Charleston, W.Va. – West Virginia Governor Patrick Morrisey is urging state lawmakers to authorize spending for the state’s Rural Health Transformation Program, warning that the success of the federally funded initiative is at risk without immediate legislative action.
The program, enabled by funding from the federal Rural Health Transformation Program established by the Centers for Medicare and Medicaid Services (CMS), aims to improve healthcare access and outcomes in rural West Virginia. The federal program runs from fiscal year 2026 to fiscal year 2030 and is providing West Virginia with at least $500 million, potentially more, to revolutionize rural healthcare.
Governor Morrisey unveiled the state’s application for the program in December 2025, outlining a plan to address what he describes as the root cause of West Virginia’s economic struggles: poor health hindering workforce participation. West Virginia currently has the nation’s lowest workforce participation rate, with illness and disability cited as the primary reason residents are not employed.
The proposed plan focuses on seven key initiatives, including expanded telehealth services, improved transportation access to healthcare facilities, workforce recruitment for the healthcare sector and the implementation of technology innovations. A significant emphasis is also placed on preventative care, with plans for “food-as-medicine” programs and workplace wellness initiatives.
“Better healthcare outcomes leads to improved productivity. That leads to more people in our workforce. That leads to a better standard of living and a stronger economy,” Morrisey said, describing the anticipated cascading benefits of the program.
Yet, the potential benefits of the Rural Health Transformation Program are occurring as West Virginia faces projected cuts to federal Medicaid spending. The West Virginia Center on Budget and Policy estimates the state could lose up to $1 billion annually in federal healthcare funding, a figure that significantly exceeds the funding provided by the transformation program.
Morrisey argues that the program will ultimately reduce the state’s reliance on federal healthcare dollars by improving the health of West Virginians and enabling them to transition from Medicaid to commercial health insurance. He believes that a healthier workforce will lead to reduced healthcare expenditures in the long term.
The Governor is now awaiting legislative authorization to begin allocating the funds, with the fate of the program hinging on the lawmakers’ decision. As of Wednesday, February 25, 2026, the West Virginia legislature has not yet authorized the spending.
