Makenzie Huber/South Dakota Searchlight
The first bill Gov. Larry Rhoden signed into law this legislative session approves spending of federal funds for South Dakota’s Rural Health Transformation Program.
The federal government awarded South Dakota $189.5 million to carry out the first year of the five-year program. The funding comes from $50 billion Congress included in the One Big Beautiful Bill Act, in response to concerns that the bill’s Medicaid cuts will hurt rural health providers. Medicaid is a federal-state program that provides health insurance for people with disabilities or low incomes.
Rhoden said the approval is a “big win for South Dakota.”
“This may be the most significant investment in rural health care in South Dakota’s history, and it will strengthen our state for our kids and grandkids,” Rhoden said in a news release.
The state plans to use the money to recruit health care professionals to rural areas, modernize facilities and expand access to care — including to behavioral health and maternal and infant care.
Sen. Mykala Voita, R-Bonesteel, voted to approve the funding on the Senate floor, despite saying the spending happens while the federal government’s level of debt “makes me sick to my stomach.”
She added that she lives in one of the “extremely rural areas” that’ll likely benefit from the program and that she hopes the state spends “this money toward where it’s supposed to go: and this is bridging the gap between Rapid City and Sioux Falls.”
The state received about $4 million less than requested in its first year, and it requested $212.3 million for its second year.
The state Department of Health will share quarterly expense reports about the program with the Legislative Research Council and the Department of Legislative Audit.