Gov. Rhoden Casts Vision and Establishes Guardrails for Future Fund

PIERRE, S.D. – Today, Governor Larry Rhoden signed Executive Order 2026-03, which establishes guardrails and casts a vision on how he intends to use the Future Fund during his administration.

“Let me be clear: I support economic growth. That growth should be bold enough to seize opportunity and wise enough to prepare for the future responsibly,” said Governor Larry Rhoden. “This Executive Order is the responsible way to prepare for the future. Much of it is a direct reflection of how we do business today, and it’s a promise for how my administration will administer Future Funds going forward. This is a great step to keep South Dakota Open for Opportunity.”

The Employer’s Investment in South Dakota’s Future Fund, commonly called “the Future Fund,” was established by the Legislature in 1987.Over 1,600 projects have been supported by the Future Fund since then, including the Build Dakota Scholarship, the Sanford Underground Research Facility, support for the Ellsworth Air Force Base, hundreds of South Dakota’s most successful businesses, and, more recently, new business parks in Aberdeen and Watertown and Dakota BioWorx in Brookings.

Governor Rhoden is committed to the accountable administration of the Future Fund which include some of the following guard rails:

• Each Future Fund grant will be awarded on a reimbursement basis, requiring receipt of itemized invoice of expenditures and reasonable proof of payment prior to any disbursement of funds;
• The Governor’s Office of Economic Development (GOED) should require a matching commitment or in-kind consideration for the benefitted entity when feasible;
• Each agreement shall require a grant recipient to have a conflict of interest policy in place;
• Each grant must have a written, signed agreement prior to disbursement of funds;
• GOED shall ensure that all executed Future Fund agreements are posted on OpenSD in compliance with SDCL 1-27; and
• GOED shall provide a report to either the Joint Committee on Appropriations or the Interim Committee on Appropriations on a biannual basis about each Future Fund award.

“These guardrails ensure we continue investing in the right projects, at the right place, and at the right time,” said GOED Commissioner Bill Even. “Thanks to Governor Rhoden’s leadership, South Dakotans can have confidence that the Future Fund is being used both responsibly and transparently to promote the future growth of South Dakota.”

You can find more information about the Future Fund here.

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Thune: Regular Order, Bipartisan Results on Appropriations

“[M]y hope is that we’ll be able to build on the progress we’ve made this past year to get the appropriations process back to what it should be – an open process that every senator can participate in.”

WASHINGTON — U.S. Senate Majority Leader John Thune (R-S.D.) today delivered the following remarks on the Senate floor: 

Click here to watch the video.

From Fox News, former SDGOP Executive Director Madison Sheahan has resigned from her current position as ICE Deputy Director to run for Congress in Ohio:

Madison Sheahan, the deputy director of U.S. Immigration and Customs Enforcement (ICE), is resigning from her role to run for Congress in Ohio, multiple federal law enforcement sources told Fox News.

The announcement was made internally this morning, the sources added. Sheahan is running for Ohio’s 9th Congressional District, currently represented by Democrat Rep. Marcy Kaptur, who assumed office in 1983 and is the longest serving woman in Congress. Kaptur was re-elected in November 2024, despite many of the counties in the district voting in favor of President Donald Trump that year.

“No Excuses. Let’s Get It Done,” read a message on Sheahan’s campaign website. “Former ICE Deputy Director Madison Sheahan is fighting to protect American jobs, American paychecks, and American values in Ohio’s 9th Congressional District.”

Read the entire story here.

Our state legislature is taking up all the important issues.  Such as how they want people to use cash because it can’t be tracked by the gubmint. And how businesses should offer a discount if someone rolls up with a suitcase of cash to buy a car:

House Concurrent Resolution 6004

Title:          encouraging the use of physical cash in transactions.
Sponsors:            Representatives Sjaarda (prime), Baxter, Greenfield, Jensen (Phil), and Jordan and Senator Perry

A CONCURRENT RESOLUTION encouraging the use of physical cash in transactions.

WHEREAS, payment with physical cash prevents tracking and controlling purchases; and

WHEREAS, payment with physical cash saves businesses money on transaction fees; and

WHEREAS, payment with physical cash ensures more money stays in this state; and

WHEREAS, payment with physical cash ensures the unbanked can participate in the South Dakota economy; and

WHEREAS, the use of physical cash in transactions makes this state more resilient in case of a natural disaster or emergency situation;

NOW, THEREFORE, BE IT RESOLVED, by the House of Representatives of the One Hundred First Legislature of the State of South Dakota, the Senate concurring therein, that the citizens of this state are strongly encouraged to pay with physical cash whenever and wherever possible; and

BE IT FURTHER RESOLVED, that the citizens of this state are strongly encouraged to support businesses that offer a discount for using physical cash; and

BE IT FURTHER RESOLVED, that businesses in this state are strongly encouraged to offer a discount for using physical cash in transactions.

