Gov. Katie Hobbs submitted the state’s application in November for $200 million per year through the Rural Health Transformation Program. The revised budget was sent back Jan. 30 to the Centers for Medicare and Medicaid Services to reflect the $167 million annual award instead.

Arizona Governor Katie Hobbs has revised the state's rural health spending plan after receiving less federal funding than expected.
The state will receive $167 million, which is $33 million less than the original $200 million plan.
Workforce development remains the top priority, despite a nearly $10 million cut in its allocation.

Dr. Derksen interviewed about expiring tax credits for ACA plans and declining enrollment.

The Affordable Care Act’s enhanced premium subsidies expired at the end of 2025, affecting the vast majority of enrollees who relied on reduced health insurance costs.

The Trump administration is giving Arizona about two-thirds of what Gov. Katie Hobbs sought in newly available federal aid to help shore up rural health care.

In Arizona alone, more than 400,000 people get health insurance under the Affordable Care Act. With days left before Congress breaks for the holiday, thousands of Arizonans could see their premiums double or even triple in price.

Federal cuts to health care means health centers will have less funding — and less staffing — while trying to serve more uninsured patients.