Trump Administration Announces $90 million to Modernize and Improve IT and Interoperability for South Dakota

Trump Administration Announces $90 million to Modernize and Improve IT and Interoperability for South Dakota

Federal investment will help fast-track IT modernization, boost cybersecurity, and improve interoperability in rural and underserved communities across South Dakota

The Trump Administration announced a $90 million investment is being delivered to South Dakota through the federal Rural Health Transformation Program (RHTP) to accelerate digital health modernization, strengthen cybersecurity, and enhance interoperability across rural and underserved communities. This investment will strengthen South Dakota's health workforce, improve infrastructure, advance technology, and support innovative approaches tailored to the unique healthcare needs across the state.

"President Trump understands that every American deserves high-quality healthcare, no matter where they live," said Health and Human Services Secretary Robert F. Kennedy, Jr. "We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home. We are giving states the flexibility to build solutions around the people they serve, while demanding accountability for results. That is how we strengthen rural health, improve the lives of patients and families, and Make America Healthy Again."

"President Trump made a historic commitment to rural America, and these investments are turning that commitment into better care for patients in communities across South Dakota," said Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz. "This is what rural health transformation should look like: federal investment that is putting patients first, driving lasting improvements and expanding healthcare for the hardworking Americans who call these communities home."

This investment was made possible through the Working Families Tax Cuts Act- passed by Republicans in Congress and unanimously opposed by Democrats - delivering a historic $50 billion, five-year national investment to help states transform the way healthcare is delivered in America.

"We are building a stronger, more connected health care system for people across South Dakota," said Governor Larry Rhoden. "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 Dakotans deserve high quality, affordable health care in their communities, and South Dakota's plan under the Rural Health Transformation Program will allow for the investment of millions of dollars to improve our care, strengthen our health care workforce, and put our providers on paths to sustainability," said Senator John Thune. "I'm proud the program, created in the Working Families Tax Cuts, is at work in South Dakota and commend Governor Rhoden and the Trump administration for their work to improve care for Americans, especially in our rural communities."

"South Dakotans rely on strong rural health care services to maintain a healthy quality of life," said Senator Mike Rounds. "The $90 million secured for South Dakota from the Rural Health Transformation Program, passed as part of the Working Families Tax Cuts Act, will give our health care providers the resources and infrastructure they need to provide quality services in the most rural parts of our state. I appreciate the Trump administration's partnership in this area and look forward to continuing to work together to keep South Dakotans healthy."

"This significant investment through the Rural Health Transformation Program will make a real difference for patients, providers, and rural communities across our state. This is great news for rural health care and an important investment in the future of South Dakota communities," said Rep. Dusty Johnson.

Today's announcement is just one part of the larger overall funding amount being awarded to South Dakota for fiscal year 2026. The Administration has already announced over $31 million in "Rural Strong" grants supporting 28 projects across 20 health systems.

Key investments include:

• Expanding Care Access and Modernization: Supporting infrastructure improvements, diagnostic and surgical capacity, emergency care, and access to specialty services, including oncology and cardiac care.
• Digital Health and Technology: Modernizing electronic health records, cybersecurity and network infrastructure, and virtual care capabilities to better connect rural providers and patients.
• Tribal and Priority Population Health: Expanding mobile tribal health services, maternal health resources, and tailored care coordination for underserved communities in frontier areas.
• Workforce and Care Integration: Strengthening the rural healthcare workforce and advancing integrated, value-based care models to support long-term access and sustainability.

The Trump Administration is delivering on its commitment to strengthen rural America by investing in solutions that modernize technology to promote health and wellbeing for rural communities. Led by CMS, the RHT Program is partnering with South Dakota and states nationwide to move beyond one-size-fits-all approaches and give rural communities the tools to build stronger, more innovative, and more sustainable health systems that deliver better care and better outcomes for the Americans they serve.

For more information about the RHTP, visit: https://www.medicaid.gov/resources-for-states/rural-health.

###

Get CMS news at cms.gov/newsroom , sign up for CMS news via email and follow CMS on X @CMSgov