SPEAKIN’ OUT NEWS
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State Health Officer Dr. Scott Harris speaks to Alabama lawmakers at the State House, outlining how the state could receive at least $100 million annually for rural health care through a new federal grant program. (Photo credit: Alabama Daily News)
Alabama is expected to receive at least $100 million annually for rural health care over the next five years through a new federal grant program created under the “One Big Beautiful Act,” State Health Officer Dr. Scott Harris told lawmakers Wednesday. But, he cautioned, much uncertainty remains about how the money can be used.
Speaking at a budget hearing at the Alabama State House, Harris said the state’s share comes from the $50 billion Rural Health Transformation Grant included in the nearly 900-page Republican-backed package of tax cuts, spending reductions, and policy changes signed into law by President Trump in July.
Harris said Alabama could ultimately receive as much as $200 million a year. The grants will be administered by the Centers for Medicare & Medicaid Services (CMS), which just held its first call with state health officials last week. Applications are expected in mid-September, with states required to submit proposals by early November. Funds must be awarded before year’s end.
“It’s an enormous amount of money,” Harris told lawmakers, emphasizing that the funding is designed not just to sustain existing hospitals but to transform rural health care delivery. Eligible uses include:
• Improving access and delivery systems.
• Supporting innovative care models.
• Recruiting and retaining rural providers.
• Upgrading technology and infrastructure.
Still, Harris noted CMS has not yet defined what qualifies as “rural” for the program, a key detail for determining which communities will benefit.
The new funding comes as 27 of Alabama’s 50 rural hospitals are at risk of closure, according to former Alabama Hospital Association president Dr. Don Williamson. Nineteen face imminent threat within two to three years. Lawmakers warned that closures affect the entire state, forcing patients into urban hospitals and making it harder to attract jobs.
Harris also revealed the Alabama Department of Public Health (ADPH) lost $175 million in federal grants in March, after the Trump administration abruptly ended long-running funding streams, including $160 million from the Epidemiology and Laboratory Capacity grant. That program had supported outbreak response, lab staffing, and infection-control training statewide.
“In all, we had $175 million or so of money that we thought we had on a Monday that we didn’t have access to on a Tuesday,” Harris said.