WASHINGTON, D.C. — South Dakota will receive $90 million in federal funding to modernize rural health care technology, strengthen cybersecurity and improve information sharing among medical providers, expanding an investment program that has already directed more than $31 million toward health projects statewide.
The funding comes through the Rural Health Transformation Program, a $50 billion, five-year national initiative administered by the Centers for Medicare & Medicaid Services.
The latest allocation targets electronic health records, network infrastructure, virtual care capabilities and interoperability, allowing rural providers to exchange patient information more effectively while improving protections against cyber threats.
The investment will also support upgrades to health care facilities, diagnostic and surgical services, emergency treatment and access to specialties including oncology and cardiac care.
Additional priorities include mobile health services for tribal communities, maternal health resources and care coordination for underserved populations in remote areas.
South Dakota also plans to use the funding to strengthen its rural health care workforce and expand integrated, value-based care models intended to support providers’ long-term financial sustainability.
The $90 million allocation represents one component of South Dakota’s broader fiscal 2026 funding through the federal program.
Federal officials previously awarded more than $31 million in Rural Strong grants supporting 28 projects across 20 health systems in the state.
“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,” South Dakota Gov. Larry Rhoden stated.
Health and Human Services Secretary Robert F. Kennedy Jr. indicated the program gives states flexibility to develop strategies around local needs while requiring accountability for results.
“We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home,” Kennedy stated.
Sen. John Thune emphasized that the funding is intended to improve care, strengthen staffing and place rural providers “on paths to sustainability.”
The program was established under the Working Families Tax Cuts Act, which passed Congress with Republican support and no Democratic votes, according to the administration.
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