OLYMPIA, WA — Washington will receive $181 million in federal funding to support rural health care systems across the state in fiscal year 2026, according to an announcement from Bob Ferguson.
The funding comes from the federal Rural Health Transformation Program, a nationwide initiative that invests $50 billion to strengthen rural hospital infrastructure, workforce capacity and access to care. Washington’s award is slightly below the $200 million the state requested and will be allocated in the coming months .
According to the governor’s office, the funding is intended to support rural providers, expand behavioral and maternal health services, address workforce shortages and improve access to emergency care. Washington has more than 1 million rural residents, with 22 of its 39 counties classified as fully rural and the remaining counties containing rural areas .
“This funding will help fortify rural communities,” Ferguson said in a prepared statement, noting that it will not replace broader federal funding reductions affecting health care systems .
Washington Health Care Authority Director Ryan Moran said the funding is aimed at ensuring rural residents can access care closer to home while supporting hospitals and clinics that serve those communities .
State officials said the funds will be used to develop community-based care options, invest in Native family health programs, expand health care technology, strengthen specialty and emergency care access, grow the rural health care workforce and support behavioral health systems in rural areas .
The state plans to collaborate with multiple agencies and partners, including the Department of Health, Department of Social and Health Services, Area Agencies on Aging and the Washington Hospital Association, to determine how funding will be distributed. Officials said rural communities, health care providers and Tribes will be involved in directing funds where they are most needed .
Part of the funding will be used to expand Project ECHO, a tele-education and clinical support program operated by the University of Washington School of Medicine, which connects rural clinicians with specialists to address complex medical conditions .
The Rural Health Transformation Program is administered by the Centers for Medicare & Medicaid Services and provides $10 billion annually from 2026 through 2030 to help stabilize and modernize rural health systems nationwide .
