Michigan receiving over $173 million to improve health services in rural areas
The state of Michigan was awarded over $173 million by the federal government to support and improve health services in rural communities.
The funding is part of a $50 billion grant distributed across all 50 states under the federal Rural Health Transformation Program. According to a news release, the grant will be available from fiscal year 2026 through fiscal year 2030.
"Today's investment will support access to health care for rural communities across Michigan as we deal with funding shortfalls caused by federal Medicaid cuts," said Gov. Gretchen Whitmer in a statement. "This $173 million grant will help us connect more Michiganders to the care they need and provide essential wraparound supports. In Michigan, we have successfully worked together to protect quality, affordable health care, and we will continue finding ways to secure more federal funds, expand coverage and lower costs."
According to the Michigan Department of Health and Human Services, the funding sent to the state will be used to support regional partnerships among rural hospitals and clinics, recruit and retain rural health professionals, utilize technology tools, and establish digital referral networks connecting residents to wellness resources.
"Michigan continues to support a resilient and innovative rural health system where every resident has access to high-quality care close to home," said MDHHS director Elizabeth Hertel. "Our approved proposal for these federal funds focuses on enhancing the long-term sustainability of rural providers while supporting their growth and continued service to their communities."
The federal government rolled out the Rural Health Transformation Program earlier this year as part of the One Big Beautiful Bill Act. States had until Nov. 5 to apply for the funding. The Centers for Medicare and Medicaid Services released the application in September in the midst of Medicaid cuts.
Half of the $50 billion would be distributed equally among all the states, and the other half would be allocated by CMS based on rural population and other factors.