Healthcare Headlines from the Hill: January Edition

Stay ahead of the latest regulatory shifts and healthcare breaking news with Headlines from the Hill.

In this month’s edition you will find:

• Rural Health Transformation Program: CMS awards all 50 States.
• Lifepoint Health and the National Rural Health Association: 2026 priorities.
• Congressional update: House and Senate are in session.

Rural Health Transformation Program: CMS awards all 50 States.

CMS announced that all 50 states will receive first-year awards under the Rural Health Transformation Program (RHTP), a $50 billion initiative established under President Trump’s Working Families Tax Cuts legislation to strengthen and modernize healthcare in rural communities across the country.

In 2026, states will receive first-year awards from CMS averaging $200 million within the range of $147 million to $281 million. As a reminder, CMS is limiting direct payments to hospitals for services to no more than 15% of these funds. The actual amount of funding available to hospitals will vary by state, depending on how applications are structured and what CMS ultimately approves.

This unprecedented federal investment will help states expand access to care in rural communities, strengthen the rural health workforce, modernize rural facilities and technology, and support innovative models that bring high-quality, dependable care closer to home. With this funding, states will implement comprehensive strategies to improve care delivery, support providers and advance new approaches to coordinating healthcare services across rural communities.

The RHTP’s $50 billion in funds will be allocated to approved states over five years, with $10 billion available each year from 2026 through 2030.

Across the country, many states are planning efforts that will:

• • • Bring more care within reach
    • Strengthen and sustain the rural clinical workforce
    • Modernize rural health infrastructure and technology
    • Drive structural efficiency & empowering the community providers
    • Advance innovative care models and payment reform

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Lifepoint Health and the National Rural Health Association: 2026 priorities.

Lifepoint, in close collaboration with the National Rural Health Association (NRHA), continues to advocate for policies that strengthen rural hospitals, protect access to care and help ensure long-term sustainability for rural health systems. During 2025, this partnership helped advance bipartisan solutions across the following core pillars: rural health infrastructure, workforce and opportunity.

2025 Issues and Accomplishments

• • • Elevating rural health
    • Rural Health Transformation Program (RHTP)
    • Protecting rural health funding
    • Strengthening rural hospitals
    • Coverage and payment advocacy
    • Workforce and access wins

2026 Advocacy Priorities

As Congress begins its second session and the Administration implements major reforms, Lifepoint Health and NRHA will focus on the following priorities:

• • • Rural-friendly implementation of H.R. 1
      • • Advocate for CMS implementation of Medicaid and coverage changes that account for rural capacity, workforce shortages and patient access challenges.
        • Prevent unintended consequences that could accelerate rural hospital closures.
    • Oversight and accountability for the Rural Health Transformation Program (RHTP)
      • • Track state-level implementation beginning January 2026.
        • Share best practices, elevate successful models and help ensure RHTP investments reach frontline rural providers.
    • Sustaining rural healthcare infrastructure-- NRHA and Lifepoint Health urge Congress to:
      • • Modernize Medicare payment policies for rural hospitals, including wage index reform and sequestration relief.
        • End reliance on short-term payment extenders by making key rural designations permanent or long-term.
        • Strengthen rural hospital technical assistance and stabilization programs.
        • Improve the Rural Emergency Hospital (REH) designation to enhance sustainability.
        • Expand rural GME and residency pathways.
        • Improve preparedness for obstetric emergencies amid rural maternity unit closures.
    • Preventing harmful payment policies
      • • Oppose expansion of site-neutral payment policies, which would disproportionately destabilize rural hospitals reliant on outpatient services.
        • Push back against Medicaid financing reductions that threaten rural provider viability.
    • Strengthening state-level advocacy
      • • Support State Rural Health Associations with state legislative sessions in 2026
        • Advance shared state priorities including Medicaid payment programs / reimbursement, workforce, facility preservation, EMS, telehealth, and behavioral, maternal, and oral health coverage.

Lifepoint Health’s collaboration with NRHA remains critical to advancing bipartisan solutions that protect rural access to care. Building on significant 2025 achievements—including historic federal investment, funding protection, and regulatory relief—2026 will be pivotal in ensuring these policies translate into lasting improvements for rural hospitals, patients, and communities.

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Congressional update: House and Senate are in session.

The House and Senate are both in session this week. With less than two weeks left before government funding runs out on January 30, Congress remains focused on appropriations. The Senate will hold an initial procedural vote early this week on a minibus spending bill that passed the House last week. Senate and House negotiators released the next funding package which is also expected to hit the floor this week.

Lawmakers have just three weeks to pass or secure extensions for the outstanding bills to avoid a partial government shutdown. In healthcare, the House passed a three-year extension of the Affordable Care Act (ACA) enhanced Advance Premium Tax Credits (eAPTCs) last week. House passage will continue to add momentum to ongoing negotiations in the Senate, although the bill is unlikely to pass in its current form. President Donald Trump is also expected to meet with 14 health insurance companies in the coming days to pressure them to bring prices down. This comes as executives were also invited to testify before the House Energy and Commerce and Ways and Means committees on January 22, 2026.

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