This bill amends Title XVIII of the Social Security Act to modify the criteria for designating facilities as Critical Access Hospitals (CAHs) under the Medicare program. Effective October 1, 2026, it introduces new provisions allowing states to designate certain hospitals as CAHs, specifically targeting those serving military families, veterans, and tribal communities in rural areas. Under the proposed changes, a facility may be designated as a CAH without meeting all existing criteria if it satisfies three or more of five new conditions. These conditions include serving TRICARE beneficiaries and veterans in rural areas, not being a sole community hospital, or deriving a significant portion of its revenue from TRICARE services, particularly for labor and delivery. Additionally, hospitals located on a reservation are eligible for this alternative designation. Furthermore, the bill permits these newly designated CAHs to establish psychiatric and rehabilitation distinct part units without the usual bed count limitations. These units will also not be factored into determining whether the facility primarily provides general hospital services, offering greater flexibility for specialized care in rural settings.