How Starr County is now competing with 150 rural Texas hospitals for federal grants

Inside the lobby of Starr County Memorial Hospital on Monday afternoon, more than two dozen local leaders pitched state health department officials about what’s possible if the county were awarded a slice of new federal funding meant for rural health care transformation. 

It’s the first stop for Texas Department of Health and Human Services officials who are expected to crisscross the state for the rest of the week, gathering information for its application due next month. 

State health officials have been working quickly to conduct a rural community listening tour before they submit a statewide application to the Trump Administration for a potential slice of $50 billion set aside in the Big Beautiful Bill. The state is already wading through more than 300 responses, mostly from health care providers, about potential funding ideas. 

A lot of money on the line, but a tight turnaround 

The federal spending bill was passed in July, but state guidelines were not released until Sept. 15, and the deadline for the state’s application is on Nov. 5 – just one day after Election Day. State awards are expected to be announced by the federal government in December 2025.