Revitalizing Small Towns

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Revitalizing Small Towns

By: Gov. Larry Rhoden
August 21, 2026

There's something about a small town. You walk into a local restaurant, and they greet you by name. You know exactly what you're going to order without opening the menu. You make small talk with the folks at the next table over about the kids or about the pastor's sermon, and it's easy conversation because you've known them for years. That's the way of life that I grew up with.

But in recent years, our small towns have gotten smaller - too small in many cases. Those local restaurants and shops have been dying out. And in some places, the local hospitals and schools have followed suit. This seemed like a problem with no end in sight - until the COVID pandemic brought a surge of new folks to South Dakota. For the first time in decades, many of our small towns actually grew!

And now, the Rhoden-Venhuizen Administration is seizing on that momentum to make crucial investments in small town South Dakota.

It began with a couple key initiatives during the Noem-Rhoden Administration. South Dakota came out of COVID stronger than any other state because we were the only state that never shut down, and our strong economy led to record-breaking tax revenues. Well, we didn't spend that money frivolously. We invested it wisely.

Over the last several years, we've invested nearly $400 million to wire every corner of South Dakota with high-speed broadband. Governor Janklow is famous for wiring our schools sooner than pretty much anywhere in the country - and we've gone far beyond that. Now, you can get high speed internet anywhere. And in the 21^st Century economy, that means that anyone can run a small business out of their living room, whether they're in Sioux Falls or my hometown of Union Center. Too often, folks leave small towns because of loss of economic opportunity. That doesn't have to be the case anymore.

And the single biggest investment of the Noem-Rhoden Administration was in local water projects. We invested over $900 million to modernize South Dakota's water systems, and much of that investment went to small towns who desperately needed a revitalization. I'm proud to have been part of that effort.

My administration is carrying this revitalization of our rural communities forward. Here's one thing I'm especially excited about: our Rural Health Transformation initiative.

We are building a stronger, more connected health care system for South Dakotans. In just the last few days, we announced an additional $90 million in grants to modernize technology in rural health care. These investments will modernize our health care and make sure more of our citizens can access the very best care while keeping their data secure.

This opportunity goes far beyond just our rural hospitals. We're investing in dentists, mental health, and bringing health care professionals to rural communities. We're giving these rural health systems access to opportunities like cybersecurity. And this isn't a one-time flash in the pan - we received $189 million from the Trump Administration this year, and we'll continue to see nearly a billion dollars over a five-year period.

The Rural Health Transformation initiative lays the foundation for healthier communities over the long term. More importantly, it helps revitalize our rural way of life. If folks can get the care they need in the small town they grew up in, why leave?

I will continue working to revitalize rural South Dakota. My team is already looking ahead to next legislative session and scoping out opportunities. I can't wait to keep working hard for you!