$25M Grant Funding for Rural Hospitals, Deadline May 28

Governor Abbott, HHSC Announce $25 Million In Grant Funding For Rural Hospitals

April 22, 2026 | Austin, Texas
| Press Release

Governor Greg Abbott today announced that the Texas Health and Human Services Commission (HHSC) is making $25 million in grant funding available to eligible hospitals that serve rural communities.

“A strong rural health system is critical to help ensure that Texans across our state get the care they need,” said Governor Greg Abbott. “This $25 million investment will support rural hospitals, expand access to essential services, and improve health outcomes for families in these communities. I thank the Texas Legislature and our health care partners for their dedication to strengthening care in rural Texas.”

“For families in rural communities, reliable access to health care can make all the difference,” HHS Executive Commissioner Stephanie Muth said. “These grants reflect HHSC’s commitment to serving Texans wherever they live, and I thank Governor Abbott and state lawmakers for their leadership and support.”

The Innovation Grant supports rural hospitals and related public entities that provide essential care to Texans. The funding focuses on strengthening their financial stability and advancing better patient outcomes. HHSC will award the grants over three years, with a maximum award of $5 million.

Priority will be given to initiatives that focus on improving health care facilities or services for:

• Pregnant women or mothers who have recently given birth
• Children and teens
• Older adults
• People who are uninsured Qualified rural hospitals have until May 28 to apply for the grant. Grant awards are competitively based on a rural hospital’s application and supporting documentation as identified in the Request for Application.

Through the Rural Health Stabilization and Innovation Act passed in 2025 by the 89th Texas Legislature, HHSC provides grant funding and administers programs that strengthen rural health care. For more information on rural hospital grants and other related programs, visit the HHSC Rural Hospital Finance webpage.