ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: HHS DPA/SE 7-5-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2233: rural health transformation monies; review

S/E: rural health transformation fund

Sponsor: Representative Blackman, LD 7

Caucus & COW

 

Summary of the Strike-Everything Amendment to HB 2233

Overview

Establishes the Arizona Rural Health Transformation Fund to receive federal monies through the Rural Health Transformation Program (RHTP) and includes public meeting and legislative approval requirements for the expenditure of monies.

History

H.R. 1, also known as the One Big Beautiful Bill, was signed into law on July 4, 2025 and established the Rural Health Transformation Program (H.R. 1).

RHTP funding is $50,000,000 to be allocated to approved states over five fiscal years, with $10,000,000 of funding available each fiscal year (FY), beginning in FY 2026 through FY 2030. 50% of RHTP funds must be distributed equally amongst all approved states and the other 50% must be allocated by the Centers for Medicare and Medicaid Services (CMS) based on several factors including: 1) rural population; 2) proportion of rural health facilities in the state; 3) the situation of certain hospitals in the state; and 4) other factors to be specified by CMS in a Notice of Funding Opportunity (CMS).

The FY 2026 award amount for Arizona is $166,988,956 (CMS).

Provisions

1.   Establishes the Arizona Rural Health Transformation Fund (Fund) to consist of monies received by the state through RHTP. (Sec. 1)

2.   Requires AHCCCS to administer the Fund and states Fund monies are continuously appropriated. (Sec. 1)

3.   Requires AHCCCS, before the executive branch spends any money, to hold three public meetings in each of the largest metropolitan areas in northern, central and southern Arizona to receive input and feedback regarding how the monies should be spent. (Sec. 1)

4.   Directs AHCCCS, after holding the public meetings, to submit an expenditure plan for the RHTP funds to the Joint Legislative Budget Committee for approval. (Sec. 1)

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8.   Initials AG                       HB 2233

9.   1/26/2026  Page 0 Caucus & COW

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