Governor Ivey Announces First Grants in $144 Million Rural Healthcare Program
Mon, August 24, 2026 at 2:22 PM
(Office of Governor Kay Ivey)
MONTGOMERY, Ala. (WBMA) —Gov. Kay Ivey announced Monday the awarding of 138 grants totaling more than $144 million to healthcare providers and institutions across Alabama as part of the Alabama Rural Health Transformation Program
The grants will fund projects designed to improve healthcare access, quality and outcomes in rural communities across all 67 Alabama counties
The Alabama Rural Health Transformation Program, administered by the Alabama Department of Economic and Community Affairs (ADECA), includes 11 initiatives focused on strengthening healthcare services and infrastructure in rural areas. The first round of awards covers five initiatives: rural health, rural workforce, mental health, rural health practice, and collaborative electronic health record, information technology and cybersecurity projects
Additional grant awards under the remaining initiatives are expected to be announced later
Ivey said the program is intended to support long-term changes in the delivery of healthcare throughout the state. She credited state agencies, federal policymakers and healthcare professionals involved in developing and implementing the program
The ARHTP was developed through a collaboration involving the Governor’s Office, ADECA, the Alabama Department of Finance, the Alabama Medicaid Agency and the Alabama State Health Planning and Development Agency
The program is supported through the federal Rural Health Transformation Program administered by the Centers for Medicare & Medicaid Services (CMS), part of the U.S. Department of Health and Human Services. The federal financial assistance award totals $203.4 million and is funded entirely by CMS and HHS
CMS Administrator Dr. Mehmet Oz said the federal program is intended to expand access to healthcare in rural communities, including access to primary and specialty care
ADECA Director Kenneth Boswell said interest in the program was reflected in attendance at six informational meetings held across Alabama, five grant application workshops and the volume of applications submitted
The grants represent the first round of funding under Alabama’s broader rural healthcare transformation plan. State officials say additional awards will follow as other program initiatives move through the funding process
