Rural Hospital Stabilization Act

This bill creates a pilot program to award grants to rural hospitals and technical assistance providers to help rural hospitals sustain or expand services. It amends the Social Security Act to add a new paragraph under Section 1820(g).

Sec. 2, Rural Hospital Stabilization Pilot Program: Starting January 1, 2026, the Secretary of Health and Human Services, through the Office of Rural Health Policy, will award grants to rural hospitals (including critical access and rural emergency hospitals) to help them ensure local access to services, and to experienced technical assistance providers to help those hospitals plan and use grant funds. In awarding grants, the Secretary must consider the hospital's average daily census, distance to the nearest hospital, financial circumstances from its Medicare cost report, risk of closure, and risk of reducing or stopping a class of services. Hospitals may use grant money for minor renovations, training, recruiting or hiring staff, supplementing staff compensation, and acquiring or refurbishing equipment. Technical assistance providers must use funds to help hospitals apply for grants and use awarded funds properly. The Secretary must report to Congress by January 1, 2029, and again two years later, detailing the names and locations of grant recipients, how funds were used, and analyses of financial circumstances and services offered before and after the grant. Up to $20 million per year is authorized from the Federal Hospital Insurance Trust Fund for fiscal years 2026 through 2029.