Maryland receives $168M to boost rural healthcare

Ben Mause, The Baltimore Sun on Dec 29, 2025

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WASHINGTON — Maryland will receive $168 million to bolster its rural healthcare services, the Centers for Medicare and Medicaid Services announced on Monday.

The money will be allocated from CMS’ Rural Health Transformation Program. The program is a five-year, $50 billion health care fund that was included in the One Big, Beautiful Bill to offset cuts to the bill made to Medicaid. Ten billion in funds will be distributed each year from 2026 to 2030.

“I commend the Trump Administration for its leadership in delivering billions of dollars to strengthen rural healthcare nationwide as part of the One Big Beautiful Bill,” Rep. Andy Harris, an Eastern Shore Republican, told The Baltimore Sun in a statement. “As a physician and representative of a rural district — and the only member of Maryland’s congressional delegation to support the passage of these rural healthcare funds, I’m ready to work with the Trump Administration to address the needs of rural Marylanders with these dollars.”

Half of the funding will be distributed equally to states with approved Rural Health Transformation Plans. The remainder will be distributed based on each state’s healthcare circumstances.

“More than 60 million Americans living in rural areas have the right to equal access to quality care,” Health and Human Services Secretary Robert F. Kennedy, Jr. said in the announcement. “This historic investment puts local hospitals, clinics, and health workers in control of their communities’ healthcare. Thanks to President Trump’s leadership, rural Americans will now have affordable healthcare close to home, free from bureaucratic obstacles.”

Healthcare costs have been a growing concern for Maryland residents, and a recurring theme during the first year of Trump’s second term.

Maryland was on the low end of the CMS’ recipients, with only six states receiving fewer funds. Most of those were also smaller, northeastern states: Connecticut, Delaware, Massachusetts, New Jersey and Rhode Island.

A spokesperson for the Maryland Department of Health, which oversees the state’s Rural Health Transformation Program, said the department was pleased with the award. The spokesperson added that MDH remained in discussions with CMS about approved programs and adjusted budget details.

“This funding will provide critical support to strengthen the local healthcare workforce, bolster current programs and implement evidence-based strategies that will have lasting impacts on the health and wellbeing of our rural communities,” the spokesperson said.

Harris blamed Gov. Wes Moore for the state missing out on additional funding.

“Unfortunately, the Moore administration failed to adequately prioritize Maryland’s application by not applying for a SNAP nutritious food waiver, causing our rural communities to miss out on additional millions of dollars that would have been flowing into our state,” Harris said.

When asked for comment on Harris’ allegations, Moore’s office referred The Sun to the department of health. MDH did not respond to Harris’ claims.

In November, the Maryland Department of Health submitted its five-year proposal to the CMS. The plan was composed of three initiatives and totaled just under $1 billion in requested funds through 2030. Funding would be distributed among short-term projects and long-term healthcare priorities. The deadline for the plan’s approval is Dec. 31.

Earlier this year, Republicans sought to curb government spending while extending current tax rates and boosting funds for defense and border security. To do so, they targeted one of the federal government’s most expensive social programs: Medicaid. By pushing more responsibility for its cost to the states, the GOP was able to slash roughly $1 trillion in federal spending on the program. Every congressional Democrat opposed the bill.

Because the changes threatened to damage rural healthcare facilities, Republicans included a $50 billion health fund in the bill, to be doled out to each state to address its rural health care concerns.

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