South Dakota Governor Larry Rhoden has signed House Bill 1044 into law, appropriating funding for the Rural Health Transformation Program — marking the first piece of legislation he has approved during the current legislative session.
State officials described the move as a historic investment in rural healthcare, aimed at strengthening medical services across South Dakota’s smaller communities.
“This is a big win for rural South Dakota,” Rhoden said in a statement. “This may be the most significant investment in rural healthcare in South Dakota’s history, and it will strengthen our state for our kids and grandkids. By recruiting healthcare professionals, modernizing rural facilities, and expanding access to care, we will ensure South Dakotans in every corner of the state can stay healthy and strong.”
The Rural Health Transformation Program is a five-year federal initiative supported by President Donald Trump’s “One Big Beautiful Bill,” focusing on improving healthcare systems in rural areas through workforce recruitment, facility upgrades, innovation, and long-term sustainability.
Rhoden had previously signaled the importance of the measure during his State of the State Address, telling lawmakers he hoped it would be the first bill to reach his desk.
“I would love it if this was the first bill that reaches my desk,” the governor said at the time.
Earlier this year, the governor announced South Dakota secured $189.4 million in federal funding for Fiscal Year 2026 through the program. The funding is intended to support state-led strategies aimed at expanding access to care, encouraging innovation in service delivery, and strengthening the financial stability of rural healthcare providers.
State officials say the investment will help address long-standing challenges in rural medicine, including provider shortages and aging healthcare infrastructure.