A Closer Look at the $50 Billion Rural Health Fund in the New Reconciliation Law

(By Zachary Levinson and Tricia Neuman for The Kaiser Family Foundation Published: Jul 24, 2025)

On July 4, 2025, President Trump signed a budget reconciliation bill into law that includes significant reductions in federal health care spending, large tax cuts, and other changes. The new law will reduce federal Medicaid spending alone by $911 billion over ten years and lead to 10 million more people becoming uninsured by 2034 based on Congressional Budget Office (CBO) estimates. While this legislation was being debated, Members of Congress from both parties raised concerns about the potential impact on rural hospitals, particularly given the ongoing trend of rural hospital closures. In response, and just prior to passage, the Senate added $50 billion in funding for a new “rural health transformation program,” referred to here as the “rural health fund.” Continue reading here…

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