COVID-19 in Healthcare Relief Grants

Senate Bill (S.B.) 8, 87th Legislature, 3rd Called Session, 2021, appropriates funds to the Health and Human Services Commission (HHSC) for grants to support Texas healthcare providers affected by the COVID-19 pandemic:

  • $75,000,000 for rural hospitals (S.B. 8, Section 12);
    • $38,000,000 ($250,000 per rural hospital) via direct grant awards;
    • $37,000,000 distributed via a competitive grant process;
  • $200,000,000 for nursing facilities (S.B. 8, Section 33);
    • $90,000,000 ($75,000 per licensed facility) in direct grant awards;
    • $110,000,000 distributed via a competitive grant process;
  • $178,300,000 million for assisted living facilities (ALFs), home health agencies, intermediate care facilities for individuals with intellectual and developmental disabilities or related conditions (ICFs/IID), and providers of community attendant services (S.B. 8, Section 33) distributed via a competitive grant process.

Grants for Rural Hospitals

Texas hospitals eligible for these grants are those that, as of Nov. 8, 2021, meet the definition of a "rural hospital" per the 2022-23 General Appropriations Act, Senate Bill 1, 87th Legislature, Regular Session (Article II, Health and Human Services, Rider 8). The grants will support rural hospitals that have been affected by the COVID-19 pandemic. Read more about eligibility for the rural hospitals-healthcare relief grant.

The grants for rural hospitals are discretionary and can be used by rural hospitals to support staffing, infrastructure, or revenue losses related to the pandemic.

The distribution of grants will be in two tiers, as described below.

Tier 1: Rural Hospital Direct Grant Awards

Each rural hospital will be eligible to receive $250,000 as a direct grant award. To receive funds, each eligible entity will be required provide certain information that will be used to create a grant agreement and to fully execute a grant agreement in the manner prescribed by HHSC; a web-based form to submit required information will be made available for eligible providers to complete. The draft grant agreement will be distributed to the legally authorized representative of each eligible rural hospital in January 2022. These representatives will have 15 business days after the distribution of the grant agreements to sign and submit the agreement. Either the owner or operator of a facility may submit the agreement, but only one award will be made per facility.

Six months after the direct grant award, grantees must submit documentation to HHSC to describe what types of costs were paid for with the funds by category (staffing, infrastructure, lost revenue, etc.) and how long the funds lasted before they were fully expended. HHSC will establish and distribute the tool that providers must use to report this information prior to the end of the six-month period.

Tier 2: Rural Hospital Competitive Grants

The remaining grant funds for rural hospitals will be awarded through the Request for Application (RFA) process. Additional information regarding the RFA process will be updated on this webpage once finalized.

If you have specific questions, please email ProviderFinanceDept@hhs.texas.gov.

Grants for Nursing Facilities

The grants for nursing facilities are intended to address critical staffing needs resulting from frontline health care workers affected by COVID-19, including recruitment and retention bonuses for staff.

Texas nursing facilities that are licensed as of Nov. 8, 2021, are eligible for the nursing facility grants. Read more about eligibility for nursing facility grants.

The distribution of grants will be in two tiers, as described below.

Tier 1: Nursing Facility Direct Grant Awards

Each licensed nursing facility will be eligible to receive $75,000 as a direct grant award. To receive funds, each eligible facility will be required to provide certain information that will be used to create a grant agreement and to fully execute a grant agreement in the manner prescribed by HHSC; a web-based form to submit required information will be made available for eligible facilities to complete. The draft grant agreement will be distributed to the legally authorized representatives of each eligible nursing facility in January 2022. These representatives will have 15 business days after the distribution of the grant agreements to sign and submit the agreement. Either the owner or operator of a facility may submit the agreement, but only one award will be made per facility. For each individual facility ID, a separate grant agreement must be signed.

Six months after the grant award, grantees must submit the following information to HHSC: a description of how revenues were used (one-time recruitment bonuses, contracted staffing services, overtime pay, etc.) and information about how long the funds lasted before they were fully expended. HHSC will establish and distribute the tool that providers must use to report this information prior to the end of the six-month period.

Tier 2: Nursing Facility Competitive Grants

The remaining grant funds for nursing facilities will be awarded through the RFA process. Additional information regarding the RFA process will be updated on this webpage once finalized.

If you have specific questions, please email ProviderFinanceDept@hhs.texas.gov.

Grants for ALFs, Home Health Agencies, ICFs/IID, and Community Attendant Providers

The grants for ALFs, home health agencies, ICFs/IID, and community attendant providers are intended to address critical staffing needs resulting from frontline health care workers affected by COVID-19, including recruitment and retention bonuses for staff.

Competitive Grants for ALFs, Home Health Agencies, ICFs/IID, and Community Attendant Providers

The grant funds will be awarded through the RFA process. Additional information regarding the RFA process will be updated on this webpage once finalized.

If you have specific questions, please email ProviderFinanceDept@hhs.texas.gov.