Boiler Bay Beacon
Oregon has secured $197.3 million in initial federal funding for rural healthcare in 2026, placing it close to the national average in a $10 billion nationwide allocation that emphasizes equitable distribution across all 50 states.
The awards, announced Dec. 29, 2025, by the U.S. Centers for Medicare and Medicaid Services, stem from the Rural Health Transformation Program under the July 2025 federal budget reconciliation bill (H.R. 1). Half of the funding is divided equally among states, providing a base of about $100 million each, while the other half adjusts for rural population, health system needs, state policies, and proposed project impact. This results in awards ranging from $147.3 million for New Jersey to $281.3 million for Texas, with an average of $200 million per state.
Oregon’s share falls $2.7 million below that average, comparable to amounts for North Dakota ($198.9 million) and Pennsylvania ($193.3 million). Larger rural states like Texas and Alaska received more due to population-based adjustments, while smaller or less rural ones like New Jersey and Connecticut got less. The program could provide up to $50 billion total through 2030, with annual reviews based on progress.
Administered by the Oregon Health Authority (OHA), the funds will support rural access, chronic disease programs, workforce growth, and technology in areas like Lincoln County. This coastal region, home to about 50,000 residents spread across remote communities, relies heavily on Samaritan Health Services for care.
Samaritan runs the 25-bed Samaritan North Lincoln Hospital in Lincoln City—a critical access and Level IV trauma facility—and the 25-bed Samaritan Pacific Communities Hospital in Newport, serving Depoe Bay, Toledo, Waldport, and Yachats. The nonprofit has reported financial strains from cost increases and reimbursement gaps.
On Oct. 22, 2025, Samaritan’s board approved an affiliation with Tacoma-based MultiCare Health System, expected to close mid-2026 pending approvals. The deal preserves Samaritan’s name and local oversight, with MultiCare pledging investments to upgrade facilities, expand telehealth, and boost behavioral health—complementing the federal funds’ focus on sustainability.
For Lincoln County citizens, the combined developments could ease access challenges, such as long drives to specialists, by funding quick-start projects like workforce recruitment or data tools. OHA plans Immediate Impact Awards early in 2026, followed by competitive grants.
Details and applications are on OHA’s Rural Health Transformation Program webpage. The funding is fully from CMS.
