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A closer look at the $50B rural health fund in the new reconciliation law

By KFF.org  
   July 17, 2025

Members of Congress from both parties raised concerns about the potential impact on rural hospitals in the OBBBA. In response, and just prior to passage, the Senate added $50 billion in funding for a new 'rural health transformation program.' This brief describes the rural health fund, explains what the law says about the allocation of funds, and highlights outstanding questions about how the funds will be distributed across and within states to pay rural hospitals and for other purposes.

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