Iowa was awarded $216,007,657.32 from the Centers for Medicare and Medicaid Services (CMS), marking the next phase of the state’s multi‑year Rural Health Transformation Program, Healthy Hometowns. The additional $7 million in Year 2 funding, compared to Iowa’s Year 1 award of $209,040,063.71, reflects continued confidence in Iowa’s implementation of Healthy Hometowns and the state’s leadership in transforming rural health care delivery, expanding access to essential services including cancer treatment and prevention, and build long‑term sustainability for hospitals and clinics across rural Iowa.
Healthy Hometowns is designed to ensure rural Iowans can access high‑quality care close to home. Through strategic investments in clinical services, technology modernization, workforce development, and care coordination, Iowa is working to build a more resilient rural health system.
With the announcement of Year 2 funding, Iowa HHS will continue implementing projects that address the evolving needs of rural communities and build on the progress established during the program’s first year.
“The Trump Administration’s $50 billion Rural Health Transformation Program gives states the resources and flexibility to bring care closer to home and build stronger, more sustainable health care systems for their rural communities,” said CMS Administrator Dr. Mehmet Oz. “As the program enters its second year, this next round of funding will help Iowa build on the progress made in year one and continue working toward lasting improvements in access, quality, and health outcomes for rural communities.”
“Year 2 is about building on the foundation we’ve established and continuing to turn this investment into meaningful results for rural communities,” said Iowa HHS Principal Deputy Director Larry Johnson. “We’re focused on working with health care providers and community partners to strengthen services, support the rural workforce, and ensure these investments deliver lasting benefits for Iowans.”
“Expanding access to care requires more than funding alone. It means strengthening the workforce, supporting clinical services, and connecting rural providers with the resources and technology they need to deliver high‑quality care,” said Dr. Robert Kruse, Iowa HHS State Medical Director. “Continued investment through Healthy Hometowns will help rural communities build sustainable care systems and improve access to both primary and specialty services.”
