Alaska receives nation’s highest per-capita award in $50 billion rural health program

By SUZANNE DOWNING

Alaska has been approved for participation in the Federal Rural Health Transformation Program and will receive one of the largest awards in the nation under the Trump administration’s new $50 billion initiative to strengthen rural health care.

While all 50 states were approved for funding, Alaska received more than every state except Texas, and by far the most on a per-capita basis.

The White House announced earlier today that all states will receive funding through the landmark investment created by Republicans under President Trump’s Working Families Tax Cuts legislation.

The administration described the program as the largest federal investment in rural health care in American history, aimed at expanding access, supporting the health care workforce, and delivering innovation to rural and frontier communities nationwide. The legislation establishing the program passed without support from Democrats, who voted against it.

Under the announced awards, Texas will receive the most at $281,319,361, while Alaska will receive $272,174,856.

While Texas slightly exceeds Alaska in total dollars, the comparison shifts dramatically when population is considered. With roughly 733,000 residents, Alaska’s award works out to about $371 per resident. Texas, with a population of approximately 30.5 million, will receive about $9 per resident. That means Alaska’s per-capita funding is more than 40 times higher than Texas’s and higher than any other state in the nation.

State and federal officials in Alaska marked the approval at a press conference arranged by Gov. Mike Dunleavy, US Sen. Dan Sullivan, Congressman Nick Begich, and Alaska Department of Health Commissioner Heidi Hedberg. Sen. Lisa Murkowski was not included.

The funding is intended to address long-standing challenges in Alaska’s health care system, which serves a widely dispersed population across vast distances, often without road access.

The Rural Health Transformation Program is structured to give states more flexibility in how funds are used, allowing Alaska to tailor solutions to its unique needs.

Eligible uses include modernization of health care technology, recruitment and training of health care workers, development of innovative care models such as telehealth and mobile clinics, and prevention efforts targeting chronic disease and substance use disorders.

Alaska’s health care system faces the highest costs and most complex logistics in the country, with many communities reachable only by air or water — and due to weather, some are not reachable at all for days on end. The program’s flexible design allows the state to move away from one-size-fits-all federal approaches and instead focus on locally driven solutions that improve reliability, reduce costly emergency care, and limit the need for patient travel out of rural areas.

The funding is expected to support improvements in health data systems and connectivity, expand the workforce in underserved regions, and encourage care models that better fit Alaska’s frontier realities.

Federal officials have pointed to Alaska’s award as recognition of the unique challenges faced by rural and remote states and the need for policies that reflect those conditions.

The Alaska Department of Health will oversee implementation of the program in coordination with health care providers, tribal health organizations, and local partners. Additional details on project selection, timelines, and specific investments are expected as the state moves into the implementation phase.