South Dakota Secures $189.4 Million for Rural Health Transformation

Northeast Radio SD News – South Dakota - Governor Larry Rhoden and the South Dakota Department of Health (DOH) announced Monday that the state has secured $189.4 million in federal funding for Fiscal Year 2026 to overhaul and strengthen rural healthcare systems.

The funding is part of the Rural Health Transformation (RHT) Program, a five-year federal initiative established under the One Big Beautiful Bill Act. The program will provide a total of $50 billion nationally between 2026 and 2030 to support state-led innovations in healthcare access and sustainability.

“A rich rural heritage is one of South Dakota’s greatest strengths, and this is one of the most significant healthcare infrastructure investments in our state’s history,” Rhoden said. “These resources will help us modernize rural healthcare, support the workforce that delivers it, and ensure that all South Dakotans have access to quality care – no matter where they live.”

A Collaborative Effort

South Dakota’s successful application was the result of a broad coalition. The Governor’s Office and the DOH worked alongside the South Dakota Association of Healthcare Organizations (SDAHO), the state’s three major hospital systems, and the Great Plains Tribal Leaders Health Board. Provider associations and various rural communities also provided critical input during the application process.

Secretary of Health Melissa Magstadt emphasized that the award is a testament to the state's unified approach. “This award reflects South Dakota's collaborative approach – bringing together healthcare systems, Tribal nations, community organizations, and state government to build solutions that work for rural communities,” Magstadt said.

Modernizing Care

The RHT Program aims to move beyond temporary fixes by focusing on long-term infrastructure and innovation. Key pillars of the program include:

·        Infrastructure Modernization: Upgrading rural facilities and equipment.

·        Workforce Support: Recruiting and retaining healthcare professionals in underserved areas.

·        Innovation: Expanding telehealth services and data-sharing capabilities to ensure sustainable access to care.

Governor Rhoden is expected to provide more specific details regarding the implementation of the RHT Program and its impact on South Dakota during his State of the State Address on January 13, 2026.

For additional information regarding the South Dakota Rural Health Transformation Project, residents and healthcare providers are encouraged to visit the Department of Health website.