Rural Texas Strong Initiative 6 (Part 1): Infrastructure and Capital Investments for Rural Texas Grant Program

The Texas Health and Human Services Commission (HHSC) is a state-level agency responsible for administering health and human services programs across Texas, including initiatives funded through federal partnerships. Under its broader Rural Health Transformation Program, HHSC has released the Rural Texas Strong Initiative 6 (Part 1): Infrastructure and Capital Investments for Rural Texas. This funding opportunity is designed to address long-standing infrastructure challenges in rural healthcare systems by providing capital investment resources to eligible healthcare providers operating in rural communities across the state. The primary purpose of this program is to strengthen and modernize rural healthcare delivery systems by funding projects that improve infrastructure, upgrade facilities, and procure essential medical equipment. Rural providers often face aging infrastructure, deferred maintenance, and limited access to capital, which can reduce operational efficiency and hinder access to care. This initiative directly addresses these issues by supporting targeted investments that enhance access to healthcare services, improve quality of care, and ensure long-term sustainability in underserved rural areas. Funding under this opportunity supports a wide range of capital-related activities. Eligible uses include the purchase or replacement of medical equipment, renovation and modernization of existing facilities, infrastructure improvements to expand access to care such as telehealth spaces or mobile units, emergency preparedness upgrades including backup power systems, and workforce-related infrastructure such as training spaces or staff housing. However, the program imposes strict limitations, including prohibitions on new construction, general IT equipment without approval, debt payments, and general operating expenses. All funded activities must directly support healthcare delivery and align with federal and state cost principles. The total funding available for this initiative is approximately 70.4 million dollars, with up to 75 awards anticipated. Individual awards range from a minimum of 200,000 dollars to a maximum of 2,000,000 dollars, subject to a cap of 25 percent of the appraised value of the applicant’s facility. A portion of funding, totaling 20 million dollars, is specifically prioritized for providers serving individuals with intellectual and developmental disabilities (IDD). No cost-sharing or matching funds are required, making the program more accessible to resource-constrained rural providers. Eligible applicants include a broad range of licensed or certified healthcare providers located in rural Texas counties with populations of 68,750 or fewer, or those classified as rural hospitals. This includes hospitals, clinics, behavioral health providers, substance use disorder programs, emergency medical services, pharmacies, public health offices, and specialized providers serving populations such as individuals with developmental disabilities. Applicants must demonstrate legal authority to operate, maintain good standing with regulatory bodies, and meet all submission requirements, including documentation of facility valuation and detailed project proposals. Applications must be submitted through the HHSC Grants Management System (GMS) portal and include multiple required components such as an executive summary, project narrative, work plan, sustainability plan, budget, and supporting cost documentation. The evaluation process includes compliance screening followed by scoring based on need indicators, applicant type, and project type. HHSC may also consider geographic distribution, sustainability, and alignment with state priorities during final selection. The application deadline is June 1, 2026, with anticipated award announcements in September 2026 and project start no later than September 30, 2026. Funded projects must be completed by September 30, 2028, with ongoing reporting and compliance requirements throughout the grant term.

Ensure complete documentation including valuation and cost estimates; align project clearly with eligible activities; demonstrate strong need using rural health data; prioritize compliance with submission requirements; clearly link infrastructure improvements to healthcare access outcomes