Rural Health Innovation Act of 2025
The Rural Health Innovation Act of 2025 would create two new grant programs under the Public Health Service Act to strengthen rural health care access and emergency services. The Rural Health Center Innovation Awards Program would provide five-year grants to eligible entities—Federally Qualified Health Centers (FQHCs), Rural Health Clinics (RHCs), or hospitals willing to convert to an FQHC or an RHC—so they can establish or maintain rural walk-in urgent care centers that also function as triage or staging sites for ambulance or air medical transport to emergency departments. The Rural Health Department Enhancement Program would award five-year, annual grants to rural local public health departments to expand emergency services, triage and transport, and some primary care activities in rural areas. Both programs are funded at about $25 million per year per program (roughly $50 million combined annually) through 2030, and include reporting requirements and limitations intended to track impact and ensure program integrity.
Key Points
- 1Rural Health Center Innovation Awards Program (Sec. 330Q)
- 2- Eligible entities: Federally qualified health centers (FQHCs), rural health clinics (RHCs), or hospitals that agree to convert to an FQHC or RHC.
- 3- Purpose: Establish or expand a rural center that serves as a walk-in urgent care site and a triage/staging facility for transport to an emergency department, staffed with clinicians and equipped with labs, X-ray machines, and cardiac monitoring.
- 4- Uses of funds: Expand hours, cover construction/renovation costs, or other activities to support the described services.
- 5- Grant term and amounts: 5-year grants, potentially renewable; first-year awards up to $500,000 for existing centers, up to $750,000 for start-ups; years 2–5 capped at $500,000 per year.
- 6- Application/selection: Applicants must submit a proposal; priority given to entities already operating as an FQHC or RHC; consideration of overlapping service areas and unmet need.
- 7- Reporting and oversight: Requires a 3-year post-enactment report on program success, savings, access, and utilization; oversight by relevant Senate and House committees.
- 8- Other: Entities receiving grants do not lose FQHC/RHC status due to activities funded by the program.
- 9Rural Health Department Enhancement Program (Sec. 330R)
- 10- Eligible grantees: Rural local public health departments located in rural areas.
- 11- Purpose: Strengthen rural health departments to provide emergency services, triage, transport to EDs, and primary care-like services similar to those offered in ED settings.
- 12- Uses of funds: Acquire equipment (e.g., laboratories, X-ray machines, cardiac monitors), hire additional health providers (including via partnerships with academic centers), and conduct community outreach.
- 13- Grant term and amounts: Annual awards for 5 years; up to $500,000 per year.
- 14- Calculation of funding: Year 1 amount based on estimated startup equipment/staff costs; years 2–5 based on patient volume and types of care delivered in the prior year.
- 15- Limitations: No more than 3% of annual funds may be used for staff expansion; in the first two years, no more than 3% for outreach activities.
- 16- Authorization: $25 million per year for 2026–2030.
- 17Funding and Administration
- 18- Each program is funded separately, totaling up to about $50 million annually ($25 million per program) through 2030.
- 19- Administration is through the Health Resources and Services Administration’s Office of Rural Health Policy.
- 20Definitions and scope
- 21- Rural area: Defined as areas deemed rural by the HRSA Office of Rural Health Policy for grant eligibility and purposes in fiscal year 2025 and any amendments thereafter.
- 22- Rural health department: Local public health department located in a rural area.
- 23Sponsorship and status
- 24- Introduced in the 119th Congress on February 21, 2025, sponsored by Rep. Kustoff (for himself and Rep. Pappas); referred to the Committee on Energy and Commerce.