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State of the State: 2025 vs 2026
Kristi Noem (2025) to Kristi Noem (2026)
Leadership Transition Reshapes South Dakota's State Priorities
The most significant shift between the 2025 and 2026 State of the State addresses is the change in governor itself. Kristi Noem delivered the 2025 address as she prepared to leave for her confirmation as U.S. Secretary of Homeland Security, while Larry Rhoden, her former Lieutenant Governor, delivered the 2026 address as the new governor. While both leaders share a broadly conservative philosophy, Rhoden's address is notably more pragmatic, policy-specific, and focused on governance mechanics, while Noem's was more ideological, celebratory, and nationally oriented. Rhoden explicitly emphasized civility as a cornerstone of his administration and described a collaborative, convening-based leadership style — a subtle but clear departure from Noem's more combative, personality-driven approach.
Property tax relief emerged as a major new priority under Rhoden, who proposed allowing counties to replace their share of property taxes with a half-cent sales tax and pledged to hold town halls in hard-hit areas like Sioux Falls, the Black Hills, and Clay, Turner, and Union counties. This was entirely absent from Noem's 2025 address. Rhoden also introduced a sweeping national security as economic development strategy, declaring that "national security is South Dakota's next big industry," highlighting the $35 million Department of War contract for MMS Products' drone warheads, the B-21 bomber coming to Ellsworth Air Force Base, and the state's 350% growth in cybersecurity over the past decade. He also announced $189 million in federal funding for a Rural Health Transformation Plan — a five-year investment that was a centerpiece of his healthcare agenda and far more specific than Noem's broader healthcare talking points.
Criminal justice and public safety took on a very different character under Rhoden. While Noem focused on border security deployments and natural disaster response, Rhoden detailed Operation: Prairie Thunder, which yielded 432 individuals brought into custody, over 1,000 drug charges, 63 illegal aliens handed to ICE, 9 cartel or gang members apprehended, and a record 207-pound meth bust. He also discussed the new prison under construction in Sioux Falls, the women's prison opening in Rapid City, the Prison Seminary Model for faith-based rehabilitation, and legislation to protect law enforcement from doxxing. Rhoden's approach to immigration was more measured — framing it as a byproduct of routine law enforcement rather than Noem's rhetoric of an "existential threat" and "invasion."
Several Noem priorities faded or disappeared entirely. Her extensive discussion of COVID-era freedom decisions, Second Amendment victories, Judeo-Christian values, the Mount Rushmore fireworks as a cultural statement, the birth rate as a top-10 priority, and the Bright Start program for mothers and infants were all absent or greatly diminished. Noem's proposed Education Savings Accounts were replaced by Rhoden's opt-in to the Trump Administration's school choice program through the "One Big Beautiful Bill," with implementation targeted for January 1, 2027. Rhoden also introduced new education initiatives like a bill for school boards to find alternative settings for disruptive students, a new welding and machining facility at Southeast Tech, and First Lady Sandy Rhoden's "South Dakota Rising" initiative addressing cell phones in classrooms.
New Priorities in 2026
- +Property tax relief through a proposal allowing counties to replace their share of property taxes with a half-cent sales tax, with town halls planned in Sioux Falls, the Black Hills, and several counties
- +Declaring national security as South Dakota's 'next big industry,' highlighted by a $35 million DoD contract for MMS Products' drone warheads and the B-21 bomber coming to Ellsworth AFB
- +Operation: Prairie Thunder — saturation patrols yielding 432 arrests, 1,000+ drug charges, 63 illegal aliens handed to ICE, and a record 207-pound meth bust
- +$189 million in federal funding for a five-year Rural Health Transformation Plan including Certified Community Behavioral Health Clinics and regional EMS hubs
- +Prison construction and rehabilitation reform, including the Prison Seminary Model, a new Sioux Falls prison under construction, and a women's prison opening in Rapid City
- +Anti-doxxing legislation to protect law enforcement officers, judges, legislators, and statewide officials by removing personal information from public voter files
- +State Apprenticeship Agency legislation to give South Dakota more flexibility to structure apprenticeships for businesses
- +Legislation to stop abortion pills from being mailed into South Dakota, framed as a key pro-life enforcement priority
- +Suppressor deregulation effort as part of a national movement, working with legislators including Senator Crabtree
- +First Lady Sandy Rhoden's 'South Dakota Rising' initiative focused on cell phones in classrooms and promoting sound mind and body
- +School board flexibility legislation to find alternative settings for disruptive students
