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US CMS Newsroom · United States · 19 Aug 2026 · News & press

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

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The Trump Administration announced a $90 million investment to South Dakota through the Rural Health Transformation Program to modernize digital health infrastructure, strengthen cybersecurity, and improve interoperability in rural and underserved communities. The funding supports expanding care access, modernizing electronic health records and virtual care capabilities, expanding tribal and priority population health services, and strengthening the rural healthcare workforce. This is part of larger fiscal year 2026 funding for South Dakota, which already includes over $31 million in "Rural Strong" grants supporting 28 projects across 20 health systems.

From US CMS Newsroom

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.”

“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.”

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