RFK Jr. in Atwater: $102M for Health Clinics, Castle Family Gains Full FQHC Status

U.S. Health and Human Services Secretary Robert F. Kennedy Jr. visited Atwater on Thursday to announce $102 million in new federal grants for community health centers across the country, aimed at expanding access to primary care, including in rural communities. The event, held at Castle Family Health Services, also celebrated the clinic's upgrade from "look-alike" status to a full Federally Qualified Health Center.

• Kennedy unveiled $102 million in New Access Point grants to expand primary care at nearly 160 health center organizations nationwide.
• Castle Family Health in Atwater is one of 66 "look-alike" centers selected for full FQHC status, unlocking new funding and benefits.
• The Atwater clinic receives a $650,000 grant from the program.
• California health centers collectively received more than $17 million, the largest state total.
• Kennedy defended the One Big Beautiful Bill Act, while nonpartisan analysts project about $1 trillion in healthcare cuts by 2034.

A Major Federal Boost for Community Health Centers

Kennedy, joined by federal Health Resources and Services Administrator Thomas Engels, said the New Access Point grants will support almost 160 new and existing health centers. Those centers will open 415 new care sites and expand primary-care access to about 1 million people nationwide.

"It's the first major expansion of the health center program since the first Trump administration in 2019," Kennedy told clinic administrators and staff. He called community health centers "what the American health system should look like" and "the template for what we should be doing everywhere."

Kennedy emphasized the community-rooted nature of health centers, saying, "The youth centers succeed because they are rooted in the community they serve. They know their patients. They think primary care prevention, behavioral health, nutrition service, other essential cares together in one place." He also noted that these centers "reach Americans who might otherwise go without until a health problem becomes a crisis, and they have to go to the emergency room. This is one of the most effective models we have for delivering primary care in America."

He added that primary care is a key to keeping people healthy, and that "the one institution that is doing that really well in this country is community health centers." After visiting the Atwater clinic, he said, "I come away inspired, as I did today. A patient from the poorest family and the poorest community can walk into this health center off the street and get eye care and get dental care, get comprehensive care, and they won't let him leave this hospital until he's had his blood pressure tests and glucose levels and all the tests that you need to keep that person healthy over the long run."

Castle Family Health Earns Full FQHC Status

Castle Family Health opened in 2006 and received a "look-alike" designation in 2010. The designation was made by the federal Bureau of Primary Health Care. That status allowed the center to operate like a Federally Qualified Health Center but without access to grants, malpractice insurance benefits, and other key resources.

CEO Peter Mojarres said the center sees between 33,000 and 34,000 patients over about 185,000 visits each year, with an annual budget of roughly $31 million to $32 million. About 71% of patients are covered by Medi-Cal.

Kennedy said the Atwater clinic was chosen because it was one of only 66 "look-alike" centers upgraded nationwide, selected from about 600 applicants.

Addressing CEO Peter Mojarres directly, Kennedy said: "I'm so happy to be able to give you something that you should have been given a long time ago, and that's going to expand your ability to extend patient care to even more people in this community."

California Stands Out in Grant Awards

A total of 27 clinic organizations in California are receiving more than $17 million, the largest total of any state. Three San Joaquin Valley organizations were selected: Castle Family in Atwater, Fresno-based United Health Centers of the San Joaquin Valley, and San Joaquin County Health Services Employees Guild in Stockton.

In total, 158 center organizations across the country received New Access Point grants, including the 27 in California.

Medicaid Cuts Debate Intensifies

Kennedy disputed reports that the One Big Beautiful Bill Act, signed into law in 2025, would lead to about $1 trillion in Medicaid cuts by 2037. He cited the Congressional Budget Office in saying "Medicaid will be increased by 47%."

He said some people are being removed from Medicaid rolls who are not entitled to benefits, including "people who are undocumented aliens so it's illegal for them to get Medicaid, people who have million-dollar homes, … and there are people who are being enrolled in Medicaid in multiple states." He also acknowledged that "$100 million is not a lot of money" in the federal budget, but added that "it is a lot of money for the Federally Qualified Health Centers. Why? Because they have been operating on shoestrings."

However, analyses from The Urban Institute, KFF News, and the Western Journal of Emergency Medicine, also citing the CBO, project the bill would reduce federal healthcare spending by about $1 trillion by 2034. The conflicting figures have caused concern among FQHC operators in the Valley.

Assemblymember Patrick Ahrens, whose district includes parts of Silicon Valley, sharply criticized the federal health care cuts. "$100 million for primary care helps, but pales in comparison to the $1 trillion in federal health care cuts that Donald Trump and MAGA Republicans in Congress forced through H.R. 1 on our healthcare system," he said in a statement. "That is projected to cause more than 2 million Californians to lose access to healthcare, putting 83 California hospitals at-risk of closing, increasing wait times for care, causing higher costs for everyone, and is estimated to needlessly kill 51,000 Americans each year."

FOX26 News also attempted to ask Kennedy why distressed hospitals were not receiving comparable federal relief, given the administration's emphasis on expanding access to care. Only three questions were taken during the news conference, and the secretary did not address that query. A follow-up email to HHS also went unanswered as of this writing.

Local California Context

The announcement puts Atwater, a small city in Merced County, at the center of a national healthcare policy move. Castle Family Health serves a largely low-income, Medi-Cal-dependent population, and the full FQHC designation will let the clinic pursue additional grant funding and lower malpractice costs.

Meanwhile, California lawmakers recently approved hundreds of millions in state funding, including more than $200 million for distressed hospitals, as hospital leaders warn of a financial crisis worsened by federal changes.

Just two days before Kennedy's visit, hospital leaders in Silicon Valley had warned that public hospital systems are facing enormous financial strain. "Public hospital systems still face nearly $4 billion in annual losses, and the years ahead look much worse, not better. There is a gap that no public hospital system can solve on its own," one hospital leader said. Another official added, "The bad news is that the worst impacts of this federal budget cut, which has stripped more than a trillion dollars in our health care system, including $30 billion per year in California, are still to come and felt by regular people."

Background

Federally Qualified Health Centers have long served as safety-net providers for uninsured and underinsured communities. The "look-alike" designation was created to let clinics prepare for full FQHC status, but it left many centers without access to key federal benefits. The New Access Point program dates back to earlier expansions and is now seeing its first major growth since 2019.

Conclusion

The $102 million investment and Castle Family Health's upgrade are expected to expand access to primary, dental, and eye care in Atwater and surrounding communities. For residents in Merced County, the change could mean shorter waits and more comprehensive services.