IDHW director: Rural health grant may be ‘economic opportunity’ for small communities

As Idaho prepares to dole out around $186 million in federal rural health grants, state officials are hoping local contractors are ready for the infrastructure projects those grants will fund.

The five-year Rural Health Transformation grant, funded by the “big beautiful” law Congress passed last July, is meant for projects that will improve rural healthcare.

“We had a number of providers say we’re not even up to electrical code, plumbing,” Idaho Department of Health and Welfare Director Juliet Charron said in an interview. “So I also want the construction industry, the electrician groups, plumbers … there’s going to be a lot of need in a lot of construction projects.”

The health agency is launching an awareness campaign this summer to reach out to contractors, chambers of commerce, and industry organizations about these grant opportunities.

In Sandpoint, Bonner General Health needs a new air handler to control humidity in the surgery room, Bonner General Health CEO John Hennessy told the Idaho Capital Sun in May. For certain surgeries, the hospital must cancel operations if the humidity is too high, he said.

Many Idaho hospitals and clinics have been following the grants closely, Charron said, but she’s hoping to spread awareness to other industries that may not have been. She also wants to reach smaller, independent behavioral health and disability service providers that may only be run by one or two people.

The state must award all of its $186 million to eligible projects and programs by Oct. 30, or federal authorities may take the money back and give it to other states. The state’s first report to the federal Centers for Medicare and Medicaid Services, which oversees the grant, is due Aug. 30. That report will help determine how much funding Idaho will receive next year.

Idaho was awarded the money in December, but needed the Legislature’s approval to spend any funds. State lawmakers during the legislative session debated different avenues for oversight of the money before approving a committee through a budget bill at the end of March.

The legislative oversight committee met for the first time April 22. The state posted the first three subgrants in the program in June.

Potential projects that may not be top of mind include remodeling spaces in public areas such as libraries or creating kiosks that are private enough for telehealth appointments, asbestos abatement, and bringing old facilities into electrical code compliance, Charron said.

“It’s really more than healthcare,” Charron said. “I think it’s going to be an economic opportunity for some of our smaller communities.”

Anyone with questions or who is interested in involvement in rural health opportunities may email [email protected].