General · Funding Mechanics · 6 min read
What can RHTP funds be spent on? Allowable uses explained
RHTP funds must be directed to three or more approved categories: evidence-based prevention and chronic-disease management; payments to providers for care items or services; consumer-facing, technology-driven chronic-disease solutions; and additional CMS-approved uses that promote sustainable rural access. States choose which categories fit their plan.
The four approved use categories
CMS defines a set of allowable uses and requires each state to spend across at least three of them. This pushes states toward a portfolio strategy rather than a single bet.
- Evidence-based, measurable prevention and chronic-disease management
- Payments to health care providers for items or services specified by CMS
- Consumer-facing, technology-driven solutions for chronic-disease prevention and management
- Additional uses that promote sustainable access to high-quality rural care
What this means in practice
Because measurability is built into the first category and technology into the third, states tend to favor interventions with clear metrics and digital delivery. That creates openings for behavioral health, maternal health, substance-use, and care-coordination programs that can demonstrate outcomes.
Frequently asked questions
- Can funds pay for staff and workforce programs?
- Workforce and access initiatives can qualify under the sustainable-access category, subject to each state's plan and CMS approval.
- Are technology vendors eligible to participate?
- Yes. The technology-driven category explicitly contemplates consumer-facing digital solutions, which often involve vendor partners working with providers.
Figures reflect the CMS Rural Health Transformation Program NOFO and the December 2025 award announcement. RHTP Tracker is an independent resource by Moodr Health and is not affiliated with CMS.