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Rural Health Transformation Program (RHTP)

MI RHTP logo image

Rural Health Transformation Program (RHTP)

The Rural Health Transformation (RHT) Program is part of H.R. 1, known as the One Big Beautiful Bill Act passed by Congress and signed into law July 4, 2025. The $50 billion grant program runs from Fiscal Year (FY) 2026 through FY 2030, with $10 billion allocated per year across 50 states. The goal is to increase access to rural health providers while improving outcomes for individuals living in rural communities. 

The Michigan Department of Health and Human Services (MDHHS) was awarded $173,128,201 for Budget Period 1 (BP1; December 31, 2025-October 30, 2026) by the Centers for Medicare & Medicaid Services (CMS) under the RHT Program. Read the press release with more information about the award.

 

RHTP Updates

Implementation Strategy

To help inform Michigan’s strategy for prioritizing the funding from the RHT Program, MDHHS engaged with rural health providers, community partners, Medicaid beneficiaries and rural community residents.

The department sought to better understand how this one-time grant could help increase and improve sustainability for rural providers, and how rural providers can continue to thrive, expand, and serve their communities, especially with other predicted federal funding cuts being implemented.

MDHHS has integrated feedback to inform the following framework:

Learn More About the RHT Program

  • For determining rural and nonrural counties, MDHHS uses the Federal Office of Rural Health Policy (FORHP) county and census tract classifications. This includes all counties identified by FORHP as fully rural, as well as those designated as partially rural, regardless of the number of rural census tracts, which are county subdivisions outside densely populated urban areas. Consistent with the RHTP description outlined in the project narrative, funding decisions will follow a needs based prioritization framework that focuses on counties experiencing high rates of chronic disease, limited access to hospitals and primary care, including OB/GYN and behavioral health, high Medicaid dependence, socioeconomic vulnerability and elevated levels of child poverty or aging populations.

    MDHHS will further prioritize funding based on the percentage of the population living in U.S. Census defined rural areas. This approach recognizes that rural residents in more populous counties may face additional access challenges due to geographic dispersion and service capacity limitations, which refer to the maximum threshold an operation can handle without compromising quality. Using this method, funding will be directed first to high need rural areas with larger rural populations. Partially rural counties will be prioritized according to the share of residents living in rural census tracts, ensuring resources are allocated where they can have the greatest impact.

    RHTP Rural Counties Map

    This table shows the percentage of rural population, based on the 2020 census, within partially rural counties in Michigan.

    County

    Total Population

    Rural Population

    Percentage Rural Population

    Bay County

    103,856

    30,055

    28.94%

    Berrien County

    154,316

    46,444

    30.10%

    Calhoun County

    134,310

    43,439

    32.34%

    Cass County

    51,589

    38,229

    74.10%

    Clinton County

    79,128

    40,608

    51.32%

    Eaton County

    109,175

    41,470

    37.98%

    Genessee County

    406,211

    73,927

    18.20%

    Grand Traverse County

    95,238

    41,117

    43.17%

    Ingham County

    284,900

    41,503

    14.57%

    Lapeer County

    88,619

    76,168

    85.95%

    Leelanau County

    22,301

    19,532

    87.58%

    Livingston County

    193,866

    76,602

    39.51%

    Midland County

    83,494

    36,083

    43.22%

    Oakland County

    1,274,395

    70,630

    5.54%

    Saginaw County

    190,124

    62,009

    32.62%

    Washtenaw County

    372,258

    64,009

    17.19%

    Wayne County

    1,793,561

    16,085

    0.90%

     

  • The vision of Michigan’s RHT Program is:

    Create a resilient and innovative rural health system where every resident has access to high-quality care close to home.

