Vermont Receives $190M Rural Health Transformation Funds
Year Two federal award will expand rural primary care, mental health services and health care workforce across the state.
Updated on Nov. 9, 2026 in Healthcare
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Vermont received $189,996,036.02 in Year Two Rural Health Transformation funding from the Centers for Medicare & Medicaid Services. The award follows a Year One allocation of over $195 million distributed across approximately 250 rural health initiatives.
Why it matters
The federal program gives Vermont resources and flexibility to set its own rural health priorities and move quickly from planning to action. The funding is intended to address access and workforce gaps in rural communities across the state.
Vermont's total Rural Health Transformation award is $195,053,740.44, funded 100 percent by CMS/HHS within a $50 billion federal initiative. Year Two's $189,996,036.02 is distributed to fund mental health urgent care, primary care in rural communities and technology efficiencies, but how the remaining allocations will be divided is not yet specified.
The players
Centers for Medicare & Medicaid Services
The federal agency that administers Medicare and Medicaid and established the $50 billion Rural Health Transformation initiative to help states strengthen rural health care systems.
Governor Phil Scott
The Republican governor of Vermont who will hold a press conference on the state's rural health funding at Gifford Medical Center.
Vermont Agency of Human Services
The state agency responsible for coordinating Vermont's Rural Health Transformation program and communicating funding opportunities and implementation updates.
The details
The Agency of Human Services will work with state agencies, health care organizations and community partners to advance approved initiatives. Year One investments supported expanded primary care access, care coordination technology, shared administrative services and workforce development, while Year Two funds are being used to scale mental health urgent care and build treatment partnerships.
Timeline
2025: CMS establishes the $50 billion rural health initiative.
Year One: Vermont's $195 million award is distributed across about 250 awards.
November 12: Governor Phil Scott holds a press conference at Gifford Medical Center in Randolph.
Roadmap
The federal Rural Health Transformation program, a $50 billion initiative launched by CMS in 2025, gives states flexibility to direct money toward their own rural health priorities. Vermont's Year Two award extends that second funding cycle, moving from the Year One distribution toward scaling mental health care, primary care and workforce programs.
Vermont residents in rural communities may see expanded access to primary care, mental health urgent care and care coordination tools as Year Two funds are put to use. The funding is aimed at reducing health care costs and strengthening the local health workforce over time.
The takeaway
Rural residents should watch for announcements from the Agency of Human Services about new initiatives and funding opportunities as Year Two implementation proceeds. Tracking these updates can help communities identify local care services becoming available.
What happens next
Governor Phil Scott will hold a press conference on Thursday, November 12, at Gifford Medical Center in Randolph to discuss the funding.
Further reading
Explore more on Vermont healthcare policy and funding developments.
More information
Find details on the Vermont Rural Health Transformation Program on the state's healthcare reform portal.
Source note: This article includes information reported by Vermont Business Magazine.
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