South Dakota Rural Strong Grant

Summary

South Dakota Rural Strong Grant (RFP# 26-09RHT-001) is part of the Rural Health Transformation Program (RHTP) led by the South Dakota Department of Health. The grant provides up to $31,750,000 for the first budget period, supporting operational and strategic planning, service line expansion, care coordination infrastructure, and workforce support for rural healthcare providers. Eligible applicants are Medicaid-enrolled hospitals, Federally Qualified Health Centers (FQHCs), Rural Health Clinics (RHCs), tribal 638 clinics, behavioral health clinics, and dental clinics. Allowable fund uses include expansion of services, infrastructure improvements, strategic partnerships, and minor renovations (excluding new construction/major remodeling). Proposals must include sustainability plans and detail activities in line with program goals. Financial incentives must be tied to a minimum five-year service commitment. Reporting is required monthly and annually. Awarded $31.5M to 28 of 79 applicants (announced 7/23/2026).

Eligibility

Medicaid-enrolled hospitals, Federally Qualified Health Centers (FQHCs), Rural Health Clinics (RHCs), tribal 638 clinics, behavioral health clinics, and dental clinics. Applicants outside rural areas must demonstrate benefit to rural South Dakotans.

Requirements Checklist

• Applicants submit proposals for operational planning, service expansion, infrastructure, strategic partnerships, care coordination, and workforce support. Funding excludes new construction/major remodeling; minor renovations related to program goals allowed with CMS approval. Proposals must detail activities, sustainability, and alignment with program goals, with a minimum five-year service commitment for incentive-supported positions. Reporting required monthly and annually.