Lee says $1B federal rural health funds available but urges state law changes to unlock them

Governor Bill Lee said Tennessee has an opportunity to secure approximately $1 billion from the federal Rural Health Transformation Fund to support rural hospitals, EMS and primary care over five years, but that state legislative action is required to make those dollars usable.

Lee argued that some state regulations—specifically 50‑year‑old certificate-of-need (CON) requirements—discourage investment and limit competition. He told legislators that CON rules have, in his account, prevented roughly $1.5 billion in health-care investment since 2000 and urged the General Assembly to complete prior reform efforts to allow rural clinics and imaging centers to open.

The governor framed his request as both a practical step to increase provider access in rural areas and a necessary condition for eligibility and efficient use of federal funds. No bill text or specific statutory amendments were introduced during the address; Lee asked lawmakers to act during the upcoming session.