Vermont Secures $195M Federal Grant to Transform Rural Health Care

Vermont has secured a significant federal investment of $195 million from the Centers for Medicare and Medicaid. This funding is part of the new Rural Health Transformation grant program, a source designed to enhance healthcare in rural areas.

Details of the Grant

The announcement was made on Monday, with Vermont’s Agency of Human Services having applied for this grant in November. The program allocates funds to states to remedy the adverse effects of Medicaid cuts on rural healthcare facilities. The amount awarded to Vermont is nearly double the initial expectations.

Jill Mazza Olson, director of Medicaid and health systems at the Agency of Human Services, expressed her enthusiasm about the funding. “I was absolutely thrilled when I saw the number,” Mazza Olson stated.

Background of the Rural Health Transformation Program

• The grant is part of the One Big Beautiful Bill Act passed in July.
• Nationally, $10 billion will be available each year from 2026 through 2030 for this initiative.
• Half of the national funding will be distributed equally among states.

Vermont’s allocation is among the highest per capita compared to other rural states. For context, Oregon received an average of $200 million, while varying amounts were awarded to neighboring states: New Hampshire received $204 million, Maine received $190 million, and Massachusetts was allocated $162 million.

Plans for Implementation

The Agency of Human Services aims to mobilize rapidly to utilize these funds effectively. The grant includes provisions for hiring staff to oversee its implementation, with a project manager being a top priority. Initial projects will likely focus on workforce development and provide tuition assistance for critical healthcare providers such as nurses and home health aides.

Another key goal is to enhance telehealth services in rural areas, thereby broadening specialty care access within homes and hospitals. Other potential initiatives involve mobile health teams and models to incentivize primary care.

Long-term Impact and Opportunities

This federal grant is viewed as a vital supplement to ongoing healthcare reforms in Vermont, rather than a standalone solution. “This is not our healthcare reform plan,” emphasized Mazza Olson. “This is an opportunity to support ongoing work in the state.”

Governor Phil Scott highlighted the importance of this funding in a press release, recognizing it as a positive development for rural healthcare. He thanked the previous administration for their partnership in advancing rural health transformation priorities.

The Agency of Human Services will need to navigate the challenge of fully utilizing the funds within one year, since unspent allocations are not expected to carry over into 2026. The swift implementation of these initiatives is critical as Vermont strives to improve healthcare access and affordability in rural communities.