New Jersey Awards $83 Million in First Round of Rural Health Transformation Grants

On July 31, 2026, Governor Mikie Sherrill announced $83 million in grants as part of the first round of funding under the State’s five-year Rural Health Transformation Program, a federally funded initiative intended to improve healthcare access and health outcomes in rural communities. The grants will support 103 projects addressing five areas: recruiting and retaining healthcare professionals; strengthening hospitals, primary care practices and other healthcare facilities; expanding health technology and innovative care models; improving prevention; and managing chronic diseases. New Jersey received more than $147 million from the Centers for Medicare & Medicaid Services for the program’s first year, although funding for the remaining four years has not yet been determined. Approximately one in ten New Jersey residents live in rural communities, which the State reports are more likely to experience healthcare workforce shortages and other healthcare access challenges.

For healthcare providers and other organizations serving rural communities, the grants may provide opportunities to expand services, invest in facilities and technology, and develop new approaches to delivering care. The New Jersey Department of Human Services will oversee the program, while the New Jersey Department of Health will administer approximately $95 million in competitive grant funding. The state received more than 200 applications across six grant categories for the first round, and additional funding opportunities are expected as the program continues.