The Trump administration Wednesday announced $125 million for technology modernization projects in Pennsylvania and South Dakota through the Rural Health Transformation Program. The Centers for Medicare & Medicaid Services announced a $35 million investment for Pennsylvania to expand and upgrade screening technology, buy operating room equipment and expand patient transportation options. Pennsylvania has already received $42 million to support 66 projects across the state, CMS said.
Ninety million dollars is being invested in South Dakota to accelerate digital health modernization, strengthen cybersecurity and enhance interoperability across rural and underserved communities, CMS said. This is in addition to $31 million in “Rural Strong” grants supporting 28 projects across 20 health systems in South Dakota.
The funding will improve infrastructure and advance technology across the state. Key investments will support diagnostic and surgical capacity, emergency care and access to specialty services, including oncology and cardiac care. Digital health improvements include modernizing electronic health records, cybersecurity and network infrastructure.
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The money aims to advance an integrated, value-based care model. The South Dakota funding will expand mobile tribal health services, maternal health resources and care coordination for underserved communities in frontier areas, CMS said.
Senator Mike Rounds, R-S.D., said the $90 million secured for South Dakota from the Rural Health Transformation Program, passed as part of the Working Families Tax Cuts Act, will give our healthcare providers the resources and infrastructure they need to provide quality services in the most rural parts of our state. South Dakotans rely on strong rural healthcare services to maintain a healthy quality of life.
The $50 billion in rural funding over five years was passed through the One Big Beautiful Bill Act, also known as the Working Families Tax Cuts legislation. The $50 billion investment will be distributed at $10 billion per year from 2026 through 2030.
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At the end of December 2025, CMS awarded every state that submitted applications a baseline of $100 million for the first year. Additional funding amounts have been determined based on a rural facility and population score, a technical score and CMS’s evaluation of each state’s proposed project design, implementation feasibility and anticipated impact, according to Public Consulting Group.
President Trump understands that every American deserves high-quality healthcare, no matter where they live. Health and Human Services Secretary Robert F. Kennedy Jr. said, We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access and bring care closer to home. We are giving states the flexibility to build solutions around the people they serve, while demanding accountability for results. That is how we strengthen rural health, improve the lives of patients and families, and Make America Healthy Again.