The New York State Department of Health has submitted an application to the Centers for Medicare & Medicaid Services (CMS) for up to $1 billion in funding under the federal Rural Health Transformation Program. The announcement was made on November 6, 2025, with a decision from CMS expected by December 31, 2025.
Alongside the application, the Department has launched a new website that outlines key initiatives proposed in its submission. These efforts are part of the state’s ongoing focus on improving health outcomes and access for residents in rural areas.
State Health Commissioner Dr. James McDonald stated, “The Department, under the leadership of Governor Kathy Hochul, remains committed to working with our federal, state and local partners to ensure we are bringing high quality and affordable health care services to rural communities. This effort reflects our ongoing mission of promoting and protecting the health and well-being of all New Yorkers, building on a foundation of health equity.”
New York has over 47,000 square miles classified as rural land area. Approximately 2.1 million people—more than ten percent of the state’s population—live in these regions. Rural communities face several challenges related to healthcare access and outcomes such as coordination of care, primary care shortages, behavioral health service gaps, and higher rates of chronic illness.
Office of Mental Health Commissioner Dr. Ann Sullivan said, “Expanding access to services in underserved communities is an important part of our effort to strengthen mental health care statewide. The Rural Health Transformation Grant will help New York State explore new partnerships, build our health care workforce, and pursue innovative opportunities to expand care in these areas. Under Governor Kathy Hochul’s leadership, we are helping New Yorkers in our rural areas access the critical care they can rely on to keep themselves and their families healthy.”
The Department emphasized its commitment to innovation and strategic investment as ways to improve healthcare across New York State. Its application proposes a set of connected initiatives aimed at expanding access by working with local providers, forming regional collaborations, and enhancing infrastructure statewide.
