(From Todd Epp, Northern Plains News)
Federal spending reductions have significantly impacted South Dakota’s state agencies and programs, with total cuts exceeding $23 million since January, according to the South Dakota Bureau of Finance and Management.
That’s according to reporting by Northern Plains News.
The $23 million-plus total represents the cumulative impact, including direct state agency cuts ($9.1M), food program eliminations ($1.2M+ documented), potential additional USDA program impacts, and projected costs for agricultural transitions, making it a comprehensive assessment of federal funding impacts. The total addresses more than just direct grant terminations.
Health and Social Services
The Department of Health reports a loss of approximately $1.7 million in federal funding. The reductions include grants related to infectious disease capacity and substance abuse prevention programs.
Notably, the Epidemiology and Laboratory Capacity for Infectious Diseases program experienced funding decreases under both the Paycheck Protection Program and the American Rescue Plan Act. The Substance Abuse Prevention and Treatment Block Grant also saw diminished allocations to vendors such as Northern State University and Dakota Drug.
The figures were published in a federal funding impact spreadsheet released by the South Dakota Bureau of Finance and Management.
The Department of Social Services also faced cuts totaling more than $1.5 million. The document shows these reductions affected the Supplemental Block Grant for Community Mental Health Services, impacting service providers, including Starfish.
Education and Digital Equity
The Department of Education experienced significant funding reductions, including a $5 million cut from the State Digital Equity Planning and Capacity Grant. The grant, authorized under the Infrastructure Investment and Jobs Act, was designed to improve digital access and infrastructure throughout the state.
This funding change was included in the South Dakota Bureau of Finance and Management’s April 2025 summary of canceled or reduced federal awards.
Labor and Regulation
The Department of Labor and Regulation reported a loss of more than $5 million in federal support. That amount includes the State Digital Equity Planning and Capacity Grant, which is jointly administered with the Department of Education, according to the Bureau of Finance and Management.
Agriculture and Conservation
The U.S. Department of Agriculture’s Natural Resources Conservation Service outlined projected transition costs for producers moving toward National Organic Program compliance in fiscal year 2025. The estimated financial impact ranges from $9,856 to $12,753 per operation, depending on the type and scope of transition.
Those estimates are presented in the NRCS South Dakota FY2025 scenario planning document, published in November 2024.
Overview
The cumulative impact of these federal funding cuts spans multiple state departments, affecting health services, education, labor, and agriculture. The South Dakota Bureau of Finance and Management compiled the data as part of its April 2025 update on the effects of the federal Department of Government Efficiency program.
All figures referenced in this article are drawn from primary source documents published by the South Dakota Bureau of Finance and Management and the U.S. Department of Agriculture.
