Tennessee launches massive rural health funding program worth over $200 million, designed to deliver long-term, sustainable improvements in state’s rural health infrastructure
Tennessee – The Tennessee Department of Health has released the first funding opportunity under the Rural Health Transformation Program (RHTP), marking the start of a series of competitive grant programs aimed at improving rural health systems across the state.
State officials said the initiative is designed to deliver long-term, sustainable improvements in Tennessee’s rural health infrastructure by expanding access to care, strengthening local providers, and supporting technology-driven health services.
“Tennessee is committed to strengthening rural health care and ensuring every resident has access to high-quality services, no matter where they live,” Tennessee Gov. Bill Lee said in a statement announcing the rollout. He said the program responds directly to rural community needs through targeted structural investments intended to improve health outcomes for families.
The first announced funding opportunity focuses on a Perinatal and Pediatric Behavioral Health Teleconsultation and Education Project. The program will use technology to expand access to behavioral health consultation and education services, with the goal of improving outcomes for women, infants, and children in rural areas.
Officials said additional grant opportunities will be released throughout 2026, with application windows scheduled across multiple programs, including chronic disease prevention, maternal and child health initiatives, health technology innovation, and rural healthcare resiliency efforts.
Upcoming opportunities include programs such as Healthy Active Rural Tennessee, Healthcare Resiliency Program initiatives, Memory Care Assessment Network, and County Health Council CARE Grants, with staggered application periods running from May through August 2026.
Tennessee Health Commissioner Dr. John Dunn said the grants represent a strategic investment in rural communities, emphasizing improved access to specialized care and stronger support for local providers.
The state received $206,888,882 from the U.S. Centers for Medicare & Medicaid Services as part of the Rural Health Transformation Program, a five-year federal initiative aimed at improving healthcare access and outcomes in rural areas nationwide.
Officials encouraged potential applicants to register for updates through the program’s online portal as Tennessee prepares to allocate its first-year funding ahead of the CMS deadline of Oct. 30, 2026.