SALEM, Ore. – A dozen community-driven projects across Oregon are set to receive millions in federal funding aimed at improving access to health care in rural areas, state officials announced this week.
The Oregon Health Authority (OHA) said the initiatives—ranging from workforce training to mental health services and chronic disease support—will be supported through the state’s new Rural Health Transformation Program. The first round of projects is expected to collectively receive up to $6.5 million in 2026 through what OHA is calling “Immediate Impact Awards.”
“Where you live shouldn’t determine whether you get quality health services,” said OHA Director Sejal Hathi. “These projects show what’s possible when rural communities lead, and OHA is committed to helping them turn homegrown solutions into lasting impact.”
OHA Health Policy & Analytics Director Clare Pierce-Wrobel said the early investments will help establish a strong foundation for the program’s long-term goals.
“These early projects will help Oregon’s Rural Health Transformation Program succeed in its first year, building a solid foundation upon which we can meaningfully improve rural healthcare access for years to come,” Pierce-Wrobel said.
Tribal and Future Funding Opportunities
In addition to the initial awards, Oregon’s nine federally recognized Tribes are expected to receive a combined $21.7 million through a Tribal Initiative focused on improving health outcomes in rural and remote Tribal communities. The effort was developed in partnership with Tribal leaders, reflecting the state’s government-to-government relationships.
OHA is also preparing to distribute significantly more funding in the coming months. Through May 26, eligible organizations can apply for “Catalyst Awards,” a competitive funding pool expected to total approximately $80 million annually for up to two years, pending federal approval. Officials anticipate funding up to 80 projects by early July.
Projects eligible for Catalyst Awards must be ready to launch within two months and address key priorities such as maternal and child health, behavioral health, aging in place, or chronic disease management.
Further funding is also planned for rural hospitals, clinics, and local public health agencies. OHA expects to allocate $50.4 million by late summer, including:
- $35 million for Oregon’s 35 rural hospitals
- $10 million for approximately 100 rural health clinics
- $5 million for the state’s 33 local public health authorities
OHA will work alongside the Oregon Office of Rural Health to coordinate regional efforts and provide technical support.
Federal Program Background
The Rural Health Transformation Program was created under U.S. House Resolution 1, a sweeping federal tax and spending package signed into law in July 2025. While the legislation reduced funding for several social programs, it also established a $50 billion nationwide investment in rural health care from 2026 through 2031, overseen by the Centers for Medicare & Medicaid Services.
Oregon is slated to receive $197.3 million in 2026 alone and could receive up to $1 billion over five years if funding levels remain consistent. Much of the funding became available only after federal approval was granted on March 19, 2026.
Community-Focused Projects
The first round of funded projects reflects a wide range of local needs. Planned efforts include expanding naloxone access, launching a mobile obstetrics simulation unit, increasing school-based mental health services, and developing new training programs for health care workers.
Other initiatives will focus on dementia care, nurse home visiting services, emergency medical training simulations, and education programs for medical assistants in rural high schools.
State officials say the program will roll out in two phases: an initial period through 2027 focused on launching ready-to-go projects and building partnerships, followed by a second phase from 2028 to 2030 that will fund larger, long-term regional health system improvements.
As Oregon begins distributing funds, leaders emphasize that the program’s success will depend on locally driven solutions tailored to the unique challenges facing rural communities across the state.
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