Posted 4 February, 2026
The Iowa Department of Health and Human Services (HHS) announced the intent to award more than $78.6 million in funding through two competitive Requests for Proposals (RFPs) as part of the Iowa Healthy Hometowns Project, funded by the Centers for Medicare & Medicaid Services’ Rural Health Transformation Program. Iowa was awarded a total of $209 million for the first year of the federal program and is the first state in the nation to award funding for its project initiatives.
The first grants awarded specifically support the Hometown Connections initiative, part of the state’s Healthy Hometowns Project, which focuses on building partnerships to restructure health care delivery options for rural communities. The grants will fund medical equipment procurement and installation, and support health care workforce recruitment. Additional RFPs for Healthy Hometowns initiatives are forthcoming.
Medical Equipment Procurement and Installation (RFP #PHTHORC26009)
This award supports rural organizations in Iowa to procure and install essential medical equipment, including minor alterations and renovations where necessary. The goal is to introduce new lines of service not currently available in rural regions and strengthen the sustainability of high-quality healthcare delivery. The list of awardees is posted on the Iowa HHS website.
Estimated Total Award Amount: $66,002,161.76
Health Care Workforce Recruitment (RFP #PHTHORC26010)
This award enables rural healthcare organizations to recruit highly skilled providers by offering competitive incentives such as recruitment bonuses, relocation assistance, and other measures to make rural practice attractive and sustainable. Providers will deliver in-person, full-time care in rural Iowa communities. The list of awardees is posted on the Iowa HHS website.
Estimated Total Award Amount: $12,600,000.00
Iowa’s Rural Health Transformation Program, Healthy Hometowns, is supported by the Centers for Medicare and Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $66,002,161.76 and $12,600,000.00 with 100 percent funded by CMS/HHS.
For more information about the Hometown Connections initiative, visit the Iowa Healthy Hometowns Project webpage.