Funding Sources for AI in Rural Healthcare Settings

The implementation of AI tools and systems in rural healthcare settings is funded by healthcare organizations as well as a range of federal programs, philanthropic organizations, and private sector partnerships.

Federal Funding and Programs

The federal government is a key funder of AI efforts in rural healthcare, particularly through the Centers for Medicare & Medicaid Services (CMS).

The Rural Health Transformation Program (RHTP) – RHTP is a $50 billion program funded by CMS that aims to strengthen rural healthcare delivery across U.S. states. Program funding is tied to outcomes, specifically, measurable improvements in healthcare access, quality, and care delivery.

Use of AI under RHTP – All 50 states have included plans to use technology under RHTP, with many referencing AI or AI-enabled technologies in their application summaries, such as predictive analytics, AI-supported care coordination or decision support, remote patient monitoring, or AI governance and readiness activities. States frame AI as an emerging capability that is part of their broader strategies under RHTP. This program is expected to facilitate the adoption of emerging technologies in rural communities.

Other Funding and Support

Foundations and other organizations also support AI adoption and workforce support in rural health settings.

Johnson & Johnson Foundation and Google.org – Both entities have invested $10 million in supporting rural healthcare workers in building AI skills. Funding is directed to organizations that support rural health teams in learning AI skills and tools that can strengthen the healthcare workforce.

Microsoft Rural Health Resiliency Program – This program offers technical assistance, rather than funding, to rural hospitals and rural healthcare facilities related to cybersecurity solutions and AI.

See A Guide to Working with Rural Philanthropy for emerging practices to support rural organizations building partnerships with philanthropies.

Resources to Learn More

Advancing Technology Innovation through the Rural Health Transformation Program
Document
Describes how the Centers for Medicare & Medicaid Services (CMS) Rural Health Transformation (RHT) Program supports innovation and AI implementation in rural healthcare settings.
Organization(s): Bipartisan Policy Center
Date: 3/2026