South Dakota to Receive $90 Million Federal Investment to Modernize Rural Health Care and Expand Digital Access
- Steve Jurrens
- Aug 19
- 3 min read
Northeast Radio SD News – South Dakota - South Dakota will receive a $90 million federal investment to modernize rural health care, strengthen cybersecurity, and expand digital access under the Rural Health Transformation Program (RHTP), the Trump Administration announced Tuesday. The funding is aimed at improving infrastructure, supporting the health care workforce, and advancing technology across rural and underserved communities statewide.
Health and Human Services Secretary Robert F. Kennedy, Jr. said the investment reflects a national commitment to ensuring rural residents receive high‑quality care.
“President Trump understands that every American deserves high-quality healthcare, no matter where they live,” Kennedy said. “We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home. We are giving states the flexibility to build solutions around the people they serve, while demanding accountability for results.”
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said the funding represents a major step forward for rural health systems.
“President Trump made a historic commitment to rural America, and these investments are turning that commitment into better care for patients in communities across South Dakota,” Oz said. “This is what rural health transformation should look like: federal investment that is putting patients first, driving lasting improvements and expanding healthcare for the hardworking Americans who call these communities home.”
The RHTP funding was made possible through the Working Families Tax Cuts Act, passed by Republicans in Congress and opposed unanimously by Democrats. The law created a five‑year, $50 billion national investment to help states overhaul rural health delivery systems.
Governor Larry Rhoden said the investment will help modernize care statewide.
“We are building a stronger, more connected health care system for people across South Dakota,” Rhoden said. “These investments in technology and tools for rural providers will continue to modernize our health care and make sure more of our citizens can access the very best care while keeping their data secure.”
Senator John Thune said the program will help rural providers remain sustainable.
“South Dakotans deserve high-quality, affordable health care in their communities, and South Dakota’s plan under the Rural Health Transformation Program will allow for the investment of millions of dollars to improve our care, strengthen our health care workforce, and put our providers on paths to sustainability,” Thune said.
Senator Mike Rounds said the funding will support care in the state’s most remote areas.
“The $90 million secured for South Dakota from the Rural Health Transformation Program… will give our health care providers the resources and infrastructure they need to provide quality services in the most rural parts of our state,” Rounds said.
Rep. Dusty Johnson called the investment “great news for rural health care” and said it will make a “real difference for patients, providers, and rural communities across our state.”
Part of a Larger Funding Package
The $90 million allocation is one portion of the federal funding South Dakota will receive in fiscal year 2026. The Administration has already announced more than $31 million in “Rural Strong” grants, supporting 28 projects across 20 health systems.
Key Investment Areas
Expanding Care Access and Modernization: Infrastructure upgrades, expanded diagnostic and surgical capacity, emergency care improvements, and increased access to specialty services such as oncology and cardiac care.
Digital Health and Technology: Modernizing electronic health records, strengthening cybersecurity, upgrading network infrastructure, and expanding virtual care capabilities to better connect rural patients and providers.
Tribal and Priority Population Health: Enhancing mobile tribal health services, maternal health resources, and tailored care coordination for underserved frontier communities.
Workforce and Care Integration: Strengthening the rural health workforce and advancing integrated, value‑based care models to support long‑term access and sustainability.
Federal officials say the RHT Program is designed to move beyond one‑size‑fits‑all approaches and give rural states the tools to build more innovative, sustainable health systems.
More information about the Rural Health Transformation Program is available at medicaid.gov/resources-for-states/rural-health.
