Last Updated on September 14, 2026 12:57 pm
Gov. Josh Stein and the N.C. Department of Health and Human Services announced $1.25 million in federal funding through the North Carolina Rural Health Transformation Program to expand preventive and acute health care, provide nutrition support and address behavioral health needs at school-based health centers.
Five organizations will receive funding: the Appalachian District Health Department, Blue Ridge Community Health Services, First Health of the Carolinas, Mountain Community Health Partnership and Wilson County Health Department. The Appalachian District Health Department serves Watauga, Ashe, Avery and Alleghany counties.
“This investment will bring critical health care directly to students in rural North Carolina,” said Gov. Stein. “For many young people struggling with their mental health, having these resources at school can make all the difference.”
When mental health services are available at schools, nearly 20% of public school students use those services. Roughly 30,000 children and youth receive health care from about 90 school-based health centers across North Carolina. The new funding will expand access in rural areas by providing services in new locations, using telehealth and mobile units, and increasing capacity at current rural locations.
“As we work to build a coordinated system that increases access to care for everyone in North Carolina, it is critical we reach people where they are, and for children, that is in their schools,” said NCDHHS Secretary Dev Sangvai. “This investment will remove barriers to care in rural communities, ensuring more children get resources and services they need.”
The funding is part of North Carolina’s Rural Health Transformation Program, a statewide initiative supported by more than $213 million in federal funding in its first year from the U.S. Centers for Medicare & Medicaid Services. The program is designed to address longstanding challenges in rural health care access and delivery, and is expected to bring hundreds of millions of dollars in federal investment to the state over the next five years.
“School-based health centers provide vital access to comprehensive, coordinated and preventive health care through direct services and programs or through referrals to other primary care providers,” said NCRHTP Director Maggie Woods. “We are grateful for our local, state and federal partners who share in the commitment to ensure children can access the care they need and deserve in their communities.”
Each eligible applicant was required to have an active grant agreement with the NCDHHS Division of Child and Family Well-Being, provide a School Health Center Program, and serve areas with limited access to local mental or physical health providers.
State officials say North Carolina will need to overcome significant funding losses stemming from the federal reconciliation law H.R. 1, including the loss of nearly $50 billion in federal funds to the state’s Medicaid program over the next 10 years and critical funding to hospitals statewide. NCDHHS says it will continue to advocate for additional funding for the state’s rural health care system.
More information on the North Carolina Rural Health Transformation Program is available at ncdhhs.gov.
