Mississippi Creates Office to Manage $206 Million in Rural Health Funds
Gov. Tate Reeves announced Wednesday the creation of an office dedicated to overseeing the distribution of nearly $206 million in federal funds aimed at improving rural healthcare in Mississippi. The office will be led by certified public accountant Richard Grimes and will be overseen by the governor, according to a news release.
Reeves also unveiled a new website intended to provide the public with transparent information about the state’s initiatives, funding opportunities, and project progress. “This is a massive step forward for healthcare in Mississippi,” Reeves said in the release. “By establishing a dedicated office and launching this website, we are putting the structure and transparency in place to deliver real, lasting improvements for our rural communities.”
The funds were awarded in December as part of the federal Rural Health Transformation Program, which allocates up to $50 billion over five years to support rural healthcare. The program aims to help rural hospitals facing financial strain due to federal spending cuts passed last summer by Congress. Mississippi led the state’s application process for the funds and is now responsible for their distribution.
Mississippi’s plan includes a statewide rural health assessment, efforts to coordinate care, workforce development, a health information exchange, expanded telehealth services, and infrastructure improvements. Some lawmakers have criticized the administration’s handling of the funds, citing a lack of transparency and limited input from legislators. Senate Public Health Chairman Hob Bryan, a Democrat from Amory, previously told Mississippi Today that only those with direct invitations from the governor have input.
In March, lawmakers passed a bill requiring oversight and reporting of the program’s spending, but Reeves vetoed the measure, arguing it could delay fund distribution and threaten the state’s access to the money. The veto was not overridden. Reeves stated in Wednesday’s release that the federal Centers for Medicare and Medicaid Services is reviewing Mississippi’s budget, which has yet to be approved. The state’s website indicates that application details and funding opportunities will be posted once finalized. The federal government requires the funds to be spent by September 2027, or they will be redistributed to other states, according to CMS.
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