Follow this legislation here.

Is the legislature really that worried about gubmint tracking and controlling purchases, and securing rights for the “unbanked?”  And really, if we’re worried about the state being “more resilient in case of a natural disaster or emergency situation,” then why aren’t they advocating for the use of gold doubloons?  Would “cash only” be a policy that Baxter would initiate if she won Secretary of State?

Where’s Logan Manhart on this? Because this opposition to electronic transactions is kind of the opposite of all the pushing he’s done on bitcoin. Or does he have to ask Toby Doeden what to say about it?

*sigh*.  This is just day three, isn’t it?

From the Freedumb Caucus’ recent press release, the group had a statement where they went after Governor Rhoden in the state of the state address and lamented that the state is “too dependent on federal money.”

Aaron Aylward (R-), former Chair of the Freedom Caucus, argued that “’federal dollars’ do not come from some magic pot of money from elsewhere – these are our income taxes, as well as the printed money that causes inflation and are a large part of the reason that everyone demands ‘cost of living’ increases.” Also, the caucus pointed out that federal dollars are not free dollars and that leaning into Washington’s purse strings inevitably compromises South Dakota’s sovereignty.

“Federal dependency is a drug that masks the underlying rot of a growing state bureaucracy,” said Representative Tina Mulally (R-Rapid City), Treasurer of the South Dakota Freedom Caucus. 

Read that here.

If the Free-dumb caucusers believe this, they should have a word with their vice chairman, Senator John “California” Carley, about his business returning all the free COVID cash his business received.

Carley’s entrepreneurial journey began in 1995 when he founded Trinet Internet Solutions Inc. As the company’s president, he has led the way in providing innovative digital marketing solutions to businesses, especially Christian ministries. 

(Read that here.)

I mean, Tina Mulally did just write in their release that “Federal dependency is a drug that masks the underlying rot.” 

So, maybe the freedom caucusers should lead by example, and start with their vice-chair Carley giving all that cash back?

Rounds, Cassidy and Colleagues Blast Tim Walz for Rampant Childcare Fraud, Demand Accountability for American Taxpayers

WASHINGTON – U.S. Senators Mike Rounds (R-S.D.), Bill Cassidy (R-La.) and the entire Senate Republican Conference are demanding accountability from outgoing Minnesota Governor Tim Walz amid widespread reports of fraud and abuse of federal child care funding in Minnesota.

“The state’s apparent negligent management of federal funds raises significant concerns about the adequacy of the state’s oversight, verification, and compliance systems for safeguarding taxpayer dollars intended to support vulnerable children and working families,” wrote the Senators. “Unfortunately, these latest reports appear to reflect only the tip of the iceberg.”

“The Constitution grants Congress the power of the purse, and the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously,” continued the Senators.

This effort is in conjunction with the Trump administration, which has paused child care funding to Minnesota and other states pending verification and audits of how funds were used. There is also a current federal investigation into large-scale fraud in Minnesota’s social services programs.

Rounds and Cassidy are joined by Majority Leader John Thune (R-S.D.) and U.S. Senators John Barrasso (R-Wyo.), Mike Crapo (R-Idaho), Susan Collins (R-Maine), Jim Banks (R-Ind.), John Kennedy (R-La.), Ted Cruz (R-Texas), Rand Paul (R-Ky.), Ashley Moody (R-Fla.), Tim Scott (R-S.C.), Tommy Tuberville (R-Ala.), Roger Marshall (R-Kan.), James Lankford (R-Okla.), Lindsey Graham (R-S.C.), Shelley Moore Capito (R-W.Va.), Pete Ricketts (R-Neb.), Ted Budd (R-N.C.), Kevin Cramer (R-N.D.), Joni Ernst (R-Iowa), Cynthia Lummis (R-Wyo.), Deb Fischer (R-Neb.), Mike Lee (R-Utah), Jim Risch (R-Idaho), Tom Cotton (R-Ark.), Eric Schmitt (R-Mo.), Markwayne Mullin (R-Okla.), Bernie Moreno (R-Ohio), Katie Britt (R-Ala.), Marsha Blackburn (R-Tenn.), Rick Scott (R-Fla.), John Cornyn (R-Texas), Tim Sheehy (R-Mont.), Jon Husted (R-Ohio), Thom Tillis (R-N.C.), John Hoeven (R-N.D.), Bill Hagerty (R-Tenn.), Lisa Murkowski (R-Alaska), Cindy Hyde-Smith (R-Miss.), Dan Sullivan (R-Alaska), Josh Hawley (R-Mo.), Jim Justice (R-W.Va.), Steve Daines (R-Mont.), Ron Johnson (R-Wis.), Jerry Moran (R-Kan.), Todd Young (R-Ind.), John Curtis (R-Utah), Dave McCormick (R-Pa.), Mitch McConnell (R-Ky.), Roger Wicker (R-Miss.), John Boozman (R-Ark.) and Chuck Grassley (R-Iowa).

