Mississippi Governor Tate Reeves has announced the creation of a new office to oversee the distribution of hundreds of millions of dollars in federal funding aimed at improving rural healthcare. The office will be led by certified public accountant Richard Grimes and overseen by the governor.
The move follows Mississippi's award of nearly $206 million as part of the federal Rural Health Transformation Programme, a $50 billion initiative designed to support rural hospitals affected by federal spending cuts. The funds will be paid over five years and must be spent by September 2027 or be redistributed to other states.
Governor Reeves said the new office and accompanying website would provide transparency and structure. However, some state legislators have criticised the limited role they have played in the process. Senate Public Health Chairman Hob Bryan said that without a personal invitation from the governor, lawmakers have no input.
In March, lawmakers passed an oversight bill requiring spending to be reported to the Legislature, but Reeves vetoed it, arguing it could slow distribution and risk losing up to $1 billion. The veto was not overridden. Reeves’ office maintains that the funding will be subject to federal oversight from the Centers for Medicare and Medicaid Services.
Mississippi’s programme budget is still under review by CMS, and details on how to apply for funding will be published once finalised. The funds must be allocated by 2027, or they will be redistributed to other states.
