Vermont Just Got $11.7 Million to Fix Its Rural Nursing Home Crisis. Here Is Where the Money Is Going.

Montpelier, Vermont — The Green Mountain State is putting serious money behind its promise to shore up long-term care in rural communities, with $11.7 million in federal Rural Health Transformation funds now flowing to nursing homes, workforce training, and tuition assistance for healthcare students.

The funding, announced this week by the Centers for Medicare & Medicaid Services, represents the first slice of a $195 million federal award Vermont received at the end of 2025. State officials say the money cannot come soon enough.

A Workforce Fix with Strings Attached

The lion’s share of this initial round — $9 million — is headed to the Vermont Student Assistance Corporation. The funds will cover tuition for students pursuing careers in nursing, dentistry, mental health, and emergency medical services. There is a catch: recipients must commit to working in Vermont’s underserved rural communities for at least five years after graduation.

Around 600 students are already receiving these tuition benefits this academic year, according to Patrick Leduc, Vice President at the Vermont Student Assistance Corporation. The program previously relied on state budget allocations, but lawmakers struck it from this year’s approved budget in anticipation of the federal funds.

Nursing Homes Get Direct Support

The remaining $2.7 million is going straight to three nursing homes and four teaching institutions to expand training for Licensed Nursing Assistants.

The Pines at Rutland Center for Nursing and Rehabilitation will use its allocation to purchase new ventilators. St. Johnsbury Center for Living and Rehabilitation is building out a new ventilator unit. In Springfield, the Springfield Center for Living and Rehabilitation is creating an on-site “dialysis den” so residents no longer need to travel for treatment.

These investments come as Vermont’s long-term care sector continues to grapple with the lingering effects of COVID-19 workforce losses. The state has already pumped roughly $40 million in bailout funds into nursing homes since 2020 to keep facilities afloat amid staffing shortages and rising reliance on traveling nurses.

The Bigger Picture

Vermont’s rural health funding stems from the One Big Beautiful Bill Act, which became law in July 2025. The legislation set aside $50 billion for rural healthcare nationwide, distributed in $10 billion annual allotments over five years. Every state is guaranteed at least $100 million, with additional funds awarded based on need.

State officials have until the end of 2026 to allocate the full $195 million Vermont received. The clock is ticking, and the needs are acute. As health citations pile up in states like New Mexico amid caregiver shortages, Vermont is betting that tuition incentives and targeted facility investments can stem the tide before it becomes a crisis.

Not everyone is convinced the approach goes far enough. Rep. Alyssa Black, who chairs the House Health Committee, called the funding “a shiny object meant to distract us from the impending cuts coming,” referencing expected Medicaid reductions and the loss of provider tax revenue that helps fund state Medicaid programs.

For now, nursing home operators and healthcare students are focused on what this money can do today — more trained staff, better-equipped facilities, and a path forward for rural long-term care in one of America’s most underserved states.