Council would plan grants and loans for rural health care

The council would develop and submit a plan for a rural health care infrastructure program. The North Carolina Rural Healthcare Infrastructure Council must consult the Department of Health and Human Services' Office of Rural Health. The plan must recommend who can apply, which projects may qualify, how awards would be monitored, and how the fund could remain financially sustainable. The General Assembly must approve the plan by an act before the council can put it into effect. The council must submit the plan by July 1, 2027.

The council would administer a fund that can support rural health care projects. Projects must be in North Carolina rural areas. Eligible facilities include those licensed under Chapter 131E or Chapter 122C. The fund may support new projects, repairs, renovations, and other rural health care infrastructure work. Money must first cover debt service backed by the General Fund. Awards cannot begin until the General Assembly approves the program plan by an act. The bill generally takes effect July 1, 2026. The council cannot award assistance until the General Assembly approves the plan.

The bill would transfer the stabilization fund's unrestricted cash and set aside a one-time $1 million payment for a rural health nonprofit's work. The transfer goes to the Rural Healthcare Infrastructure Fund. The $1 million would go through the Department of Health and Human Services' Office of Rural Health to Rural Healthcare Initiative, Inc. The state Department of Health and Human Services would fund a contract with Rural Healthcare Initiative, Inc. for work on sustainable rural care models, cost estimates, and program planning. The transferred cash is appropriated for the fiscal year in which it moves. The transfer takes effect July 1, 2026. The $1 million payment is nonrecurring.

The bill text would repeal the Rural Health Care Stabilization Program, with an exception for the provision recast as the infrastructure fund. The stated repeal covers Article 2 of Chapter 131A except G.S. 131A-32. The exception is G.S. 131A-32, which the bill recasts as the rural health care infrastructure fund provision. The bill generally takes effect July 1, 2026.