South Carolina Awarded $200 Million in Rural Health Transformation Program Funding

COLUMBIA, S.C. - The Centers for Medicare & Medicaid Services (CMS) announced South Carolina will receive $200,030,252 in federal Rural Health Transformation (RHT) Program funding for fiscal year 2026. The RHT Program was established under the Working Families Tax Cuts Act signed into law by President Trump July 4, 2025.

"Thanks to the hard work of SCDHHS Director Eunice Medina and her team, South Carolina has secured $200 million through President Trump's Rural Health Transformation Program," said Governor Henry McMaster. "We will put these funds to work to strengthen rural health care and help ensure South Carolina continues to lead the way in Making America Healthy Again."

Governor McMaster has designated the South Carolina Department of Health and Human Services (SCDHHS) as the lead agency to implement South Carolina's RHT Program. The program is a cooperative agreement between CMS and state governments. SCDHHS will work closely with CMS to implement the initiatives described in South Carolina's application in line with federal requirements, quality standards and funding rules.

South Carolina's approach to this funding opportunity will emphasize one-time, high-impact investments that remove systemic barriers and build long-term capacity. This investment will enable the state to modernize rural healthcare infrastructure, expand access to essential services and build a resilient, sustainable healthcare system that delivers measurable improvements in health outcomes for generations to come.

South Carolina's RHT Program application focused on five major initiatives to increase access to quality healthcare services, particularly those that focus on improving chronic disease and maternal health outcomes across the state's rural communities. They are:

• Connections to Care: Expands digital infrastructure by implementing electronic health records, remote patient monitoring, telehealth services and a statewide resource database platform to improve care coordination and access
• Leveling up: Scales successful pilot programs statewide, focusing on chronic disease management, pediatric care quality and workforce development
• Wellness Within Reach: Deploys mobile health units, crisis response teams and pop up clinics to bring care directly to underserved populations
• Shoring up to Sustainability: Strengthens rural healthcare systems through targeted investments in workforce recruitment and retention, facility upgrades and provider training
• Tech Catalyst Fund: Supports rural health technology startups and communitybased innovations to drive long-term health and economic improvements

"The Rural Health Transformation Program provides a once-in-a-generation opportunity to strategically address barriers that have long-hindered access to quality care in our rural communities," said SCDHHS Director Eunice Medina. "We look forward to working closely with CMS to improve health outcomes across the state by bringing these initiatives to life as quickly as possible."

South Carolina developed its RHT plan and outcomes-driven initiatives by leveraging longstanding relationships with state agencies, healthcare providers, advocates, community leaders and local and state officials. This produced more than 350 proposals with ideas for inclusion in the state's RHT Program plan. South Carolina's RHT application and other information, including the slides and recording from the state's November 2025 public webinar, are available at https://scdhhs.gov/rhtp.

SCDHHS will provide additional guidance on how stakeholders can learn more about RHT Program funding opportunities. Future webinars and RHT Program guidance will be announced via SCDHHS' Medicaid bulletins. Healthcare providers and other interested stakeholders can sign up to receive Medicaid bulletins on SCDHHS' website.

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