Alaska deploys $272M federal award to reshape rural health care delivery

The Alaska Department of Health received $272,174,856 from the Centers for Medicare and Medicaid Services on December 29, 2025, to strengthen rural health systems across the state. The award represents the first year of a multi-year federal program created by Congress in 2025.

The funding is part of a $50 billion federal opportunity called the Rural Health Transformation Program. Alaska's first budget period runs through October 30, 2026. First-year award funds must be fully spent by September 30, 2027.

The program aims to expand health care access, develop the workforce, upgrade technology, and support community wellness in rural, remote, and frontier communities. It offers three funding pathways: Readiness, Planning, and Project Implementation. Eligibility extends to health care providers, Tribes, hospitals, social service organizations, and educational partners.

Federal rules cap administrative costs at 10 percent of the total award. Capital expenditures and infrastructure costs are capped at 20 percent. The program prohibits funds for major construction, land acquisition, direct student loans, or supplanting existing funding sources.

First application round draws 1,800 submissions

The department opened its first letter of interest submission period from February 17 to March 11. Nearly 1,800 submissions came in. The department reviewed those letters with the Alaska Community Foundation, its grant administration partner.

Applicants learned in early to mid-May whether they advanced to Project Implementation, Planning, or Readiness pathways or were deferred or declined. Full applications for Project Implementation opened in mid-May for approximately three weeks.

Sessions address care delivery challenges

The department released webinar recordings and session materials from its Rural Health Transformation Program Impacts Series, which convened participants May 13 through 15. The sessions covered specialty care access, workforce recruitment challenges, telehealth expansion, broadband and infrastructure barriers, interoperability, and strategies for building sustainable, patient-centered systems.

The discussions took place across five initiative areas: Healthy Beginnings, Health Care Access, Healthy Communities, Strengthen Workforce, and Spark Technology and Innovation. A sixth initiative area, Pay for Value: Fiscal Sustainability, remains in planning for a June session.

The department posted recordings of all five sessions on its website. Questions may be directed to [email protected]. Those interested in updates may sign up for RHTP notifications through the department's website.