Washington Seeks $1 B to Rescue Rural Health Care

Washington is officially seeking $1 billion in federal funding to strengthen rural health care under the new $50 billion Rural Health Transformation Program. The money—created in July’s “big, beautiful bill”—is meant to offset steep Medicaid cuts that could cost rural Washington more than $4 billion over the next decade. More than a million Washingtonians live in rural counties, where chronic disease rates are higher and many hospitals are already strained.

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The state’s five-year plan includes more than $300 million for hospital infrastructure, technology upgrades, and preserving maternal and obstetrics care. It also expands community-based services, boosts rural workforce training, enhances behavioral health and addiction treatment, and reserves 10% of any funding for tribes and Indian Health Care Providers.

Gov. Bob Ferguson says the bipartisan proposal was shaped by nearly 300 stakeholder comments and close collaboration with tribes and state agencies. He plans to meet with CMS Administrator Dr. Mehmet Oz once the federal shutdown delays clear.
Federal officials are expected to announce funding awards by year’s end, with the program providing $10 billion annually through 2030.