Alaska Department of Health issues first rural health award notices

The Alaska Department of Health intends to award more than $4.5 million to 19 health projects in communities across the state, the department announced Friday. The notices are the first selections made under Alaska's $272 million federal rural health award.

The notices are statements of intent, not final awards or executed grant agreements. Final award amounts and project terms remain subject to budget review, resolution of award conditions and execution of a grant agreement, the department said. It is working directly with applicants and the Centers for Medicare & Medicaid Services to resolve outstanding questions.

The department will announce additional notices each Friday as they are finalized, rather than wait for the entire review process to finish. Officials said the selected projects are meant to expand access to care, strengthen the health workforce, improve infrastructure, advance technology and support new approaches in rural and hub communities.

"These awards represent more than individual projects, they represent a long-term investment in healthier communities across Alaska," said Commissioner Heidi Hedberg. "Throughout this process, we've heard directly from communities about the challenges they face and the solutions they believe will make the greatest difference."

Gov. Mike Dunleavy said the program supports his Healthy Families initiative and community-driven health-system improvements. CMS Administrator Dr. Mehmet Oz said the federal program is intended to help states develop locally driven rural care solutions.

CMS awarded Alaska $272,174,856 for the first year of the Rural Health Transformation Program, a $50 billion, five-year national initiative authorized by Congress. Alaska's letter of interest period ran from Feb. 17 to March 11, and the department received nearly 1,800 letters. Organizations submitted roughly $2.5 billion in first-year requests against about $272 million available. The Alaska Community Foundation handles intake and subawards under department direction, and final funding decisions rest with the commissioner, subject to CMS approval.

Projects are chosen based on alignment with Alaska's program goals, transformational potential, rural impact, sustainability and contribution to a balanced statewide portfolio, the department said. A list of the selected projects is posted on the department's website.

First-year funds must be fully spent by Sept. 30, 2027, or they are subject to federal recapture and redistribution. The department anticipates opening the letter of interest or application period for year two in late summer 2026, and plans a public dashboard of all investments once the awards are announced.