By: Jacob Orledge
BISMARCK, N.D. (North Dakota Monitor) – The federal government has awarded $199 million to North Dakota for the first year of a five-year grant program centered on improving rural health care across the nation.
The allocation of the funds, which has to be formally approved by the Legislature in a special session scheduled to begin on Jan. 21, will focus on four areas: Workforce, preventive care and healthy eating, bringing high-quality health care closer to North Dakotans and connecting technology and data with medical providers.
“We have a once-in-a-generation opportunity to rethink and reshape how health care is delivered to our rural communities,” Gov. Kelly Armstrong said in a news release.
The Legislature will have limited opportunity to make any changes to how the funds will be used. North Dakota Health and Human Services submitted an application earlier this fall for the state’s share of the $50 billion Rural Health Transformation Program, with legislative input, and the state is expected to adhere to the funding plan laid out in the application.
Health and Human Services is working to establish a framework for the distribution, prioritization and compliance monitoring of the grant funding in the lead up to the special session. The department expects to announce the first grant opportunities using the funds in the first three months of 2026.
“Being awarded this grant funding is an important milestone,” Sarah Aker, medical services executive director for Health and Human Services, said in a news release. “Now, our focus shifts to implementation so the resources can start making an impact in rural communities.”
The $199 million award from the Centers for Medicare and Medicaid Services is for fiscal year 2026. Additional funding will be announced on an annual basis for the remaining four years of the program. Each state is eligible for a minimum of $500 million, but could receive up to $1 billion, over the five years.
“This funding allows North Dakota to build on existing partnerships and invest in long-term solutions to move toward making our state the healthiest in the nation,” Pat Traynor, commissioner for North Dakota Health and Human Services, said in a news release.
North Dakota received a similar amount to its neighbors: Minnesota was awarded $193 million, $189 million went to South Dakota and Montana received $233 million.
New Jersey received the smallest award, at $147 million, while Texas was awarded the highest amount, $281 million.


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