State of Maine to Apply for Rural Health Transformation Program Funding

State invites feedback to shape application for federal funding to bolster rural health

AUGUSTA-- The State of Maine announced today that it is launching a robust public engagement process to apply for funding through the Rural Health Transformation Program (RHTP), a new Federal initiative to bolster rural health care providers.

The RHTP was created within the Federal budget reconciliation bill, H.R. 1, signed into law on July 4, 2025. The law makes significant and permanent cuts to health care funding, which are expected to increase the number of uninsured individuals and costs to provide health care to them over the next several years, particularly in rural areas. The RHTP would provide one-time funding to support rural health care, though it is likely to be only a fraction of the $5 billion that Maine is estimated to lose under the law.

The State is committed to seeking the maximum amount of funding possible through the RHTP to invest in rural health care providers, people, and communities. Over the coming weeks, Maine people are invited to share perspectives and ideas during the public engagement process to inform the State's RHTP application, which is due November 5, 2025.

"Like many people across our state, rural Maine is my home. It is where I was born and largely raised, and it is where my heart is. It is important to me that folks who live in rural Maine have economic opportunity and have a strong health care system to support their health and wellbeing," said Governor Janet Mills. "But today health care in rural Maine -- and across rural America more broadly -- faces real and serious challenges, and I am deeply worried about it. Maine will fight for every possible dollar of funding through the Rural Health Transformation Program, beginning with a robust public process to engage Maine people on innovative ways we can improve health care in our rural areas and give our application the strongest possible opportunity to make an impact in Maine."

On behalf of the State of Maine, the Department of Health and Human Services (DHHS) will lead the application process in collaboration with the Governor's Office of Policy Innovation and the Future and other state agencies. Maine is launching a robust public engagement as part of that process.

Details about the public engagement process are available on a new webpage -- which has information for health providers, partners, and the public about submitting their input. Beginning next week, the State also will host public information webinars, followed by community listening sessions to be scheduled for October.

"The State of Maine is acting quickly to help stabilize and advance rural health care through innovation," said Maine DHHS Commissioner Sara Gagné-Holmes. "We encourage Mainers statewide to share their perspectives on how Maine can hit the ground running with a timely and comprehensive approach."

About the Rural Health Transformation Program

The RHTP is providing $50 billion that will be distributed by the U.S. Centers for Medicare & Medicaid Services (CMS) to states with approved applications using two allocations of the funding:

• The first $25 billion is expected to be allocated evenly among all 50 states and equaling about $100 million each year for the next five years for Maine.
• The second $25 billion will be distributed to a subset of states at CMS' discretion and according to a variety of rural factors over the next five years.

CMS released RHTP guidance and application instructions to states on Monday. States now have under two months, until Nov. 5, 2025, to develop and submit their applications.

CMS expects to make funding decisions by Dec. 31, 2025 and issue awards to states by January 2026.

Key upcoming dates for Maine's public engagement process include:

• Sept. 23 (12-1pm): Public information webinar (Register)
• Sept. 24, (1-2pm): Public information webinar (Register)
• Oct. 1: Public comment closes on DHHS website

More information about how to register for the webinars is available at https://www.maine.gov/dhhs/ruralhealth. The public can also sign up for email updates about the upcoming community listening sessions.