Health care highlights from Governor Rhoden’s 2026 State of the State Address

Tuesday, January 13, 2026, was the beginning of the 2026 South Dakota Legislative Session, with Governor Larry Rhoden delivering the State of the State Address. The health care highlights focus on quality, access, behavioral health and the Rural Transformation Plan.

Governor Rhoden emphasized that access to health care is a cornerstone of strong communities, particularly in rural South Dakota, where health care providers are often among the largest employers and essential to local stability. Recognizing the state’s wide geographic footprint, the Governor reaffirmed his commitment to ensuring rural and frontier communities have reliable access to high-quality care. Tim Rave, SDAHO’s President/CEO, shared, “Governor Rhoden’s address reinforces what our members see every day—strong, accessible health care is foundational to thriving rural communities, and SDAHO looks forward to working with policy makers to focus on health care priorities this session.”

A major focus of the address was South Dakota’s Rural Health Transformation Plan, which recently secured $189 million in federal funding—the first year of a five-year investment aimed at strengthening health care access statewide. This award exceeds the state’s original projection and positions South Dakota as a national leader in rural health innovation. The plan prioritizes practical, community-driven solutions, including expanded tele-health and technology, improved chronic disease management, and enhanced support for rural facilities.

Workforce development and behavioral health were also key themes. The Governor outlined plans to attract and retain health care professionals, expand the use of community health workers, and integrate behavioral health into primary care settings. The plan also includes establishing Certified Community Behavioral Health Clinics (CCBHCs) statewide and creating regional EMS hubs to improve emergency response and coordination in rural areas. Built with extensive input from rural communities, Tribal health leaders, and health care providers, the Governor urged swift legislative action—expressing his hope that authorization of this funding would be among the first bills to reach his desk.

The Governor is working with the Department of Labor and Regulation to advance legislation by establishing a State Apprenticeship Agency. As outlined in his address, this initiative would provide greater flexibility to design apprenticeship programs that meet the specific needs of South Dakota employers. Many South Dakota hospitals and clinics already utilize apprenticeship programs to support workforce recruitment and retention, and this legislation would further strengthen those efforts. “Governor Rhoden has laid out clear, thoughtful health care priorities, and SDAHO looks forward to a productive legislative session, to strengthen access and sustainability for heath care and their communities in South Dakota, said Rave.

To read the Governor’s State of the State speech in its entirety, Click Here.

The South Dakota Advocacy will be in Pierre for the entire run of the legislative session, working on behalf of our members. Learn more on SDAHO’s State Advocacy webpage or check out the SDAHO Bill Tracker for real time updates on legislation.