Texas is moving forward its Rural Health Transformation Program efforts through Rural Texas Strong, a strategy supported by approximately $281 million in Budget Period 1 funding.
The program is designed to strengthen rural healthcare through six initiatives that address some of the most significant challenges facing Texas’ rural communities.
What is Rural Texas Strong?
Rural Texas Strong is Texas’ statewide roadmap for improving rural healthcare through the Rural Health Transformation Program.
Texas has organized Rural Texas Strong around six initiatives:
-Make Rural Texans Healthy Again: supports local programs focused on diabetes, cardiovascular disease, obesity, and other chronic conditions through prevention, wellness, nutrition, transportation support, and remote monitoring programs.
-Rural Texas Patients in the Driver’s Seat: invests in patient portals, remote monitoring devices, and consumer health technology that helps patients engage more actively in their care.
-Lone Star Advanced AI and Telehealth: expands access to specialty care, behavioral health services, and chronic disease management through telehealth and AI-enabled tools.
-The Next Generation of the Small Town Doctor and Team: addresses workforce recruitment, training, and retention through scholarships, residency programs, relocation incentives, and local workforce development efforts.
-Unified Care Infrastructure and Rural Cyber Protection: strengthens cybersecurity and healthcare technology infrastructure for rural providers.
-Infrastructure and Capital Investments for Rural Texas: funds equipment upgrades, emergency preparedness resources, and facility improvements that support patient care.
The plan reflects a strong commitment to helping rural organizations modernize the tools and infrastructure needed to serve their communities.
Texas' Current Rural Health Transformation Program Updates
Since Rural Texas Strong was first announced, Texas has begun distributing funding.
Rather than spreading investments evenly across all six initiatives during Budget Period 1, Texas is focusing its initial funding on three priority areas:
- Initiative 1: Make Rural Texans Healthy Again (approximately $116.25 million)
- Initiative 4: The Next Generation of the Small Town Doctor and Team (approximately $98.89 million)
- Initiative 6: Infrastructure and Capital Investments for Rural Texas (approximately $56.26 million)
Within Initiative 1, Texas is using two funding approaches: dedicated funding for rural hospital districts with publicly owned hospitals, and competitive awards for public and private rural hospitals to expand community-based prevention and wellness programs.
The remaining $9.9 million supports program administration, external monitoring, and performance oversight, reflecting the state’s emphasis on accountability alongside implementation. Initiatives 2, 3, and 5 are expected to receive funding in later budget periods.
In addition, HHSC released a second round of funding for The Next Generation of the Small Town Doctor and Team initiative on July 15, 2026, with applications due August 26, 2026.
Our Perspective
Texas received one of the largest Budget Period 1 RHTP awards in the country, making Rural Texas Strong one of the most closely watched Rural Health Transformation Program initiatives. With approximately $281 million in funding, the state has a major opportunity to demonstrate how large-scale rural health transformation can produce measurable outcomes.
The plan also stands out for its emphasis on consumer health technology and AI. From patient portals and remote monitoring to tools that support documentation, coding, and care coordination, Texas is using technology to expand access and strengthen rural healthcare.
Healthcare leaders across the country need to be watching closely. The lessons learned through Rural Texas Strong will help shape how other states implement their Rural Health Transformation Programs, measure outcomes, and sustain improvements long after the funding period ends.
