South Dakota

Governor Rhoden highlighted the Science of Reading initiative backed by a $6 million state investment leveraging $54 million in federal dollars, rewritten reading standards, and reformed teacher training. He announced common core math standards being replaced with 'common sense' standards, celebrated the federal school choice opportunity through the One Big Beautiful Bill, and proposed a bill giving school boards more flexibility to address disruptive student situations.

Governor Rhoden announced South Dakota received $189 million in federal Rural Health Transformation funding — higher than the $100 million per year expected. The plan focuses on workforce development, Certified Community Behavioral Health Clinics, regional EMS hubs, and integrating behavioral health into primary care. He emphasized the state would not create unsustainable programs, urging quick legislative authorization to potentially be 'the first state in the nation to authorize this funding.'

Governor Rhoden emphasized South Dakota's strong economic fundamentals including the second most competitive tax system, second least regulations, lowest unemployment rate, and growing incomes exceeding the national average. He proposed cutting owner-occupied property taxes through a local option sales tax replacement and highlighted national security as the state's next big economic development focus, citing MMS Products' $35 million drone munitions contract.

Governor Rhoden highlighted the GRIT task force assessing infrastructure resilience to disasters, system failures, and cyber threats, and recommended expanding the SecureSD cybersecurity program to rural water systems. He emphasized healthcare infrastructure through $189 million in federal rural health transformation funding and proposed a new welding and machining facility at Southeast Tech.

Governor Rhoden detailed Operation Prairie Thunder results: 432 individuals brought into custody, over 1,000 drug charges, nearly 250 warrants executed, 38 DUIs, 63 illegal aliens handed over to ICE, 9 cartel/gang members apprehended, and a record 207-pound meth bust. He announced continued saturation patrols, expansion of 287(g) agreements, and proposed legislation to protect law enforcement officers' personal information from doxxing. He honored Trooper Emily Metzger with the Governor's Award for Heroism for deliberately initiating collisions to stop a wrong-way driver.

Governor Rhoden did not make energy a major focus but mentioned the state's work on cybersecurity for rural infrastructure including water systems, and briefly touched on tourism and outdoor recreation as economic drivers.

Governor Rhoden did not make housing a significant focus of his address, instead concentrating on property tax relief, healthcare, and public safety.

Governor Rhoden proposed allowing counties to replace their share of property taxes with a half-cent sales tax as a local option, not a mandate. He emphasized the state's second-most-competitive tax system in America, second-least regulations, and lowest unemployment rate. He positioned the proposal as empowering local decision-makers and noted the areas with the biggest property tax increases also attract the most visitors, allowing tourist revenue to offset property tax reductions.

Governor Rhoden declared national security as South Dakota's "next big industry," highlighting cybersecurity growth of 350% over the past decade (second-fastest in the nation), Dakota State University's cybersecurity leadership, and MMS Products' $35 million drone munitions contract. He proposed expanding the SecureSD cybersecurity program to protect rural water systems and other nonprofit utilities from cyber threats.

Governor Rhoden highlighted the loss of 3,600 family farms in the past decade and extended support for the Keep Farmers Farming initiative to help with estate and transition planning. He emphasized value-added agriculture with half-billion dollar investments like High Plains Processing and CJ Schwan's, and noted food security as national security.

Governor Rhoden declared that "national security is South Dakota's next big industry," citing the B-21 bomber at Ellsworth Air Force Base, 350% growth in the cybersecurity industry, and companies like MMS Products receiving a $35 million Department of War contract for drone munitions. He recognized National Guard soldiers who supported ICE operations and border security, and proposed legislation to recognize tribal law enforcement officers under state law.

Governor Rhoden proposed replacing county property taxes with a half-cent sales tax option as a local government reform, and called for creating a State Apprenticeship Agency for more flexible workforce training. He announced legislation to recognize tribal law enforcement under state law and emphasized government efficiency by highlighting the state's third-lowest SNAP error rate and minimal Medicaid payment errors.

Governor Rhoden highlighted $189 million in federal Rural Health Transformation funding as a major win, focusing on workforce development, telehealth, community health workers, and behavioral health integration. He emphasized that the plan would not create unsustainable programs but would focus on 21st-century solutions. He also noted the state's SUNBucks summer feeding program for children.

Governor Rhoden proposed cutting owner-occupied property taxes by giving counties the option to replace the county property tax share with a half-cent sales tax, modeled for every county. He emphasized local flexibility rather than mandates and announced plans to host property tax town halls in hard-hit areas. He noted South Dakota has the second most competitive tax system in America and lowest unemployment rate.

Governor Rhoden detailed Operation Prairie Thunder results, including 63 illegal aliens handed to ICE custody, 9 cartel or gang members apprehended, and expanded 287(g) agreements with Highway Patrol and Department of Corrections. He emphasized that troopers "enforce the law and hand that individual over to the proper authorities" when encountering people in the country illegally.