- +Recognition of tribal law enforcement under the state law definition of 'law enforcement officer'
- +GRIT task force recommendation to expand SecureSD cybersecurity program from cities and counties to nonprofit utilities like rural water systems
- +Dakota BioWorx bioprocessing development in Brookings and new industrial parks in Aberdeen and Watertown as Future Fund investments
- +Opting into the Trump Administration's school choice program through the One Big Beautiful Bill for implementation by January 1, 2027
Dropped from 2025
- −COVID-era freedom narrative — Noem's extensive discussion of South Dakota being the only state that never closed businesses or churches was entirely absent
- −Education Savings Accounts (ESAs), which Noem planned to institute with legislative leaders Odenbach and Mehlhaff, were not mentioned by name
- −South Dakota's highest-in-nation birth rate as a standalone policy priority and the Bright Start program supporting 600+ mothers and 500+ infants and toddlers
- −The Freedom Works Here workforce recruitment campaign, which Noem credited with reducing open jobs by 7,000 and recruiting 1,100 nurses
- −Detailed discussion of Judeo-Christian values as a foundational national principle, including the extended George Washington quotation
- −South Dakota's Nest Predator Bounty Program and Second Century Habitat Initiative as signature conservation programs
- −The new Shooting Sports Complex near Rapid City, which Noem said would open later that year
- −The $200,000 GOED grant to the South Dakota Ag Foundation for the Keep Farmers Farming program (Rhoden extended support but without the specific dollar amount)
- −Noem's personal border visits and eight National Guard deployments to the southern border framed as a centerpiece policy
- −The Sturdy initiative teaching students grit and mental resilience
- −Bel Brands doubling production capacity as an agriculture-economy highlight
- −South Dakota winning the Governor's Cup as top state for economic development projects
Shifted Emphasis
- ↔Immigration enforcement shifted from Noem's sweeping 'invasion' and 'existential threat' rhetoric to Rhoden's pragmatic framing — troopers encounter illegal aliens during routine crime enforcement and 'hand that individual over to the proper authorities'
- ↔Education policy shifted from Noem's focus on eliminating Critical Race Theory and launching ESAs to Rhoden's emphasis on math standards reform ('replacing common core with common sense'), the $6 million Science of Reading investment leveraging $54 million in federal dollars, and the federal school choice program
- ↔Second Amendment advocacy continued but shifted from Noem's broad celebration of past achievements (Constitutional Carry, Stand Your Ground) to Rhoden's specific forward-looking proposal to deregulate suppressors
- ↔Economic development shifted from Noem's broad 'lowest unemployment in history' narrative to Rhoden's targeted strategy around national security industries, Future Fund investments in bioprocessing and industrial parks, and value-added agriculture like High Plains Processing and CJ Schwan's
- ↔Healthcare evolved from Noem's general mentions of telehealth and nurse recruitment to Rhoden's highly specific $189 million Rural Health Transformation Plan with behavioral health integration, chronic disease management, and Certified Community Behavioral Health Clinics
- ↔Agriculture shifted from Noem's focus on protecting ag from China and opening new markets to Rhoden's emphasis on the loss of 3,600 family farms in the past decade and food security as national security
- ↔Cybersecurity evolved from Noem's framing of banning TikTok and enhancing Dakota State University to Rhoden declaring national security as the state's 'next big industry' with 350% cybersecurity growth cited
- ↔Public safety shifted from Noem's focus on natural disaster response (1,000-year flood heroism, dam infrastructure) to Rhoden's emphasis on law enforcement operations, anti-doxxing protections, and correctional system reform
- ↔Leadership tone shifted dramatically from Noem's personality-driven 'Top 10' list format with extensive personal and family narrative to Rhoden's collaborative 'power to convene' philosophy emphasizing civility and bipartisan cooperation
- ↔Outdoor recreation maintained importance but shifted from Noem's detailed program-by-program celebration to Rhoden's focus on youth hunting and fishing expansion, including opening Capitol Lake to youth mentored fishing
Policy Topics Addressed
Affordability
Governor Rhoden proposed cutting owner-occupied property taxes by giving counties the option to replace the county property tax share with a half-cent sales tax, modeled for every county. He emphasized local flexibility rather than mandates and announced plans to host property tax town halls in hard-hit areas. He noted South Dakota has the second most competitive tax system in America and lowest unemployment rate.
Agriculture
Governor Rhoden highlighted the loss of 3,600 family farms in the past decade and extended support for the Keep Farmers Farming initiative to help with estate and transition planning. He emphasized value-added agriculture with half-billion dollar investments like High Plains Processing and CJ Schwan's, and noted food security as national security.
