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Notice2026-18425

Notice of Supplemental Funding, Medicare Rural Hospital Flexibility Program

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 10, 2026

Issuing agencies

Health and Human Services DepartmentHealth Resources and Services Administration

Abstract

HRSA is providing additional fiscal year 2026 funding under the Medicare Rural Hospital Flexibility (Flex) Program using the program's established funding methodology, including a baseline increase for all recipients and an additional adjustment for states with newly designated Critical Access Hospitals (CAHs). This funding will support state efforts to strengthen CAHs, improve quality and performance, and sustain access to essential rural health care services.

Full Text

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<title>Federal Register, Volume 91 Issue 174 (Thursday, September 10, 2026)</title>
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[Federal Register Volume 91, Number 174 (Thursday, September 10, 2026)]
[Notices]
[Pages 57619-57620]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18425]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Notice of Supplemental Funding, Medicare Rural Hospital 
Flexibility Program

AGENCY: Health Resources and Services Administration (HRSA), Department 
of Health and Human Services.

ACTION: Notice of supplemental funding.

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SUMMARY: HRSA is providing additional fiscal year 2026 funding under 
the Medicare Rural Hospital Flexibility (Flex) Program using the 
program's established funding methodology, including a baseline 
increase for all recipients and an additional adjustment for states 
with newly designated Critical Access Hospitals (CAHs). This funding 
will support state efforts to strengthen CAHs, improve quality and 
performance, and sustain access to essential rural health care 
services.

FOR FURTHER INFORMATION CONTACT: Sheena Johnson, Deputy Division 
Director, Hospital State Division, Federal Office of Rural Health 
Policy, HRSA, at <a href="/cdn-cgi/l/email-protection#2251484d4a4c514d4c624a5051430c454d54"><span class="__cf_email__" data-cfemail="1a69707572746975745a7268697b347d756c">[email&#160;protected]</span></a> and (872) 271-6370.

SUPPLEMENTARY INFORMATION: 
    Intended Recipients of the Award: 2 Flex Program Recipients.
    Amount of Non-competitive awards: 2 awards totaling $620,742.
    Project Period: September 1, 2026, to August 31, 2027.
    Assistance Listing Number: 93.241.
    Award Instrument: Cooperative Agreements.
    E3.Authority:
     42 U.S.C. 1395i-4(g)(1)-(2) (<a href="https://www.ssa.gov/OP_Home/ssact/title18/1820.htm">https://www.ssa.gov/OP_Home/ssact/title18/1820.htm</a>).

                         Table 1--Recipients With Funding Increases Exceeding 25 Percent
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                                                                                                         Award
              Grant number                     Award recipient name                  State              amount
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U2WRH33293.............................  Alabama Department of Public     AL........................    $146,403
                                          Health.

[[Page 57620]]

 
U2WRH33313.............................  Texas Department of Agriculture  TX........................     474,339
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    Justification: HRSA received increased funding in the Consolidated 
Appropriations Act, 2026, (<a href="https://www.govinfo.gov/content/pkg/PLAW-119publ75/pdf/PLAW-119publ75.pdf">https://www.govinfo.gov/content/pkg/PLAW-119publ75/pdf/PLAW-119publ75.pdf</a>), H.R. 7148, for the Medicare Rural 
Hospital Flexibility Program. The Flex Program supports states in 
strengthening CAHs, improving quality and performance, supporting 
financial and operational improvement activities, and sustaining access 
to essential rural health care services. For fiscal year 2026, HRSA 
will apply a 2.5 percent funding increase to all 45 Flex Program 
recipients and an additional increase of 5 percent for each newly 
designated CAH in a state. This approach provides all Flex recipients 
with a baseline increase while directing additional resources to states 
with expanded program responsibilities due to CAH growth.
    As a result of this increase, the two recipients listed in Table 1 
will receive additional funding due to the number of newly designated 
CAHs in their states. The additional funds will provide additional 
support to strengthen CAHs, improve quality and performance, support 
financial and operational improvement activities, and sustain access to 
essential health care services in rural communities.

Thomas J. Engels,
Administrator.
[FR Doc. 2026-18425 Filed 9-9-26; 8:45 am]
BILLING CODE 4165-15-P


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Indexed from Federal Register on September 10, 2026.

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