The Idaho Department of Health and Welfare (DHW) submitted the state’s application Tuesday for the federal Rural Health Transformation Program, seeking up to $200 million per year for five years — a total of $1 billion — to revamp healthcare delivery in rural communities.
The funding request follows Governor Brad Little’s Executive Order 2025-08, the “Making Rural Idaho Healthy Again Act,” which created a collaborative task force composed of members of the executive and legislative branches, representatives from Idaho’s federally recognized tribes, and other stakeholders. The group worked to identify the state’s most pressing rural healthcare needs, which will guide the proposed use of federal funds.
“Idaho is a mostly rural state, and we are grateful for the significant investments President Trump and Congress have committed to improving healthcare access, quality, and outcomes in rural Idaho and across the country,” Governor Little said. “We are proud of the effective, collaborative approach we utilized in preparing Idaho’s application for funding through this transformative new program.”
The application outlines five initiatives developed with input from the public, tribal nations, and state legislators. Once awarded, the funds will support improvements in healthcare infrastructure, patient outcomes, and access to quality care in rural areas. The DHW plans to issue competitive solicitations for the initiatives, with subawards expected to go to providers, educational institutions, technology vendors, and tribal organizations. The DHW and Department of Administration will oversee program implementation with support from temporary contractors as needed.
“Idaho’s approach to integrating stakeholder perspectives in advancing healthcare for rural communities marks meaningful progress,” said Senator Julie VanOrden, Senator Scott Grow, Representative Wendy Horman, and Representative John Vander Woude. “This funding will play a critical role in strengthening healthcare infrastructure and services across rural Idaho.”
The Rural Health Transformation Program was authorized by the One Big Beautiful Bill Act (Section 71401 of Public Law 119-21) and empowers states to invest in system-wide changes to improve healthcare access, quality, and outcomes for rural populations. Idaho expects to learn the federal award amount by December 31, 2025.
If approved, the funding will provide a transformative boost to the state’s rural healthcare system, addressing longstanding gaps in care and helping communities across Idaho meet the needs of their residents.
By DNU Staff