State Policy · AL
Alabama Awards $144M in Rural Health Grants from CMS Transformation Program
Alabama Governor Kay Ivey announced 138 grants totaling over $144 million to healthcare providers and institutions across all 67 Alabama counties on August 24, 2026. The grants are the first disbursement under the Alabama Rural Health Transformation Program, funded by a $203.4 million CMS award. The program addresses rural healthcare access and infrastructure challenges across the state. Additional grant rounds are expected as the state distributes the remaining federal funds.
Why it mattersThis represents significant federal investment in Alabama's rural healthcare infrastructure that will affect Medicaid provider networks, access to care in underserved areas, and potentially managed care adequacy standards statewide.