Economy & Jobs
Governor Rhoden emphasized South Dakota's strong economic fundamentals including the second most competitive tax system, second least regulations, lowest unemployment rate, and growing incomes exceeding the national average. He proposed cutting owner-occupied property taxes through a local option sales tax replacement and highlighted national security as the state's next big economic development focus, citing MMS Products' $35 million drone munitions contract.
Education
Governor Rhoden highlighted the Science of Reading initiative backed by a $6 million state investment leveraging $54 million in federal dollars, rewritten reading standards, and reformed teacher training. He announced common core math standards being replaced with 'common sense' standards, celebrated the federal school choice opportunity through the One Big Beautiful Bill, and proposed a bill giving school boards more flexibility to address disruptive student situations.
Environment & Energy
Governor Rhoden did not make energy a major focus but mentioned the state's work on cybersecurity for rural infrastructure including water systems, and briefly touched on tourism and outdoor recreation as economic drivers.
Government Reform
Governor Rhoden proposed replacing county property taxes with a half-cent sales tax option as a local government reform, and called for creating a State Apprenticeship Agency for more flexible workforce training. He announced legislation to recognize tribal law enforcement under state law and emphasized government efficiency by highlighting the state's third-lowest SNAP error rate and minimal Medicaid payment errors.
Healthcare
Governor Rhoden announced South Dakota received $189 million in federal Rural Health Transformation funding — higher than the $100 million per year expected. The plan focuses on workforce development, Certified Community Behavioral Health Clinics, regional EMS hubs, and integrating behavioral health into primary care. He emphasized the state would not create unsustainable programs, urging quick legislative authorization to potentially be 'the first state in the nation to authorize this funding.'
Housing
Governor Rhoden did not make housing a significant focus of his address, instead concentrating on property tax relief, healthcare, and public safety.
Immigration
Governor Rhoden detailed Operation Prairie Thunder results, including 63 illegal aliens handed to ICE custody, 9 cartel or gang members apprehended, and expanded 287(g) agreements with Highway Patrol and Department of Corrections. He emphasized that troopers "enforce the law and hand that individual over to the proper authorities" when encountering people in the country illegally.
Infrastructure
Governor Rhoden highlighted the GRIT task force assessing infrastructure resilience to disasters, system failures, and cyber threats, and recommended expanding the SecureSD cybersecurity program to rural water systems. He emphasized healthcare infrastructure through $189 million in federal rural health transformation funding and proposed a new welding and machining facility at Southeast Tech.
Public Safety
Governor Rhoden detailed Operation Prairie Thunder results: 432 individuals brought into custody, over 1,000 drug charges, nearly 250 warrants executed, 38 DUIs, 63 illegal aliens handed over to ICE, 9 cartel/gang members apprehended, and a record 207-pound meth bust. He announced continued saturation patrols, expansion of 287(g) agreements, and proposed legislation to protect law enforcement officers' personal information from doxxing. He honored Trooper Emily Metzger with the Governor's Award for Heroism for deliberately initiating collisions to stop a wrong-way driver.
Social Services
Governor Rhoden highlighted $189 million in federal Rural Health Transformation funding as a major win, focusing on workforce development, telehealth, community health workers, and behavioral health integration. He emphasized that the plan would not create unsustainable programs but would focus on 21st-century solutions. He also noted the state's SUNBucks summer feeding program for children.
Tax & Budget
Governor Rhoden proposed allowing counties to replace their share of property taxes with a half-cent sales tax as a local option, not a mandate. He emphasized the state's second-most-competitive tax system in America, second-least regulations, and lowest unemployment rate. He positioned the proposal as empowering local decision-makers and noted the areas with the biggest property tax increases also attract the most visitors, allowing tourist revenue to offset property tax reductions.
Technology
Governor Rhoden declared national security as South Dakota's "next big industry," highlighting cybersecurity growth of 350% over the past decade (second-fastest in the nation), Dakota State University's cybersecurity leadership, and MMS Products' $35 million drone munitions contract. He proposed expanding the SecureSD cybersecurity program to protect rural water systems and other nonprofit utilities from cyber threats.
Veterans & Military
Governor Rhoden declared that "national security is South Dakota's next big industry," citing the B-21 bomber at Ellsworth Air Force Base, 350% growth in the cybersecurity industry, and companies like MMS Products receiving a $35 million Department of War contract for drone munitions. He recognized National Guard soldiers who supported ICE operations and border security, and proposed legislation to recognize tribal law enforcement officers under state law.