South Dakota state budget officials are preparing for significant financial challenges as sweeping federal budget cuts from the new presidential administration impact state funding.
Brandy Miesner, chief budget analyst, told the interim appropriations committee that the state has been cautious about relying on federal funds and may reject some grants to preserve core services like education and community support.
Key areas such as the Department of Health face cuts to grants addressing health disparities, childhood vaccinations, and infectious disease response—raising concerns amid a national measles outbreak affecting neighboring states.
State leaders must weigh whether to subsidize federal funding losses without compromising essential programs.