS on August 5, 2026, requesting changes to the Rural Health Transformation Program, which will distribute $50 billion to rural providers from FY 2026 through FY 2030. AHA urged CMS to eliminate a 15% cap on provider payments and a 20% cap on infrastructure and capital improvement funding for program years two through five. The association also requested that CMS work with Congress to allow states to revise initial applications, extend spending timelines for obligated funds, publicly post state-reported funding data, remove administrative barriers to hospital fund access, and ensure RHTP funds are separately reported on Medicare cost reports.
The proposed funding caps could limit rural hospitals' ability to access billions in federal support for operations and infrastructure at a time when rural provider financial stability directly affects Medicaid beneficiary access and state Medicaid program network adequacy requirements.
Finance
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