North Carolina launches $20M Rural Health Innovation Fund
North Carolina's Department of Health and Human Services and Department of Information Technology announced the launch of the Rural Health Innovation Fund, a statewide investment fund that will distribute roughly $20 million per year for up to five years. The fund is aimed at helping rural providers modernize infrastructure and adopt digital tools.
According to the announcement, first-year eligibility is limited to primary care providers, federally qualified health centers, community health centers and safety net providers meeting certain federal health center requirements. Applicants must show how they serve rural residents even if their county is not designated rural. Supported projects can include telehealth expansion, AI-enabled clinical decision support, EHR upgrades and cybersecurity enhancements.
The application window closes Nov. 16, 2026, with awards anticipated in January 2027. Funding is reimbursement-based, and projects must be completed by July 30, 2027. The fund is part of North Carolina's Rural Health Transformation Program; the state received more than $213 million from CMS in December 2025 for the program's first year and remains eligible for additional funding over five years.
The announcement also notes the state faces funding losses under federal reconciliation law H.R. 1, including a reported loss of nearly $50 billion in federal Medicaid funds for North Carolina over the next decade and cuts to hospital funding.