The funding aims to modernize electronic health records, improve network infrastructure, and increase data security in rural communities.
The Trump administration announced a $90 million investment for South Dakota to modernize healthcare information technology, strengthen cybersecurity, and improve data sharing across rural and underserved communities.
The funding is delivered through the federal Rural Health Transformation Program, an initiative designed to accelerate digital health modernization and support innovative approaches to healthcare in rural areas.
“President Trump understands that every American deserves high-quality healthcare, no matter where they live,” says Robert F. Kennedy Jr, health and human services secretary, in a release. “We are putting resources directly into rural communities to strengthen the health workforce, modernize infrastructure, expand access, and bring care closer to home.”
Funding and Infrastructure Goals
The $90 million award is part of the Working Families Tax Cuts Act, which provides a $50 billion national investment over five years to help states change healthcare delivery. According to the administration, the program aims to give states the flexibility to build localized solutions while maintaining accountability for results.
“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,” says Dr Mehmet Oz, Centers for Medicare & Medicaid Services administrator, in a release.
The investment includes several key areas of focus for healthcare technology management and infrastructure:
- Digital Health and Technology: Modernizing electronic health records, cybersecurity, network infrastructure, and virtual care capabilities to connect rural providers and patients.
- Expanding Care Access: Supporting infrastructure improvements for diagnostics, surgical capacity, and emergency care.
- Workforce and Integration: Strengthening the rural healthcare workforce and advancing value-based care models to support long-term access and sustainability.
- Tribal Health: Expanding mobile tribal health services and care coordination for underserved communities in frontier areas.
State and Legislative Support
South Dakota officials highlighted the importance of data security and local provider sustainability. Governor Larry Rhoden notes that the investments in technology will help rural providers keep patient data secure while modernizing the state’s healthcare system.
“The $90 million secured for South Dakota from the Rural Health Transformation Program … will give our health care providers the resources and infrastructure they need to provide quality services in the most rural parts of our state,” says Senator Mike Rounds, in a release.
The announcement is part of a larger funding package for South Dakota for fiscal year 2026. The administration previously announced over $31 million in “Rural Strong” grants, which supported 28 projects across 20 health systems in the state.
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