N.J. is applying for federal grant money to expand health care options in rural areas

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New Jersey will soon apply for new federal funding to support rural health care.

State Human Services Commissioner Sarah Adelman said the federal Centers for Medicare and Medicaid Services’ Rural Health Transformation Program is a one-time $50 billion fund designed to allow states to strengthen health care services in rural areas by improving access, quality and outcomes..

“They’re looking for states to put forward applications that are focused on promoting innovation and strategic partnerships, creating infrastructure development across the health system and making investments in expanding workforce,” she said.

If the application is successful, the Garden State could receive up to $1 billion in grant money over the next five years.

Why it’s important

Adelman said this funding is important because the One Big Beautiful Act signed by President Donald Trump in July could result in more than 350,000 New Jerseyans losing Medicaid coverage. Another 454,000 could see increased costs for their coverage through GetCoveredNJ.

The Jersey Department of Human Services and the state Health Department have reached out to health care groups and organizations for feedback and ideas to help bolster the application for the federal funding.

“We wanted to make sure we had cross-section discussions from people and organizations all across New Jersey,” she said. “We’re looking for potentially brand-new ideas but we also believe there is existing work in the state that can be expanded or built upon.

New Jersey Health Department Assistant Commissioner Nashon Hornsby said expanding community partnerships is a key element to improving rural health.

He said Jersey is the most densely populated state in the nation, but many areas in the state meet the definition of “rural” that’s defined in the grant application.

“Individuals in these areas may have challenges accessing care because there are fewer providers,” he said. “And there may be higher levels of obesity, diabetes, cancer and cardiovascular disease.”

What the funding will cover

Adelman said states applying for the grant must commit to projects that cover chronic disease prevention, mental health expansion, direct provider payments and workforce recruitment programs that include provider service commitments in the Garden State.

“They’re also looking for projects that emphasize technology-driven solutions, like telehealth expansion,” she said. “They’re also looking for regional strategic partnerships across health care, for example partnerships between hospitals or federally qualified health centers and other community providers.”

Hornsby said another focus of the program includes modernizing data systems to better serve residents in rural areas.

New Jersey Assemblywoman Carol Murphy, chair of the Assembly Health Committee, said RHT program funding is particularly important for South Jersey.

“We have some health care deserts down there,” she said. “We want to make sure that access to health care is still achievable, and we continue treating our most vulnerable patients.”

She called the ongoing federal shutdown very concerning.

“It’s not going to be advantageous for any of us to be able to continue getting health care if we don’t see the budget passed,” she said. “What’s important is to make sure our health care is strong and survives.”

New Jersey’s RHT application must be submitted by Nov. 5, and awards will be decided by Dec. 31, 2025.