This bill authorizes the federal government to award grants to rural hospitals to help them stay financially stable and maintain service to their communities. Eligible rural hospitals—defined as those located at least 15 miles from the nearest hospital and at least 20 miles from urbanized areas—can receive up to $5 million over any five-year period to fund facility upgrades, equipment repairs, and operational costs like payroll and debt payments, though grants cannot fund executive salaries. The bill appropriates up to $500 million in total funding for the grant program beginning in fiscal year 2026, and requires the Health and Human Services Secretary to report to Congress within 18 months on how the program is improving hospitals' financial health and rural residents' access to care. The grants are intended to supplement, not replace, other existing federal, state, local, and tribal funding that rural hospitals may receive.
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