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Grants to Texas Rural Hospitals for Construction,
Renovations, and Equipment Purchases

Rural Health Facility Capital Improvement Program (CIP)

Agency Type:


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Texas Department of Agriculture - State Office of Rural Health (SORH)

Deadline Date:

05/16/22 11:59 PM CT


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Grants of up to $75,000 to Texas nonprofit and public hospitals serving rural communities for capital projects. Funding is intended to enhance and upgrade existing facilities, build new health facilities, and purchase equipment. The goal of the grant program is to support projects aimed at improving health services and healthcare infrastructure in rural hospitals across Texas.

Allowable expenses include activities that further, or sustain, a hospital’s ability to provide healthcare. To include:

  • Life Safety Code Violation: Violations may include unsafe flooring, food safety, a new fire sprinkler system, and upgrades to meet new code requirements. 
  • Patient Care Project: Must be non-expendable personal property with a unit cost of more than $5,000 and a useful life of more than one year. Ex.: Mammography equipment, X-ray machine, lab equipment, ambulance or community paramedicine van, etc.
  • Construction (Repairs/Remodeling/Maintenance) Project: Includes, but is not limited to, contracts for any construction on the hospital or outbuildings, remodel projects, additions, etc. Ex: New roof, HVAC, clinic remodeling, window replacement, etc.
  • Other (contract for non-medical services): Designing, engineering, supervising, surveying, and other expenses incidental to the acquisition, construction, or improvements of new hospitals.

Commitment of Key Personnel: To ensure the success of the project, key personnel directly impacted by the project should be included and involved with the planning and development of the project. Their involvement is a must to ensure the project is effectively implemented, that it will meet the identified needs, and also guarantee its sustainability. For example, if an applicant has applied for funding to purchase infant warmers, the head of the nursery department would be consulted to certify the need for the equipment and its prolonged use.

GrantWatch ID#:

GrantWatch ID#: 177903

Estimated Size of Grant:

Award amounts shall not exceed $75,000.

Term of Contract:

CIP grant period: August 31, 2022, through August 30, 2023.

If a situation occurs between the grant submission date (May 16, 2022) and the contract start date (August 31, 2022) whereby the applicant is forced to incur project costs such as the purchase of equipment, the applicant MUST contact the State Office of Rural Health and receive written approval prior to the purchase. Approval is on a case-by-case basis and issued based on the necessity of the purchase. Approval of pre-award costs does not guarantee an award will be made. Prior to the contract start date of August 31, 2022, if costs are incurred without prior approval, TDA is not liable for any costs incurred by the applicant.

Additional Eligibility Criteria:

Eligible applicants for CIP include public and non-profit hospitals located in rural counties. For purposes of this program, the following definitions shall apply:
(1) "Public hospital" means:
(a) a general or special hospital licensed under Chapter 241 of the Texas Health and Safety Code;
(b) that is owned or operated by a municipality, county, municipality and county, hospital district, or hospital authority;
(c) that performs inpatient and outpatient services; and
(d) that operates off of government funding/public money (e.g., money collected from taxpayers and public contributions).

Note: A hospital or medical facility that is leased, licensed, managed, and funded by an individual, a group of people or a for-profit entity, or operated with private profit, is not considered a public hospital.

(2) "Rural County" means a county that has a population of 150,000 or less; or with respect to a county that has a population of more than 150,000 and contains a geographic area that is not delineated as urbanized by the federal census bureau, that part of the county that is not delineated as urbanized.

CIP funds shall not be utilized to reimburse an applicant for operating expenses, debt retirement, or recruitment/retention of providers.

Pre-Application Information:

Applications are due by May 16, 2022, at 11:59 pm.

Applicants are required to commit a 25% match of CIP funds requested. For example, if requesting $75,000 in CIP funding, an applicant must commit to a match of $18,750 for a total project cost of $93,750. Matching funds must be reflected within the application and must be associated with the same proposed project activities as the requested CIP funding.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply online:

For questions regarding the submission of the application and/or Texas Department of Agriculture (TDA) requirements, please contact your Texas State Office of Rural Health (SORH) Regional Coordinator:
- South Region: Eva Cruz:
- West Region: Kathy Johnston:
- East Region: Trish Rivera:
- North Region: Lyn Schermerhorn:
- Central Region: Shari Wyatt:
- Panhandle Region: Ryan Horsak:

You may also call (512) 936-7875 or email if you need immediate assistance.

URL for Full Text (RFP):

Geographic Focus:

USA: Texas

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