Rural Hospital Stabilization Act of 2025

Bill Number

H.R. 3063

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Health

Status

Introduced

Latest Action

2025-04-29: Referred to the House Committee on Energy and Commerce.

Last Updated

2025-12-03T23:26:15Z

AI-Generated Summary

Summary of H.R. 3063: Rural Hospital Stabilization Act of 2025

Purpose

This legislation aims to support the financial and operational stability of rural hospitals by authorizing federal grants. It seeks to prevent closures and ensure continued access to essential healthcare services in remote areas, addressing challenges like high costs and limited resources faced by these facilities.

Key Provisions

• Grant Authority: The Secretary of Health and Human Services (HHS), through the Director of the Office of Rural Health Policy in the Health Resources and Services Administration, can award grants to rural hospitals for two main purposes:
• Projects to acquire, repair, or upgrade hospital systems, facilities, and equipment.
• Financial assistance for operational costs, including payroll (excluding leadership positions) and debt payments.
• Application Process: Eligible rural hospitals must submit applications detailing:
• The specific projects or expenses to be funded.
• How the funding will meet the hospital's financial needs.
• How it will help maintain access to hospital services for rural residents.
• A plan for sustaining these efforts after federal funding ends.
• Any additional information required by HHS.
• Funding Limits: Each rural hospital can receive up to $5 million in total grants over any five-year period.
• Maintenance of Effort Requirement: Grant funds must supplement, not replace, other federal, state, local, or tribal funding for these purposes.
• Reporting: HHS must submit a report to specified congressional committees within 18 months of enactment, covering program activities, outcomes, and impacts on hospital viability and rural healthcare access.
• Definitions:
• Rural hospital: A hospital located at least 15 miles from the nearest other hospital and 20 miles from the nearest urbanized area (as defined by the U.S. Census Bureau); includes both public and private hospitals.
• Hospital leadership position: Defined by HHS regulations (e.g., roles like executives or administrators).
• Funding Authorization: $500 million is authorized for grants in fiscal years starting after September 30, 2025.

Significant Changes to Existing Law

This bill amends the Public Health Service Act (a key federal law governing public health programs) by adding a new section (330A-3). It introduces a dedicated grant program specifically for rural hospitals, which did not previously exist in this form. Prior laws supported rural health through other mechanisms, like general health center grants, but this creates targeted funding for infrastructure and operations without overlapping existing programs.

Potential Impacts

• On Government Agencies: HHS will administer the program, requiring new processes for applications, oversight, and reporting, potentially increasing administrative workload but also expanding rural health policy tools.
• On Citizens: Rural residents, who often face longer travel times for care, could benefit from stabilized local hospitals, reducing barriers to healthcare and improving outcomes in underserved areas. Urban areas are unlikely to be directly affected.
• On International Relations: No direct impacts, as this is a domestic health policy focused on U.S. rural infrastructure.

Main Stakeholders Affected

• Rural Hospitals: Primary beneficiaries, including public and private facilities in remote areas, which may use grants to avoid closures or service reductions.
• Rural Residents and Communities: Gain improved access to essential hospital services, particularly in areas with limited alternatives.
• HHS and Health Resources and Services Administration: Responsible for implementing and managing the grant program.
• Congressional Committees: Involved in oversight (e.g., Energy and Commerce, Agriculture in the House; Health, Education, Labor, and Pensions, Agriculture, Nutrition, and Forestry in the Senate).
• State, Local, and Tribal Governments: May collaborate on sustaining funded projects, as grants cannot replace their existing funds.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill promotes equity in healthcare access under the Public Health Service Act, with clear eligibility criteria to prevent misuse. The "maintenance of effort" clause ensures fiscal responsibility by avoiding duplication of funds. No challenges to federal authority are evident, as it builds on existing HHS grant powers.
• Constitutional: Aligns with Congress's spending power (Article I, Section 8) to promote general welfare through health programs; no apparent First Amendment, due process, or federalism issues.
• Political: Could appeal to bipartisan support for rural issues, potentially influencing future health funding debates. The $500 million authorization may spark discussions on budget priorities, especially amid concerns over rural hospital closures (over 140 since 2010). It emphasizes sustainability plans, encouraging long-term policy focus on rural health disparities without mandating new regulations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Figures, Shomari [D-AL-2]

Cosponsors (15)

Rep. Jack, Brian [R-GA-3], Rep. Sewell, Terri A. [D-AL-7], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Tokuda, Jill N. [D-HI-2], Rep. Rogers, Mike D. [R-AL-3], Rep. Davis, Donald G. [D-NC-1], Rep. Moore, Barry [R-AL-1], Rep. Aderholt, Robert B. [R-AL-4], Rep. Strong, Dale W. [R-AL-5], Rep. Riley, Josh [D-NY-19], Rep. Thompson, Bennie G. [D-MS-2], Rep. Flood, Mike [R-NE-1], Del. Moylan, James C. [R-GU-At Large], Rep. Budzinski, Nikki [D-IL-13], Rep. Goodlander, Maggie [D-NH-2]

Recent Actions

• 2025-04-29: Referred to the House Committee on Energy and Commerce.
• 2025-04-29: Introduced in House
• 2025-04-29: Introduced in House

Bill Versions

• Rural Hospital Stabilization Act of 2025 — issued 2025-04-29 — PDF (4 pages)