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House approves spending authority for Rural Health Transformation Program

Representative Drew Peterson of Salem speaks in favor of HB 1044 on the House floor on Monday, January 26, 2026.
SDPB/SD Network
Representative Drew Peterson of Salem speaks in favor of HB 1044 on the House floor on Monday, January 26, 2026.

The state is one step closer to launching the Rural Health Transformation Program. The House of Representatives has granted the state the authority to spend hundreds of millions of federal dollars for the first two years of the five year program.

During the debate, Rep. Drew Peterson of Salem shared a personal story. He said access to prenatal care saved his wife and son when complications were discovered during pregnancy, and that approving this program can help many more rural families.

“If we want to talk about deficits and things like that, let’s go for it. This is not that bill," Peterson said Monday. "Whether we spend this money in South Dakota or California or Texas, this money’s getting spent. We can serve our communities with these dollars. We can help keep these facilities open in our communities so we can continue to allow people to live in rural communities with a high quality of life.”

Though several lawmakers continue to express concerns over the federal deficit and legislative authority over the state budget, others maintain the program could yield once-in-a-lifetime improvements for rural areas.

The House voted 56 to 11 in favor of moving the bill forward. The full debate is available in the video below from 2:23:30 - 3:03:02.

HB 1044 heads next to the Senate.

Jackie Hendry is a special correspondent with SDPB based in Sioux Falls. Her coverage interests include the many ways public policy impacts child welfare, elder care, health and education.