Rural health providers in Texas have until Feb. 5, 2026, at 11:59 p.m. to apply for Rural Health Financial Stabilization Grant funds, a $44 million initiative available through the Texas Health and Human Services Commission to support struggling hospitals in rural counties.
The program is focused on rural hospitals facing sustained financial pressure, including declining patient volumes and rising labor and operating costs. According to grant guidelines, HHSC has pre-identified 79 hospitals considered at higher financial risk, while emphasizing that other rural hospitals meeting eligibility and financial criteria may also apply.
Grant documents outline a three-payment structure, with funding potentially distributed over multiple installments rather than as a single lump sum. HHSC notes that the sample allocations published alongside the priority list are illustrative only and do not represent final award decisions.
The $44 million program is funded through the state’s 2026–27 biennial budget and administered by the Texas Health and Human Services Commission. While experts in the health industry say changes in Medicaid reimbursements bring financial strain to rural hospitals, this state-sponsored funding is not part of the $50 billion federal Centers for Medicare & Medicaid Services Rural Health Transformation program.
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