MITCHELL, SD (Mitchell Now) — Gov. Larry Rhoden and the South Dakota Department of Health announced the state has secured $189.4 million in federal funding for fiscal year 2026 through the Rural Health Transformation (RHT) Program, a five-year initiative focused on strengthening health care systems in rural communities.
The RHT Program was established under the One Big Beautiful Bill Act and provides $50 billion nationwide over five years, spanning fiscal years 2026 through 2030, to support state-led strategies aimed at improving access, innovation and long-term sustainability in rural health care.
In a statement, Rhoden called the award one of the most significant health care infrastructure investments in state history, saying it will help modernize rural health care and support the workforce. Department of Health Secretary Melissa Magstadt said the funding reflects a collaborative approach among health care systems, Tribal nations, community organizations and state government.
The governor’s office said the application involved engagement with the Governor’s Office, Department of Health, the South Dakota Association of Healthcare Organizations, the state’s major hospital systems, the Great Plains Tribal Leaders Health Board, provider associations and rural communities statewide.
Rhoden is expected to share additional specifics on the program during his State of the State address Jan. 13, 2026. More information on South Dakota’s RHT effort is posted on the Department of Health website.
