South Carolina will receive more than $200 million to expand health care services in the state’s remote communities through the Rural Health Transformation Program — funding created under Donald Trump’s signature tax cut legislation.
All 50 states will split $10 billion next year to support rural health care, a program designed to cushion the impact of the Trump administration’s sweeping budget reductions affecting rural hospitals. For South Carolina, the allocation totals $200,030,252.
Over the longer term, the initiative will provide $50 billion across five fiscal years, running from fiscal year 2026 through fiscal year 2030.
“Access to health care should not be determined by one’s ZIP code,” Republican U.S. Sen. Tim Scott said. “I was proud to champion this historic funding that will benefit South Carolinians by ensuring rural families in the Palmetto State and nationwide have access to life-saving care closer to home.”
How states can use the money
Federal officials say states must direct the funding toward specific efforts aimed at strengthening rural care access and improving health outcomes, including:
- Improving prevention and chronic disease care through evidence-based, measurable interventions
- Paying health care providers for certain covered items or services, as determined by the Administrator
- Expanding consumer-focused technology that helps prevent and manage chronic illness
- Helping rural hospitals adopt technology-enabled care, including remote monitoring, robotics, artificial intelligence, and other advanced tools
- Recruiting and retaining clinicians in rural communities, with service commitments of at least five years
- Upgrading IT systems through technical assistance, software, and hardware to boost efficiency, strengthen cybersecurity, and improve outcomes
- Helping rural communities right-size health care delivery, from preventive care to emergency services and post-acute support
- Supporting treatment access for opioid use disorder, other substance use disorders, and mental health needs
- Launching innovative care models, including value-based care arrangements and alternative payment approaches when appropriate
- Using additional approved strategies that promote sustainable access to high-quality rural health care, as determined by the Administrator
How the $50 billion will be distributed
Officials said half of the overall funding will be distributed equally among states. The other half will be allocated based on three factors:
- 50% based on how rural the state is
- 20% based on state policies
- 30% based on each state’s improvement plan
Rural communities, meanwhile, remain heavily reliant on public insurance coverage. The National Rural Health Association estimates that about 20% of adults and 40% of children in rural areas depend on Medicaid or the Children’s Health Insurance Program.
