For Immediate Release: September 10, 2026
Media Contact:
Communication Office │ Department of Health
802-863-7280 │ [email protected]
Federal Rural Health Transformation Funds to Support the Rural Workforce
Vermont partners with VSAC to award $9 million in Rural Health Transformation funding to students training in healthcare professions
WATERBURY, VT — The Vermont Department of Health has awarded $9 million to the Vermont Student Assistance Corporation (VSAC) to provide tuition benefits to health care professionals – Vermont’s first project from the $195 million awarded to the state through federal Rural Health Transformation funding.
The new Rural Health Transformation tuition benefit program will support people pursuing education in eligible health-related fields who are committed to serving rural Vermont communities after they complete their degree. Areas include nursing, dentistry, mental health, and emergency medical services, among other fields.
The program will increase the number of health professionals serving rural Vermonters and keep those providers working in the state by requiring a commitment of at least five years.
“We look forward to helping address the growing shortages across Vermont’s rural health workforce,” said Secretary of the Agency of Human Services Jenney Samuelson. “As more of these projects roll out, we expect to see better access to care and services that can be sustained in rural Vermont.”
A recent Health Department analysis found that tuition benefit award programs targeted to recruit and retain providers in underserved areas or hard-to-fill positions keep those providers working in Vermont. In 2022, over half of physicians, two-thirds of physician assistants, almost two-thirds of registered nurses, three-fourths of dentists, and almost 80% of advance practice registered nurses who received an Educational Loan Award in 2012 were still actively practicing in Vermont 10 years later. Ensuring that we focus those benefits on our rural practices strengthens the system for rural Vermonters.
The new program has been in high demand from people pursuing health careers, and all the funding for academic year 2026-2027 has already been awarded, according to VSAC. Applications for the 2027-2028 academic year will open October 1, 2026.
“Providing tuition support for students to attend school changes lives and strengthens communities,” said Patrick Leduc, Vice President and Chief Operating Officer at VSAC. “This partnership with the state is helping more students become the nurses, techs, and mental health counselors rural Vermont urgently needs.”
“The Trump Administration’s Rural Health Transformation Program is helping states like Vermont develop innovative, locally driven solutions to improve rural Americans’ access to high-quality care," said CMS Administrator Dr. Mehmet Oz. "These first grant awards demonstrate how this historic investment is empowering rural communities to strengthen their health systems, put patients first, and bring better care closer to home.”
# # #
About the Rural Health Transformation Program
Vermont’s Rural Health Transformation (RHT) program is a five-year federal funding initiative designed to promote bold, innovative ideas that make care more accessible, higher quality, and better tailored to meet the needs of rural communities. The RHT program is funded by the Centers for Medicare and Medicaid Services (CMS). Vermont’s Year 1 award is $195 million.
This project is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (HHS) as part of a financial assistance award totaling $195,053,740.44 with 100 percent funded by CMS/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CMS, HHS, or the U.S. Government.
To learn more about Vermont’s Rural Health Transformation Program, visit: healthcarereform.vermont.gov/hr1rural-health-transformation-fund.
About the Department of Health
We have been the state's public health agency for 140 years, working every day to protect and promote the health of Vermonters.
Visit HealthVermont.gov ─ Join us @HealthVermont on Facebook, Instagram, YouTube and WhatsApp.
Translated Information – Print, video and audio resources are translated into many of the languages used in Vermont. Visit HealthVermont.gov/Translations for searchable tables of documents in each of the nine languages – including about preventing illness, healthy homes, and staying safe and healthy during extreme events like storms, power outages, hurricanes, and flooding.