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New Mexico offers grants to fill gaps in rural healthcare

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Rural communities and tribal governments have until July 27 to apply for a new Rural Health Care Fund in New Mexico. The fund is tied to a larger federal fund aimed at offsetting Medicaid cuts.

by Roz Brown for Public News Service

Rural people often know what would boost local health care services but their communities lack the funds to follow through. Now, New Mexico's Health Care Authority is stepping in to fill the gaps.

Applications are being accepted for the state's new Rural Health Innovation Fund, a $47 million grant program.

Elisa Wrede, acting director of rural health for the authority, said money allocated will focus on expanding access to care in underserved rural, frontier and tribal areas.

"Our goal is really to find and fund as many strong community-led projects as we possibly can and also be sustainable once the money's gone in the long term," Wrede explained.

In addition to tribal governments, Wrede noted eligible applicants include hospitals, community organizations, local governments, academic institutions and regional partnerships. Applications are being accepted through July 27.

The new fund is tied to a larger federal initiative congressional Republicans created alongside long-term Medicaid cuts. There has been debate about whether the added support will offset the cuts.

About a quarter of New Mexico residents live in rural areas and many face significant socioeconomic challenges. Wrede pointed out an exodus of healthcare workers during the pandemic required the agency to reorganize in order to serve the most people.

"It really impacted our rural communities a lot," Wrede recounted. "Really finding pathways to train people in local communities that want to do that work or help folks who are already in healthcare in a rural community expand their practice."

Proposed projects could include new or expanded healthcare services, along with technology or equipment upgrades to make care more accessible. Other opportunities include regional partnership and efforts to improve patient navigation.

The "Scorecard on State Health System Performance" prepared by the Commonwealth Fund ranked New Mexico 31st among states in 2025.