Ciscomani Calls on CMS to Ensure Governor Hobbs Doesn’t Shortchange Arizona’s Rural Communities

October 7, 2025

WASHINGTON – Rep. Juan Ciscomani (AZ-06) joined Rep. Dan Newhouse (R-WA) on a letter to Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz advocating for fair distribution of funds from the Rural Health Transformation Fund to states with Democrat governors. The Rural Transformation Fund is the largest ever investment in rural hospitals and was signed into law as part of the H.R. 1, the Working Families Tax Cut Act.

While House Republicans are fighting to ensure rural communities receive the resources they were promised, Senate Democrats including Senators Mark Kelly (D-AZ) and Ruben Gallego (D-AZ) are holding the federal government shut down and demanding the repeal of this rural hospital fund as part of their partisan wish-list.

Ciscomani and Newhouse were additionally joined by Reps. Michael Baumgartner (R-WA), David Valadao (R-CA), Doug LaMalfa (R-CA), Jay Obernolte (R-CA), Pete Stauber (R-MN), Brad Finstad (R-MN), Michelle Fischbach (R-MN), and Gabe Evans (R-CO) in penning the letter.

"As Republican Members of Congress from states with a Democrat Governor, we believe it is imperative that the program be implemented fairly so that funding is allocated specifically to rural healthcare providers, rather than diverted to urban centers that do not face the same challenges," the Members wrote. "During the approval process of state applications, we urge HHS and CMS to ensure funds are distributed to rural communities with the greatest need, making rural America healthy again regardless of political affiliation."

“Rural hospitals are the backbone of communities like Benson and Willcox, providing care that families simply cannot go without. But the financial challenges we face are real, and future shortfalls could threaten our viability,” Julia Strange, Vice President, External Affairs, TMC Health, Southern Arizona said. “The Rural Transformation Fund is critical to ensuring we not only survive, but also innovate and transform to meet the needs of today and tomorrow. These funds are a start to protecting access to vital healthcare services and supporting a stronger future for rural Arizona.”

The Rural Health Transformation (RHT) Program was established by H.R. 1, The Working Families Tax Cut Act, and provides $10 billion per year over five years to empower states to strengthen and improve health care access in rural communities across America.

· 50 percent of the funding will be distributed equally amongst all approved states.

· 50 percent will be allocated by CMS based on a variety of factors including rural population, the proportion of rural health facilities in the state, the situation of certain hospitals in the state, and other factors specified by CMS in the NOFO.

According to CMS, states must use RHT Program funds for three or more of the approved uses of funds:

· Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.

· Providing payments to health care providers for the provision of health care items or services, as specified by the Administrator.

· Promoting consumer-facing, technology-driven solutions for the prevention and management of chronic diseases.

· Providing training and technical assistance for the development and adoption of technology-enabled solutions that improve care delivery in rural hospitals, including remote monitoring, robotics, artificial intelligence, and other advanced technologies.

· Recruiting and retaining clinical workforce talent to rural areas, with commitments to serve rural communities for a minimum of 5 years.

· Providing technical assistance, software, and hardware for significant information technology advances designed to improve efficiency, enhance cybersecurity capability development, and improve patient health outcomes.

· Assisting rural communities to right size their health care delivery systems by identifying needed preventative, ambulatory, pre-hospital, emergency, acute inpatient care, outpatient care, and post-acute care service lines.

· Supporting access to opioid use disorder treatment services (as defined in section 1861(jjj) (1)), other substance use disorder treatment services, and mental health services.

· Developing projects that support innovative models of care that include value-based care arrangements and alternative payment models, as appropriate.

· Additional uses designed to promote sustainable access to high quality rural health care services, as determined by the Administrator.

See the full letter here.

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