Rural Hospital Stabilization Act of 2025

This bill sets up a new grant program to help rural hospitals keep their doors open and improve care. It funds building repairs, equipment upgrades, and everyday costs like payroll (but not pay for top hospital leaders) and debt payments. Total funding is $500 million, with grants capped at $5 million per hospital over any five-year period.

• Who is affected: Rural hospitals at least 15 miles from the nearest hospital and 20 miles from the nearest urbanized area, public or private.
• What changes: Hospitals can apply for grants to fix or upgrade facilities and equipment, and to cover operating costs like staff pay (excluding leadership payroll) and debt. Funds must add to, not replace, other federal, state, local, or Tribal funds.
• How much: Up to $5 million total per hospital across five years; $500 million is authorized overall.
• When: Money is authorized for fiscal years beginning after September 30, 2025.

Hospitals must explain how the money will meet their financial needs, protect access to care for local residents, and how they will keep things going after the grant ends. The federal government must report back to Congress within 18 months on how the program is working and whether it is helping rural residents keep access to hospital services.