U.S. Department of Agriculture (USDA) Secretary Tom Vilsack last week announced the establishment of a program under President Biden’s American Rescue Plan to expand rural hospitals and providers’ access to COVID-19 vaccines, testing, and supplies, while helping rural health care providers stay financially solvent in the long-term. 

The initial awards of the Emergency Rural Health Care Grants total $43 million and will benefit 2.2 million people (PDF, 290 KB) who live and work in rural America. Awardees include 93 rural health care organizations and community groups across 22 states.

This announcement is part of the Administration’s Rural Infrastructure Tour, a multi-faceted outreach effort involving cabinet and sub-cabinet officials across federal agencies as they travel to and learn from rural communities across the country.

“Under the leadership of President Biden and Vice President Harris, USDA mobilized our staff and resources to respond in record time to improve the long-term viability of rural health care providers and services across this nation,” Vilsack said. “USDA used an all-hands-on-deck approach to create the Emergency Rural Health Care Grants program to address a variety of immediate health care needs and services in rural communities. The American Rescue Plan Act and this program are examples of the government’s ability to respond quickly to ensure every person and family has access to high-quality health care no matter their zip code.”

These funds were available through the American Rescue Plan Act. Within months after the Act’s passage, USDA responded quickly by making this funding available to ensure the long-term availability of rural health care services. In total, the program will use up to $475 million in grants provided by President Biden’s American Rescue Plan to expand rural hospitals and providers. Additional awards will be announced in the coming months.

The grants USDA is awarding will help rural hospitals and health care providers implement telehealth and nutrition assistance programs, increase staffing to administer COVID-19 vaccines and testing, build or renovate facilities and purchase medical supplies.

In Minnesota, Appleton Area Health will use a $174,300 grant to upgrade telehealth and telemedicine capabilities and replace hospital equipment. Funds will be used to purchase and install 28 flat panel television monitors with cameras for clinic exam rooms and hospital patient rooms. This project will also help to purchase and install an air conditioning unit for the laboratory, four new hospital beds and five powered air-purifying respirators. This project will benefit more than 1,400 people in the city of Appleton and rural communities in Swift and Lac Qui Parle counties.

The investments announced last week will expand health care services in Florida, Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Montana, North Carolina, New Hampshire, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Virginia, Washington, West Virginia and Wyoming.

USDA will announce additional awardees for Emergency Rural Health Care Grants in the coming weeks and months, it was stated.

Background: Congress passed the American Rescue Plan Act in March 2021 to deliver immediate economic relief to people impacted by the pandemic.

In August 2021, USDA made the Emergency Rural Health Care Grants available through the American Rescue Plan to help rural health care facilities, tribes and communities expand access to health care services and nutrition assistance.

The assistance is helping provide immediate relief to support rural hospitals, health care clinics and local communities. USDA is administering the funds through Rural Development’s Community Facilities Program.