Iowa receives $216 million in Year 2 funding from the Centers of Medicare and Medicaid Services (CMS) to advance Rural Health Transformation through Healthy Hometowns

DES MOINES, Iowa — 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.”

About Healthy Hometowns
Healthy Hometowns is Iowa’s strategic response to rural health challenges, developed in collaboration with rural hospitals, health systems, and community partners. The initiative uses a hub‑and‑spoke model that includes six key initiatives:

1. Hometown Connections: Expanding Centers of Excellence and developing health hub and spoke networks through investments in telehealth, medical equipment, recruiting top-tier healthcare providers, and care for uninsured Iowans.

2. Combat Cancer – Prevent and Treat: Increasing access to cancer screening and treatment, forming cancer health hub and spoke networks, and supporting families and research.

3. Communities of Care: Co‑locating providers for coordinated multidisciplinary care supported by community health workers.

4. Health Information Exchange: Ensuring seamless access to health records statewide to support continuity of care.

5. Emergency Medical Services (EMS) Community Care Mobile: Bringing care directly to rural residents through mobile health services and high‑risk neonatal transport support.

Transparency and Accountability
Iowa HHS maintains a publicly accessible Rural Health Transformation Dashboard that provides information on funding, investments, and measurable outcomes as the initiative progresses. The dashboard and additional information about Iowa’s Rural Health Transformation Project are available at hhs.iowa.gov/HealthyHometowns.

This project is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a multiyear financial assistance award. Year 1 funding totaled approximately $209,040,063.71, fully funded by CMS/HHS. Year 2 funding totals $216,007,657.32, fully funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement by, CMS/HHS or the U.S. Government.