FOR IMMEDIATE RELEASE

April 8, 2026

Contact: Josie Harms

Governor Rhoden Announces Investments to Strengthen South Dakota’s Defense Industry

PIERRE, S.D. – Today, Governor Larry Rhoden announced the creation of the South Dakota Defense Institute and a new collaboration space in Rapid City’s Innovation District as part of his initiative to make national security South Dakota’s “next big industry.”

“National security is South Dakota’s next big industry, and it is a tremendous opportunity to keep South Dakota strong, safe, and free,” said Governor Larry Rhoden. “Our state is building the partnerships and infrastructure needed to support national defense. We are ready to roll up our sleeves and create new opportunities for our people to keep our state – and our nation – secure.”

Governor Rhoden is awarding $5 million from the Future Fund to establish and operate the South Dakota Defense Institute (SDDI) for an initial five years. The Institute will serve as a central hub to coordinate industry, education, and government partners. When operational, the SDDI will engage directly with federal defense agencies and other related stakeholders to support businesses pursuing defense contracting opportunities.

This announcement is a continuation of Governor Rhoden’s focus on national security as South Dakota’s “next big industry,” which he announced in his State of the State address. Last year, the Governor created the Governor's Resilience and Infrastructure Task Force (GRIT) to support  President Trump’s Executive Order 14239, “Achieving Efficiency Through State and Local Preparedness,” which empowers state and local governments to play a more active role in national resilience and preparedness. GRIT will be complementary to this work.

“South Dakota has strong national security assets – robust food security, a thriving cybersecurity industry, research institutions, defense companies, workforce programs, and proximity to major military operations,” said Governor Larry Rhoden. “To continue to make important contributions to America’s security, we need to emphasize collaboration between industry experts and resources.”

Governor Rhoden also announced an additional $1 million Future Fund allocation to Elevate Rapid City for the purchase of a building in Rapid City’s Innovation District. The facility will be the SDDI headquarters and provide a collaborative space to bring together students, researchers, and defense companies to support innovation, workforce development, and industry growth.

“Elevate Rapid City is proud to partner with the State and Governor to make the Defense Institute a reality. Rapid City’s Innovation District is where talent, industry, and lifestyle come together,” said Todd Kenner, Interim CEO of Elevate Rapid City. “The space will play a key role not only for Rapid City, but for our nation’s defense, as we continue to create opportunities for the next generation.”

The SDDI will be organized adjacent to the Governor’s Office of Economic Development and staffed by experienced leaders with military and defense industry backgrounds. The Institute will partner with private businesses and local economic development organizations, and with state agencies including the South Dakota National Guard, the Department of Labor and Regulation, the Board of Regents, and the Board of Technical Education.

###