Governor Glenn Youngkin has issued two executive directives aimed at improving rural health care and reducing error rates in the Supplemental Nutrition Assistance Program (SNAP) across Virginia. The actions are intended to address challenges in health care access for rural communities and to avoid increased state costs related to SNAP benefit processing errors.
According to Governor Youngkin, new federal funding from H.R. 1, known as the “One Big Beautiful Bill Act,” presents an opportunity for significant change. “The new funding provided in H.R. 1 for the Rural Health Transformation Program creates a unique and timely opportunity to overhaul the way we deliver healthcare in rural communities. The additional federal funding, which is estimated to be between $500 million and $1 billion for Virginia alone over the next five years, will provide substantial resources to ensure that these communities and those who live there have ready access to healthcare,” said Governor Glenn Youngkin.
Janet V. Kelly, Secretary of Health and Human Resources, highlighted the administration’s approach: “Since day one, Governor Youngkin has led efforts to make government work better for Virginia. This is a once-in-a-generation chance to address healthcare challenges in our rural communities and to improve our SNAP error rates. We will work closely with local social service agencies, hospitals, federally-qualified healthcare clinics, community pharmacists, non-profit organizations and Medicaid managed care organizations to reimagine healthcare delivery,” said Secretary Kelly.
H.R. 1 includes provisions affecting both Medicaid and SNAP programs nationwide. It introduces work requirements for able-bodied adults without dependents beginning December 31, 2026; prohibits coverage of illegal immigrants; increases Medicaid eligibility checks for expansion populations from annually to every six months; and imposes penalties on states with high Medicaid payment error rates starting in Fiscal Year 2030.
For rural health care specifically, H.R. 1 establishes a Rural Health Transformation Program that allocates $50 billion nationally between Fiscal Year 2026 and Fiscal Year 2030. Half of these funds will be distributed equally among all states—providing Virginia with an annual allocation of $100 million over five years—and the other half through competitive grants based on factors such as rural population percentage and hospital conditions within each state.
The governor’s directive tasks the Secretary of Health and Human Resources with developing a plan alongside various state agencies and health providers to leverage these funds effectively for improving access to quality care in rural areas. Stakeholder outreach will also be conducted regarding new program requirements.
On SNAP benefits processing, changes introduced by H.R. 1 mean that beginning October 1, 2027, states with payment error rates above six percent must contribute a share toward benefits paid out—potentially costing Virginia up to $270 million per year if current error rates persist. Currently, all SNAP benefits are federally funded.
To address this risk, Governor Youngkin has directed several measures including incentive programs for local agencies adopting best practices; mandatory training for benefit staff; stricter verification of applicant information; exploration of public-private partnerships; system reforms utilizing contractors where needed; and possible use of advanced technology such as artificial intelligence to improve accuracy.
These initiatives aim not only at maintaining compliance with new federal standards but also at ensuring continued support for vulnerable populations throughout Virginia.
