Nevada Awarded $180 Million in First-Year Rural Health Grant

Nevada’s new health agency is preparing to roll out a major infusion of federal dollars aimed squarely at rural communities.

Gov. Joe Lombardo announced Dec. 29 that the Centers for Medicare and Medicaid Services (CMS) awarded nearly $180 million to the Nevada Health Authority (NVHA) for the first year of the federal Rural Health Transformation Program, a multi-year initiative intended to improve access, outcomes, infrastructure, workforce, and technology in rural health systems.

State leaders described the award as a chance to strengthen rural healthcare “where it actually happens” in small hospitals, clinics, EMS systems, and community-based services that often operate with thin staffing and long distances between patients and providers.

Under NVHA’s outline, the funding will support four broad tracks:

1) Rural Health Outcomes Accelerator Program
A push toward value-based and innovative care models that prevent and better manage chronic disease. NVHA says this may include collaborative care strategies, remote or hybrid care approaches, digital tools for patient health management, and virtual mentorship programs for providers.

2) Flex Fund for Rural Providers
A modernization lane for rural healthcare infrastructure—technology, equipment, supplies, mobile units, emergency services, and other urgent needs. NVHA has signaled it will encourage regional purchasing and shared services to stretch dollars further, and that funds must be used within Nevada healthcare facilities.

3) Workforce Recruitment and Rural Access Program
A direct response to the chronic shortage of rural healthcare workers. NVHA’s plan includes incentives for providers to live and serve in rural areas, tuition aid tied to rural service commitments, and a rural physician residency program.

4) Rural Health Innovation and Technology Grants
A technology-focused track intended to modernize health information systems, align with CMS digital health efforts, and strengthen cybersecurity—while also improving telehealth capacity in rural areas.

NVHA says it will announce opportunities to apply for Rural Health Transformation funding later in the spring and summer, using public workshops, its Rural Health Transformation website, its ListServ, and other channels. The program’s overall grant period runs through 2030, but states must reapply annually for additional funding.

To guide implementation, NVHA is forming a Rural Health Transformation Steering Committee, with members appointed by the NVHA director with approval from the governor. NVHA describes the committee as a statewide, community-driven governance group meant to monitor progress and recommend course corrections, so the plan stays aligned with federal goals and produces durable improvements.

The steering committee is expected to convene quarterly, with meetings open to the public and including a public comment period. NVHA’s flyer lists a mix of state, tribal, provider, county, and consumer representation, including rural and frontier consumer seats and rural EMS representation. Applications for 2026 are due Jan. 19, 2026. 

NVHA will host a virtual Winter Stakeholder Update Workshop on Tuesday, Jan. 27, 2026, at 1 p.m. via Microsoft Teams. The agenda indicates NVHA leadership will cover legislative updates, major project updates, and the latest information on the Rural Health Transformation Program, with time for public comment.