South Dakota will receive $90 million in federal funding to modernize health IT, strengthen cybersecurity and improve interoperability for rural and underserved communities, the Trump administration announced.
The money flows through the Centers for Medicare & Medicaid Services’ Rural Health Transformation Program, created under the Working Families Tax Cuts Act, which directs $50 billion over five years to help states redesign rural care delivery. South Dakota’s plan targets four areas: expanding care access and diagnostic capacity, modernizing EHRs and cybersecurity infrastructure, expanding tribal and maternal health services, and strengthening the rural workforce.
CMS Administrator Dr. Mehmet Oz said the funding reflects a patient-first approach to rural health.
“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,” Dr. Oz said.
Gov. Larry Rhoden said the investment will help modernize the state’s healthcare technology while protecting patient data. HHS Secretary Robert F. Kennedy Jr. said the funding gives states flexibility to design solutions suited to their own rural populations.
The $90 million adds to more than $31 million in “Rural Strong” grants South Dakota has already received for 28 projects across 20 health systems, part of the state’s broader fiscal year 2026 allocation under the program.
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