Health and Human Services Provides $128M to Rural Hospitals and Nursing Facilities

The Texas Health and Human Services Commission (HHSC) is providing $128 million in federal American Rescue Plan Act funding to rural hospitals and nursing facilities to support healthcare providers during the COVID-19 pandemic. Funds for the grant programs were authorized as part of Senate Bill 8 during the Third Special Session. The direct grant funds will pay for critical staffing needs in rural hospitals and in nursing facilities throughout the state.

“This funding will provide vital support to rural hospitals, nursing facilities and other healthcare providers across the state who continue working tirelessly to combat COVID-19,” said Gov. Greg Abbott. “We are grateful for the continued efforts of our health care professionals who compassionately serve their fellow Texans.”

HHSC is distributing approximately $90 million to Texas nursing facilities with an active license as of November 8, 2021 under the Nursing Facility COVID-19 in Healthcare Relief Grant program. Each eligible facility will receive $75,000. The grant can be used for critical staffing needs such as bonuses and employing contracted staff.

The agency is also distributing approximately $38 million or $250,000 to each eligible rural hospital under the Rural Hospital COVID-19 in Healthcare Relief Grant program. The funds are discretionary and can be used by rural hospitals to support staffing, infrastructure or revenue losses related to the pandemic.

HHSC will administer grant agreements to the legally authorized representatives of the approximately 1,200 eligible nursing facilities and approximately 150 eligible rural hospitals in January 2022 and the facilities will have 15 business days to sign the agreement. Six months after the award, grantees must submit documentation to HHSC regarding how they used the funds.

“Healthcare providers have worked tirelessly to respond to the COVID-19 pandemic and these grant programs will help them fill critical gaps in their workforce as they continue to serve vulnerable Texans,” said Trey Wood, HHSC chief financial officer.