Oregon Applies for $1 Billion Federal Grant to Boost Rural Healthcare Infrastructure

The Oregon Health Authority (OHA) has applied for a federal grant program that could render $1 billion in new investment to strengthen healthcare in Oregon’s rural and frontier communities.

OHA Applies For $1 Billion Oregon Rural Healthcare Federal Grant

The federal Rural Health Transformation (RHT) Program was established under House Resolution 1, the federal government budget reconciliation bill signed into law in July.

Oregon is now seeking funding to expand access to care, grow the healthcare workforce, modernize technology and data systems, and invest directly in community-driven prevention and wellness initiatives.

To develop the RHT Plan, OHA engaged with stakeholders between August and October, including:

• Two statewide virtual public forums attended by hundreds of residents;
• Two online surveys that reached hundreds more providers, patients, and community organizations.
• Formal consultation and follow-up meetings with Oregon’s Nine Federally Recognized Tribes;
• Review of extensive written input from hospitals, clinics, and community partners across rural, frontier, and remote regions.

The agency noted that people in Oregon emphasized prevention, healthy communities, and workforce resilience as top priorities and called for investments in community-based care models, support for local recruitment and retention, and incentives to attract non-traditional and culturally responsive providers.

The application includes a dedicated Tribal initiative that provides direct funding for Tribal-led strategies to strengthen sovereignty, workforce development, and culturally grounded care.

Earlier this week, Governor Tina Kotek also sent a letter to Dr. Mehmet Oz. Administrator of the Centers for Medicare & Medicaid Services expressing her full support for Oregon’s proposed Rural Health Transformation (RHT) Plan.

If the application is successful, Oregon would roll out in two phases:

• Phase 1 (2026–2027): Immediate “catalyst” grants for shovel-ready projects that expand access, improve local infrastructure, and strengthen emergency and maternity care.
• Phase 2 (2028–2031): Larger, regional initiatives focused on long-term sustainability, shared infrastructure, and cross-sector collaboration.

The RHT Program is set to distribute $50 billion nationwide between 2026 and 2031, and federal law requires the U.S. government to make program award decisions by Dec. 31.