Rural Capital Project Care Gap Closure Grant Program

The Rural Capital Project Care Gap Closure Grant Program is administered by the Mississippi State Department of Health as part of the state’s broader Rural Health Transformation Plan. This initiative is supported through a cooperative agreement with the federal Rural Health Transformation Program and is designed to strengthen healthcare infrastructure and service delivery across rural Mississippi. The program focuses on addressing critical gaps in access to care by investing in capital improvements that enhance the ability of healthcare providers to serve underserved populations. Rural is defined by the state based on population thresholds and density, but applicants are not required to be physically located in rural areas so long as they demonstrate meaningful benefit to rural residents. The primary goal of the program is to provide funding for capital investments that directly improve healthcare access, capacity, and operational efficiency. Eligible uses of funds include facility renovations, service delivery optimization, clinic expansion, and acquisition of equipment that supports improved care delivery. These investments are intended to expand service capacity, reduce travel burdens for rural populations, support rural hospitals including critical access hospitals, and improve operational systems that reduce barriers to care. Projects must align with at least one defined program objective and demonstrate measurable outcomes tied to improving healthcare services in rural communities. There are important restrictions on how funds may be used. The program does not allow expenditures for telehealth, cybersecurity systems, electronic health records, broadband infrastructure, new construction or major building expansion, lobbying, provider payments, demolition, or other prohibited uses defined by federal guidance. Administrative and indirect costs are capped at five percent of the award, and funds must support new or expanded activities rather than replace existing funding. Additionally, salary costs are subject to federal caps, and ongoing operational expenses must include a sustainability plan to ensure long-term viability beyond the grant period. Eligible applicants include a wide range of healthcare providers located in Mississippi or serving rural populations within the state. These include hospitals, physician practices including solo practitioners, rural health clinics, federally qualified health centers, local health departments, tribal healthcare facilities, behavioral health clinics, substance use disorder facilities, dental providers, and licensed long-term care facilities. Applicants may submit multiple applications for separate capital investments. Participation in the statewide Health Information Exchange is required for awardees, and applicants must obtain necessary federal and state identification numbers to receive funding. The application process requires submission through an online portal with all required documentation uploaded at the time of submission, including PDF attachments and a Microsoft Excel budget template. Applications are reviewed first for completeness and responsiveness, and only complete submissions advance to a merit review phase. During merit review, a panel evaluates proposals based on defined criteria including project need, alignment with program objectives, implementation readiness, sustainability, budget appropriateness, and evaluation methods. The scoring framework allocates points across these categories to ensure a comprehensive assessment of each proposal’s impact and feasibility. The funding timeline for the initial program year includes an application opening date in mid-June 2026 and a submission deadline in mid-July 2026. Award announcements are expected by the end of July 2026, with a performance period running from the date of award through July 31, 2027. All funds must be obligated by late October 2026, and expenditures must be completed within the performance period. The program anticipates awarding approximately 20 to 30 grants, with individual awards of up to three million dollars. Future funding rounds may be offered in subsequent years, though funding in one year does not guarantee future awards. Awardees are classified as subrecipients and are responsible for managing their projects in compliance with federal and state regulations, including procurement standards and audit requirements. Funds are distributed on a reimbursement basis, requiring documentation of incurred costs before payment. Subrecipients must maintain detailed records, submit regular financial and progress reports, and comply with monitoring requirements. Quarterly reporting and an annual evaluation report are required to track progress, outcomes, and sustainability. Questions about the program must be submitted via email by the stated deadline, and applicants are prohibited from attempting to influence the selection process outside of official channels.

Align project clearly with program objectives; demonstrate measurable rural impact; provide strong implementation timeline and sustainability plan; ensure budget compliance and readiness