Abbott Announces $99 Million In Funding for Rural Hospitals to Recruit Workers

AUSTIN, TX — Greg Abbott announced that the Texas Health and Human Services Commission will distribute $99 million in federal funding to rural hospitals to support workforce recruitment and retention as part of the state’s Rural Texas Strong initiative.

The funding, part of the “Next Generation of the Small Town Doctor and Team” program, is aimed at strengthening access to care in rural communities by helping providers attract and retain health care workers.

"Accessible care for all Texans is vital for the sustained success of our state," said Governor Abbott. "This grant will provide rural hospitals with the tools they need to retain and recruit the next generation of health care workers. I thank HHSC for helping to provide every Texan the care they need to live healthy lives." 

Eligible uses for the funding include developing scholarships and pipeline programs for high school students pursuing health care careers, offering relocation or signing bonuses for providers, and creating new residency training programs in partnership with academic institutions.

“Strong rural health care systems are essential to the well-being of families and communities across Texas,” HHS Executive Commissioner Stephanie Muth said. “This investment supports the doctors, nurses and care teams who serve rural Texans every day.”

Licensed rural health providers may apply for the funding through a competitive process, with applications due May 27.

The $99 million allocation is part of a larger $281.3 million first-year award HHSC received through the Centers for Medicare & Medicaid Services Rural Health Transformation Program. The broader Rural Texas Strong plan is fully federally funded and includes six initiatives aimed at improving health outcomes in rural areas.