Trump administration sends Virginia $122M for rural health

(The Center Square) – Virginia is getting $122 million in federal funding for rural health care as hospitals across rural parts of the Commonwealth continue to struggle with staffing shortages, rising costs and financial pressure.

The Trump administration announced the funding Friday through the federal Rural Health Transformation Program. The money will go toward expanding access to care, growing the health care workforce and investing in new technology across rural Virginia.

The $122 million is the first portion of a larger $189 million award for Virginia for fiscal year 2026.

Projects include remote patient monitoring, virtual care, mobile clinics, community paramedicine and maternal care. Funding will also support rural residency and provider training slots, apprenticeships and other programs aimed at getting more workers into health care careers.

The investment comes as Virginia’s rural hospitals face mounting pressure.

Virginia has 36 rural hospitals among its 109 licensed inpatient hospitals, according to a 2026 report from the Joint Commission on Health Care. JCHC staff identified seven rural hospitals at the highest risk of either immediate closure or financial distress.

Low patient volumes, inadequate reimbursement, rising costs and workforce shortages are among the problems facing rural hospitals, the report found.

Labor expenses typically account for more than half of a hospital’s operating costs, adding to the pressure on smaller hospitals with limited financial room.

The new funding is aimed in part at those problems, with federal officials pointing to workforce development, new technology and expanded access to care as major areas of investment.

The program also includes funding for early-stage health technology companies, efforts to improve coordination between providers and integrated care for people enrolled in both Medicare and Medicaid. Youth wellness programs and continued evaluation of the rural health initiatives are also included.

CMS Administrator Dr. Mehmet Oz said the investment is intended to bring more health care services closer to rural patients while creating longer-term improvements in how care is delivered.

Several Republican members of Virginia’s congressional delegation backed the rural health investment Friday, including Reps. Robert Wittman, Jen Kiggans, John McGuire, Ben Cline and Morgan Griffith.

This post was originally published on The Center Square.

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