South Dakota Rural Strong Grant

Summary

South Dakota Rural Strong Grant (RFP# 26-09RHT-001), part of the state's Rural Health Transformation Program. The South Dakota Department of Health launched Rural Strong Grants for health care providers, awarding up to $31,750,000 in the first budget period. Eligible applicants include hospitals, FQHCs, RHCs, Tribal 638 clinics, behavioral and dental clinics enrolled with Medicaid. Allowable fund uses include expansion, infrastructure, strategic partnerships, care coordination, minor renovations (excluding new construction or major remodeling), and workforce support. Awarded $31.5M to 28 of 79 applicants (announced 7/23/2026).

Eligibility

Licensed hospitals, Federally Qualified Health Centers (FQHCs), Rural Health Clinics (RHCs), Tribal 638 clinics, behavioral health clinics, dental clinics enrolled with Medicaid. Applicants outside rural areas must demonstrate benefits to rural South Dakotans.

Requirements Checklist

• Applicants must submit proposals for initiatives that expand services, enhance infrastructure, foster strategic partnerships, improve care coordination, or support workforce recruitment and retention. Funding may not be used for new construction or major remodeling; minor renovations related to program goals are allowed with additional CMS approval. Proposals should detail activities, alignment with program goals, and sustainability plans. Financial incentives must be tied to a minimum five-year service commitment. Monthly and annual reporting is required.