Virginia rural counties to compete for federal funds for rural health care

Pictured: Secretary Kelly greeting local health care leaders at the Eastern Shore Chamber of Commerce Building in Melfa.

Virginia is gearing up to compete for up to a billion dollars in new federal funding aimed at improving rural health care. Governor Glenn Youngkin says the Commonwealth is launching a stakeholder engagement process to shape its plan.

Congress recently passed the “One Big Beautiful Bill Act,” creating the Rural Health Transformation Program. It sets aside $50 billion nationwide between 2026 and 2030. Virginia could receive as much as $500 million directly, plus another half-billion through competitive grants.

Governor Youngkin says the investment could be a game changer.“This program gives Virginia a historic opportunity to expand access, support providers, and deliver better outcomes for rural families.”

The funding can be used in areas like chronic disease prevention, recruiting and keeping health workers, improving mental health and substance use treatment, and bringing new technology into rural hospitals and clinics.

Secretary of Health and Human Resources Janet Vestal Kelly kicked off the engagement process in August, meeting with providers and community leaders. This included a trip to the Eastern Shore this week to meet with members of the local healthcare community, including representatives from Eastern Shore Rural Health, Riverside, the Eastern Shore Community Services Board and more. 

Now, state officials are asking rural residents and organizations to share input and proposals by September 15th. Those ideas will help shape Virginia’s application to the federal government, due in November.

If approved, Virginia could see major new investments to strengthen health care access in rural communities over the next five years.