FOR IMMEDIATE RELEASE

December 29, 2025

Contact: Josie Harms

Gov. Rhoden and DOH Secure $189.4 million for Rural Health

PIERRE, S.D. – Today, Governor Larry Rhoden and the Department of Health (DOH) announced they secured $189.4 million in federal funding for Fiscal Year 2026 through the Rural Health Transformation (RHT) Program, a five-year federal initiative that focuses on strengthening healthcare systems in rural communities.

“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,” said Governor Larry Rhoden. “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.”

The RHT Program was established under the One Big Beautiful Bill Act and provides $50 billion in funding over five years (FY 2026–2030) to support state-led strategies that improve access, innovation, and long-term sustainability in rural health.

South Dakota’s successful application and award were made possible through extensive engagement between the Governor’s Office, the Department of Health, the South Dakota Association of Healthcare Organizations, the state's three major hospital systems, the Great Plains Tribal Leaders Health Board, provider associations, and rural communities statewide.

“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,” said Secretary Melissa Magstadt.

Governor Rhoden will share additional specifics on the RHT Program in his State of the State Address on January 13, 2026.

For more information about South Dakota’s Rural Health Transformation Project, visit the DOH website.

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