MONTGOMERY, Ala. (WDNews) — Kay Ivey announced Monday that Alabama has officially received its award number from the Centers for Medicare & Medicaid Services for the federal Rural Health Transformation Program.
The approval formally clears Alabama’s plan and unlocks $203,404,327 in first-year funding. The five-year program is designed to improve health care access, quality and outcomes, particularly in rural communities.
The program will be administered by the Alabama Department of Economic and Community Affairs.
Ivey said the state began preparing immediately after the One Big Beautiful Bill Act was signed into law in July by Donald Trump, allowing Alabama to move quickly once federal approval was granted.
She said the funding will help ensure long-term benefits for communities across the state, noting that improving health care in rural areas is a key priority.
The Rural Health Transformation Program was created under the One Big Beautiful Bill Act. Following its passage, Ivey directed state agencies to develop a comprehensive rural health strategy ahead of the program’s launch.
ADECA Director Kenneth Boswell said the agency appreciates the governor’s trust and emphasized the importance of the program to Alabama residents.
In November, Alabama’s plan was submitted to CMS for approval. In December, Ivey signed an executive order creating the Alabama Rural Health Transformation Advisory Group to help guide implementation, policy development and oversight.
The approved plan includes 11 initiatives focused on areas such as rural health care delivery, maternal and fetal health, workforce development, emergency medical services, mental health, community medicine, health technology, cybersecurity and cancer care coordination.
State officials said the plan was developed with input from multiple agencies, including the Governor’s Office, ADECA, the Alabama Department of Finance, the Alabama Medicaid Agency and the Alabama State Health Planning and Development Agency, along with health care experts, stakeholders and lawmakers across the state.