    Michigan’s RHT Program seeks to further the following strategic goals:

    1. Transforming Rural Health through Partnerships: Build regional partnerships among providers, public health, and community organizations to coordinate services across rural regions.
    2. Workforce for Wellness: Support rural workforce pipelines, provider recruitment and retention, and community-based roles.
    3. Interoperability in Action: Advance Health Information Exchange (HIE) and Community Information Exchange (CIE) participation, digital infrastructure, and technology-enabled care coordination across rural providers.
    4. Care Closer to Home Blueprint: Expand hub-and-spoke models, home- and community-based services, transportation, and behavioral health access.
    5. Tribal Government Partnership: Support Tribal-led solutions across initiatives to improve outcomes and address disparities in rural and Tribal communities.
  • High-Level RHTP Timeline for Budget Period (BP) 1 and BP2

    The RHT Program is a multi-year initiative that will be implemented in phases, corresponding to the grant’s budget periods. The high-level timeline below outlines key milestones for Budget Period 1 (BP1), and will be updated as the program progresses:

    • October 30, 2026: End of BP2.
    • October 31, 2026: BP2 begins.
    • October 30, 2026: End of BP1.
    • December 31, 2025: BP1begins.
    • December 29, 2025: CMS awards released for all 50 states.
    • November 3, 2025: Michigan’s proposal is submitted.
    • September 15, 2025: Notice of Funding Opportunity is released by CMS.
  • Current Grant Funding Opportunities (GFOs)

    Michigan released its first series of Grant Funding Opportunities in July 2026. Please see the RHT Program Updates page for links to announcements with more information.

    To see RHTP Grant Funding Opportunities (GFOs), please:  

    1. Go to the EGrAMS home page: https://egrams-mi.com/mdhhs/user/home.aspx  
    2. Select “Search Grants.” 
    3. Make sure the “Open” and “Competitive” are selected. 
    4. Click “Find.” 

    If you have trouble finding the GFOs or navigating EGrAMS, please send questions to the EGrAMS Help Desk: MDHHS-EGrAMS-Help@michigan.gov

    Any questions related to the content of the GFOs must be sent to MDHHS-RHTP@michigan.gov. Answers will be posted on the date within the GFO timeline, also on the GFO document. 

    Upcoming Funding Opportunities

    To receive updates when additional RHTP GFOs are released, please sign up for the listserv. Subscribers will be the first to know when the funding announcement, application materials, and technical assistance resources become available.

    Letters of Intent (LOIs)

    To accelerate implementation of the RHTP, MDHHS issued Letters of Intent (LOIs) in early 2026 to organizations with demonstrated experience advancing innovative, community-centered solutions in rural Michigan. This approach enabled MDHHS to quickly invest in trusted partners that were already leading transformative work, allowing program activities to begin while longer-term implementation strategies and funding mechanisms continued to be developed.

    Eligibility Requirements

    For purposes of identifying eligible applicants, MDHHS utilizes the Federal Office of Rural Health Policy (FORHP) county and census tract classifications to determine rural and non-rural counties. MDHHS included all counties designated by FORHP as fully rural and all counties designated as partially rural, regardless of the number of FORHP-identified rural census tracts within a county.

    Eligible applicants include 501c3 nonprofits, for-profit organizations, private and public entities, local municipalities, local transit agencies, local health departments, health systems, health plans, community-based coalitions, community foundations, and/or other similar organizations.

    Funding Priorities

    Funding under Michigan's RHTP is guided by the program's strategic goals to strengthen rural healthcare systems and improve the health and well-being of rural communities. Priority is given to initiatives that foster regional partnerships, expand and support the rural healthcare workforce, advance interoperable health and community information exchange, increase access to care through innovative service delivery models, and support Tribal-led solutions that address the unique needs of rural and Tribal populations.

    In addition to aligning with these strategic goals, funding decisions are informed by a data-driven assessment of community need. MDHHS prioritizes investments in communities facing the greatest health and healthcare access challenges using a combination of demographic, health, healthcare access, and socioeconomic indicators.

    Award Announcements

    Michigan’s RHTP supports innovative, community-driven solutions to improve health outcomes across rural communities. A key component of this work is funding subrecipients, including local organizations, providers, and partners, who are implementing projects aligned with RHTP’s strategic priorities.

    Please visit the RHTP Subrecipients page to learn more about the organizations that have been awarded RHTP funding and the work they are leading across the state. By showcasing these subrecipients, the page aims to promote transparency in how RHTP funds are distributed and support collaboration among partners.

Sign up to Receive Updates

To receive updates on the Rural Health Transformation Program, including future Grant Funding Opportunity notices, please subscribe to the RHT listserv.

RHT Listserv Subscribe

Contact

Please email MDHHS-RHTP@michigan.gov with any questions.

This publication 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 $173,128,201.02, with 100% funding provided 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.