CMS Invests $144M to Boost Rural Health Access in Alabama

A $144 million investment from CMS supporting 138 grants will expand access to rural mental health, substance abuse, emergency, and maternal care in Alabama.¹

The announcement, published by CMS, stated that the investment will be delivered through the Rural Health Transformation Program (RHTP). It will also fund initiatives focused on modernizing health care technology and infrastructure and strengthening the rural health care workforce. The investment targets several disparate issues people in Alabama face: 42% of the state's population lives in rural areas, 7% of counties in rural Alabama have no hospital, and 28% of women in the state have no birthing hospital within 30 minutes of their residence.²

"Alabama is serious about creating systematic changes through the ARHTP [Alabama RHTP] to ensure every citizen has access to quality care," Kay Ivey, Alabama governor, said in the CMS press release. "This program is enabling institutions covering every part of the state to improve healthcare for Alabamians through projects that are both innovative and sustainable."

Alabama's Rural Access Gap Drives the Case for Federal Investment

Rural access is a significant hurdle to health care in Alabama, which has the fifth-lowest overall ranking for rural health when compared with 46 other states.³ In regard to mental health and dental care access, it's ranked 45th and 44th, respectively, as its mental health care health professional shortage (HPSA) designation meets only 28.4% of the state's population's needs.^3,4

This investment aims to expand mental and behavioral health services through ARHTP, specifically to increase mental health and substance use disorder care access through school-based and telehealth services, targeting underserved rural communities.¹ CMS noted the funding will also help rural providers modernize clinical operations, integrate physical and behavioral health services, and increase access to community-based care, in addition to supporting mobile crisis response and stronger community behavioral health systems more broadly.

"Investing in rural healthcare is critical to making sure every Alabamian, regardless of their zip code, has access to high-quality healthcare," Senator Katie Boyd Britt (R, Alabama) said in the CMS press release.

Workforce Development and Technology Upgrades Round Out Alabama's RHTP Plan

The investment also aims to strengthen Alabama's health care workforce—underscored by its HPSA designation—by modernizing electronic health records and information technology to improve interoperability, thus building better shared technology and referral pathways to optimize coordinated care. The technology initiative will also extend beyond the clinic to develop telehealth, mobile health services, and remote monitoring to expand primary, specialty, maternity, and preventive care services.

The investment will also fund resources—such as rural residency and training programs, scholarships, and recruitment and retention efforts—that would bolster health care worker pipelines. CMS's announcement outlines 5 categories of key investments: modernizing technology and cybersecurity; expanding access to care closer to home; building and retaining the rural health care workforce; bolstering rural health care practices and community-based care; and expanding mental and behavioral health services.

"By strengthening our rural healthcare workforce, expanding mental health and emergency services, and giving local providers the tools they need to modernize, we are investing in the people and communities that make Alabama strong," Representative Barry Moore (R), representing Alabama's 1st Congressional District, said in the CMS press release.

Several other members of Alabama's congressional delegation also weighed in on the announcement. Senator Tommy Tuberville (R) called the investment a difference-maker for "thousands of Alabamians," while Representative Robert Aderholt (R), who represents one of the more rural congressional districts in the country, said the funding reflects "a deliberate commitment" to ensuring rural hospitals have the resources they need to survive.

Representative Dale Strong (R) noted that the state has now received more than $203 million in total federal funding under the program, which Ivey and state leaders are directing toward locally identified priorities.

The investment was made possible through the Working Families Tax Cuts Act, which delivered $50 billion to reshape health care delivery in the US, according to CMS. The funding is to be distributed to states over 5 fiscal years beginning in fiscal year 2026.⁵

"We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home," HHS Secretary Robert F. Kennedy Jr said in the CMS press release. "We are giving states the flexibility to build solutions around the people they serve, while demanding accountability for results."

References

1. Trump administration announces $144 million to improve mental health, substance abuse, emergency and maternal care and expand the healthcare workforce in Alabama. News release. CMS. August 24, 2026. Accessed August 25, 2026. https://www.cms.gov/newsroom/press-releases/trump-administration-announces-144-million-improve-mental-health-substance-abuse-emergency-maternal

2. Alabama Department of Public Health. At a glance. Alabama Department of Public Health. March 25, 2026. Accessed August 25, 2026. https://www.alabamapublichealth.gov/ruralhealth/at-a-glance.html

3. F. Marie Hall Institute for Rural & Community Health. Rural Health Quarterly. Winter 2025-2026. Published January 2026. Accessed August 25, 2026. https://www.ruralhealthquarterly.com/home/wp-content/uploads/2026/01/RHQ-Winter-2025-2026.pdf

4. KFF. Mental health care health professional shortage areas (HPSAs). KFF. December 31, 2025. Accessed August 25, 2026. https://www.kff.org/other-health/state-indicator/mental-health-care-health-professional-shortage-areas-hpsas

5. CMS announces $50 billion in awards to strengthen rural health in all 50 states. CMS. News release. December 29, 2025. Accessed August 25, 2026. https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states