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Property Taxes, Healthcare & More: What’s at Stake This Legislative Session

AARP

Published January 22, 2026

The 2026 South Dakota legislative session is off and running and AARP South Dakota has Pierre covered for you!

South Dakota’s Budget

Let’s first go back to early December when Governor Larry Rhoden delivered his first budget address since assuming the role of Governor a year ago.

Governor Rhoden speaking to the South Dakota legislature in Pierre.

The governor’s budget proposal struck a tone of caution with very little opportunity for new spending. For the first time in many years, the budget proposal included no proposed increases for Medicaid providers, K-12 education or state employees.

The budget proposal is driven by a bleak revenue forecast for the current fiscal year (FY 26) and the upcoming fiscal year (FY 27). FY 2026 revenues are coming in $7 million below projections. Projected revenue growth for FY 2027 is $51.6 million. A total of $108 million in one-time money is available to spend based on savings projected in the current fiscal year (FY26) and the transfer of over $90 million in trust funds.

One of the highlights of the budget proposal is continued investment in Broadband Expansion. The budget proposes continuing to use available federal funds ($87 million) to complete the broadband project started under the Noem administration.

Legislative Session Gets Underway

On Tuesday, the 101st South Dakota Legislative Session officially opened with Governor Rhoden delivering his first State of the State address. The topics the Governor addressed include:

Property Tax Reduction Plans. The Governor highlighted his work on this issue last session and indicated his plan to allow counties to impose a half-cent tax to reduce property taxes in that specific county was a targeted approach and a commonsense plan that did not mandate an increase.
Economic Development. The Governor highlighted the need to be open to opportunities for economic development but the approach to those opportunities should be responsible and prepare for the future.
Rural Health Transformation Fund. The Governor highlighted the rural healthcare needs in the state and the opportunity to use the $183 million in Rural Health Transformation Fund to make a difference. He noted that early adoption of the items in the state’s grant proposal will bode well for future funds. He asked the Legislature to authorize the spending authority for these funds as the first bill that comes to his desk to sign.

As we move forward with the 2026 legislative session, here are some of the issues AARP South Dakota will be working on for you:

Most Popular

Voting access
Healthcare access
Consumer Protection
Property Tax
Home healthcare
Healthcare compacts

Keep reading every week to learn about these and many more issues during the 2026 South Dakota legislative session. If you ever have questions, you can email us at sdaarp@aarp.org.

Stay up-to-date with all the latest in Pierre by subscribing to our advocacy emails, where you’ll also get opportunities to contact your lawmakers on important issues. Sign up at aarp.org/getinvolved.

Catch a Cracker Barrel

South Dakota has a "citizen legislature," which refers to the fact that the members of our legislature are residents of the state who often have full-time occupations in addition to being a legislator.

cup of coffee sitting on a table in the foreground with a group of people in the background

AARP South Dakota often provides opportunities for you to contact lawmakers on important issues through our action alert emails. And certainly, you can call or email your legislators any time during the session.

Another great way for you to make your voice heard is to attend local legislative coffees or “cracker barrel” sessions held on the weekends when legislators are back in their home districts.

[Fun side note - the term "cracker barrel" comes from the days back when townspeople would gather around a barrel of soda crackers in country stores to share informal conversation].

The Associated School Boards organization keeps an ongoing list of legislative cracker barrel events currently scheduled in South Dakota communities. If you don’t see your community listed, talk with your legislators or your local Chamber of Commerce to see if any sessions will be scheduled during this legislative session.