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State announces $233 million in federal healthcare funds

in Regional
State announces $233 million in federal healthcare funds

Montana Gov. Greg Gianforte delivers the State of the State address before a joint session of the Montana Legislature on Jan. 13, 2025. PHOTO BY MICAH DREW

EBS Staffby EBS Staff
December 30, 2025

Gov. Gianforte, DPHHS announce award for rural healthcare

By Jordan Hansen DAILY MONTANAN

Montana is set to get $233 million dedicated to rural healthcare in 2026, the first award out of a federal fund that could net the state almost $1.2 billion over the next five years. 

Gov. Greg Gianforte and the state’s Department of Public Health and Human Services made the announcement on Monday. All 50 states received money through the Rural Health Transformation Program, which is being administered through the Centers for Medicare & Medicaid Services.

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Montana received the fourth-most money of any state. Only Texas, Alaska and California received more.

“With this unprecedented funding, we are taking a major step toward modernizing Montana’s rural health care systems,” Gianforte said in a press release. “Thanks to President (Donald) Trump, we’re launching this program and making a long-term commitment to our rural communities by providing Montana families with the access to health care they deserve.”

The state health department will now submit a revised budget to CMS and will partner with the Montana Office of Rural Health to host biannual stakeholder meetings, the state press release said. The first meeting of that group will be on Thursday, Jan. 22.

While it is a significant amount of funding, some legislators have questioned if it’s enough.

“This is a Band-Aid coming from the federal government,” Rep. Cora Neumann, a Bozeman Democrat, said in November. 

The money will flow toward five large initiatives, the release said. This includes upgrading telehealth infrastructure, increasing healthcare employment, providing more healthcare in schools and supporting efforts to decrease emergency room visits. Data collection and digitizing rural health records are additionally a focus for the funding, according to the news release.

The application for the funding was submitted after feedback from Montana hospitals, all eight tribal nations, state agencies and 300 formal responses to a request for information from the state, according to the news release.

“Every Montanan deserves top-level health care, no matter where they live,” state health department director Charlie Brereton said in a statement. “This landmark funding provides the resources we need to execute our plan, which includes stabilizing our most rural hospitals and bridging the health care divide for families living in every corner of our state.”

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