TOPEKA — Governor Laura Kelly announced Thursday that Kansas will apply for funding through the $50 billion federal Rural Health Transformation Program (RHTP), aimed at strengthening access to care in rural communities amid looming federal Medicaid cuts.
The program, created under H.R. 1, comes as many Kansas hospitals—already facing financial strain—confront additional challenges from reductions in Medicaid funding.
“We are committed to ensuring that rural Kansans have access to high-quality, affordable health care near their homes,” Kelly said. “Though these funds will not fully offset federal cuts, they will allow the state to make fundamental changes to protect access to care in communities where hospitals are at risk of closure.”
Of the $50 billion available nationwide, $25 billion will be divided evenly among states with approved applications. The remaining half will be distributed based on criteria outlined by the Centers for Medicare and Medicaid Services (CMS). Kansas’ application is due by November 5, with funding announcements expected by December 31. Grants will be distributed over a five-year period.
To oversee the application process, Kelly is forming the Kansas Rural Health Innovation Alliance, a stakeholder group that will guide development of the state’s proposal and implementation of its initiatives. The University of Kansas Health System Care Collaborative, a rural health provider network, will partner with the state to coordinate efforts and host an informational webinar on September 29 at 9 a.m.
Kansas Department of Health and Environment Secretary Janet Stanek praised the collaboration. “This will help ensure a strategic approach to this five-year funding opportunity,” she said.
Kansas Department for Children and Families Secretary Laura Howard added that engaging the Alliance will “ensure Kansas’ proposal meets the needs of rural Kansans and providers.”
Kelly emphasized that while the funding cannot undo federal reductions, it represents an opportunity to reimagine how care is delivered in underserved areas. “This is about building a stronger, more resilient rural health care system for the future,” she said.