Arizona is investing $167 million in federal funding to transform healthcare in rural communities across the state — expanding access, training more providers, and strengthening the health systems that more than 786,000 Arizonans depend on every day.
Program Runs: December 2025 – October 2030
Lead Agency: Arizona Health Care Cost Containment System (AHCCCS)
More than 786,000 Arizonans (11% of total population) live in rural areas where healthcare is critically strained and hard to reach.
This program is Arizona’s most significant investment in rural health in a generation. It is designed to improve healthcare access, build a stronger rural health workforce, and create lasting change.
Arizona’s program is built around four areas of investment. Funding flows to rural hospitals, clinics, Tribal health programs, universities, nonprofits, and community organizations working in these areas.
Arizona’s RHTP proposal focuses on four strategic goals:
These efforts are designed to improve health outcomes while making care more affordable and reliable.
$47 million per year | Led by the Arizona Office of Economic Opportunity (OEO)
Too many rural communities can’t find or keep doctors, nurses, and behavioral health providers. We’re fixing that through the Rural Health Workforce Training and Development Program by funding financial incentives and supports to recruit and retain medical staff, as well as expansions to rural health education and training programs, residencies, career pipelines starting in K-12.
$27 million per year | Led by the Arizona Department of Health Services (ADHS) and AHCCCS
Targeted public health grants address behavioral health and substance use disorder (SUDs), maternal-fetal health, and chronic disease prevention and management — the issues hitting rural Arizonans hardest.
$38 million per year | Led by AHCCCS
We’re meeting patients where they are — through telehealth, mobile clinics, and innovative care models that bring services to communities instead of making communities travel long distances to receive them.
$38 million per year | Led by AHCCCS
Rural hospitals and clinics often operate on razor-thin margins. We’re helping providers share costs, modernize operations, and build the financial stability to serve their communities long-term.
This program only works through partnership. Arizona is working closely with:
How Arizona Is Distributing RHTP Funds
Beginning in Spring 2026, Arizona will use a range of competitive and direct award grant programs to distribute RHTP funding to organizations doing work on the ground.
Types of Funding Mechanisms
Technical Assistance & Support
Technical assistance will be available to help smaller organizations apply and administer funds. Dedicated technical assistance for Tribal Nations and tribal health organizations will also be available.
For Vendors and Contractors
All RHTP contracts and subawards include applicable federal and state requirements. Administrative costs for all funds are capped at 10% per federal requirements, no exceptions. Vendors providing products and services to grantees should be prepared meet federal audit standards (2 CFR Part 200, Single Audit requirements for entities expending over $750,000 in federal funds).
View the AHCCCS Grants Initiatives page.
Who can receive funding?
Funding goes to organizations, not individuals. This includes local governments, hospitals, universities, community colleges, community health centers, nonprofits, rural health associations and consortiums, federally recognized Tribes, and more. Specific eligiblity wil be listed with each grant opportunity.
Are Tribal communities included?
Yes — as a top priority. Ongoing government-to-government Tribal Consultation with 22 federally recognized Tribes in Arizona will continue throughout the five-year program. Prospective grant applicants are strongly encouraged to demonstrate meaningful partnership and engagement with Tribal health organizations across all four investment areas.
How do I know if my organization qualifies?
Check back when applications open — eligibility criteria will be clearly listed. When in doubt, reach out. We'd rather help you figure out if you're eligible than have you not apply.
Is this just for healthcare providers?
No. Universities, community colleges, nonprofits, social service organizations, and Tribal and local governments are all potential partners and applicants depending on the program area.
When will money actually start flowing?
Year 1 funding is targeted to be fully committed by October 2026. Grantee’s have until October 30, 2027 to spend funds.
Coming Summer 2026
The RHTP Steering Committee will be established by Governor Hobbs to provide executive recommendations on implementation and program direction on an ongoing basis for the full five-year program. It will include senior leaders from AHCCCS, ADHS, OEO, the Governor’s Office, and rural health stakeholders.
Meeting schedules, members, and materials will be posted here once the committee is active.
Arizona is committed to transparency and collaboration throughout RHTP implementation, including:
Disclaimer: This website 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 financial assistance award totaling $166,988,955,92 with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor endorsement, by CMS/HHS, or the U.S. Government.
