Dr. Mehmet Oz told Newsmax on Tuesday that the Trump administration is making the largest federal investment ever in rural healthcare, a $50 billion initiative he described as a necessary restructuring of a system that has left tens of millions of Americans with limited access to care based on where they live.
On "American Agenda," Oz, administrator of the Centers for Medicare & Medicaid Services (CMS), outlined the goals of the Rural Health Transformation Program, which will distribute funding to all 50 states through his agency.
CMS said the program was established under President Donald Trump's Working Families Tax Cut legislation and will begin issuing first-year awards in 2026, averaging about $200 million per state.
The funding is aimed at expanding access to care, strengthening the rural health workforce, modernizing care centers, and supporting new delivery models.
Oz said rural communities have steadily fallen behind in health outcomes, arguing that location has become a determining factor in life expectancy.
"That's something that's really been necessary, needed, essential to the well-being of our nation. We all have to have a fair chance at health," Oz said, adding that rural areas have "fallen further and further behind."
He said the $50 billion investment represents a 50% increase in Medicaid spending on rural healthcare and stressed that the funding is not intended as a stopgap measure.
"It's not to pay the bills," Oz said. "We need to actually right-size the system.
"We need to fundamentally restructure how we offer care in rural parts of this nation."
Oz said at least 60 million Americans lack access to services commonly available in urban areas. He said the program is designed to encourage states to compete for funding by proposing reforms that remove barriers to care, including limits on telemedicine.
"But the big news here is we're getting the states to compete," he said. "We're getting the states to all go after this kitty of money with the best ideas they have, and break down the barriers that have held back access to health — for example, telemedicine."
"If you can get doctors from the big city to talk to folks in rural parts of the state, why not make it easy?" he added.
Oz also addressed concerns about a new, potentially severe strain of influenza A that has driven rising cases and hospitalizations in parts of the country, including New York.
"Flu is always a problem," Oz said, noting that vaccines do not always work as effectively as hoped.
He encouraged Americans to focus on basic health measures to reduce risk, including adequate sleep, nutrition, physical activity, and vitamin D in the winter months.
"The most important tool of all is sleep," Oz said, adding that holiday schedules and fatigue can weaken the immune system and increase vulnerability during flu season.
New York state recently set a record with 71,123 flu cases, with a 63% increase in hospitalizations.
State officials say they are closely monitoring hospital capacity.
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Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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