Read the full letter HERE or below.

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Dear Governor Walz:

We write to express serious concern regarding recent reports and federal investigations alleging widespread fraud and misuse of federal funds within Minnesota’s state-administered child care assistance programs. The state’s apparent negligent management of federal funds raises significant concerns about the adequacy of the state’s oversight, verification, and compliance systems for safeguarding taxpayer dollars intended to support vulnerable children and working families. Unfortunately, these latest reports appear to reflect only the tip of the iceberg.

Federal prosecutors have been conducting a broader investigation of large-scale fraud in Minnesota’s social services programs. Some authorities estimate that billions in federal funds across various programs, including child care, nutrition, Medicaid, and housing assistance, may have been misappropriated since 2018. One example includes the “Feeding Our Future” scheme, where more than 50 individuals were convicted for diverting hundreds of millions of dollars in pandemic relief funds intended for school meals.

Under the leadership of President Trump, the U.S. Department of Health and Human Services (HHS) has acted promptly to freeze child care payments to Minnesota pending verification and audits of how funds were used. The Constitution grants Congress the power of the purse, and the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously. To that end, we are writing to request detailed responses to the following questions, on a question-by-question basis, no later than Thursday, January 22, 2026:

1. Please describe the state’s ongoing efforts to comply with federal directives to conduct a comprehensive audit of child care centers identified as high-risk.
   1. What is the state’s estimated timeframe to achieve full compliance?

2. Please detail any additional verification requirements Minnesota has adopted or plans to implement in the near term to support proof of legitimate use of federal child care payments. In your response, please specify whether these verification requirements apply to each federal funding stream used to support Minnesota’s child care programs, including the Child Care and Development Block Grant (CCDBG), COVID-19 pandemic relief funds, and any other sources of federal taxpayer dollars. Please also indicate whether any of the providers identified as high-risk receive Head Start or Early Head Start funding.

3. How often does the state conduct on-site monitoring, inspections, or investigative visits of licensed, registered, and state exempt child care providers that receive child care subsidies?

4. How many investigations has the state conducted since January 1, 2018, and what evidence of fraud has been uncovered?

4. 1. Please detail specific examples of fraudulent billing, including but not limited to billing for children who did not exist or were not present; falsifying attendance records and/or names; enrolling ineligible children to increase reimbursement; overbilling for services not provided; and using fake business structures to draw down additional public funds.

5. Please describe the prior compliance and enforcement efforts the state has undertaken to address concerns about accountability raised in previous federal audits documenting oversight shortcomings in Minnesota’s child care assistance program.

6. Please list all regulatory and oversight actions (as well as technology and systems improvements for fraud prevention) that the state has undertaken since January 1, 2018, in response to the findings of federal audits documenting the systemic misuse of welfare funds, including but not limited to the May 2025 HHS Office of Inspector General (OIG) audit report.

6. 1. Please include the dates of implementation and scope of all mandated reforms to comply with federal audits.

7. In the May 2025 HHS OIG audit report, the OIG made the following three recommendations: (1) recover identified overpayments; (2) strengthen monitoring of attendance records; and (3) implement real-time electronic attendance reporting, as previously recommended by the Legislative Auditor. As of the end of 2025, these recommendations remain open, indicating that they have not been completely adopted by the state. Why have these recommendations not been completely adopted by the state, and who made the decisions not to expeditiously move forward with adopting the OIG’s recommendations?

8. Please describe any additional reforms Minnesota has evaluated for potential implementation to prevent fraud in the state’s federally funded welfare programs, including but not limited to individual registration requirements, use of fingerprinting technologies, etc.

9. Please provide detailed documentation for all providers receiving federal child care funds from the state of Minnesota since January 1, 2018, including attendance records, licenses, inspection and monitoring reports, complaints, and investigations.

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Danny Brown Announces Candidacy for South Dakota House of Representatives, District 8

Madison, SD — Danny Brown today announced his candidacy for the South Dakota House of Representatives representing District 8. The campaign emphasizes healthy relationships, effective communication, and a work ethic grounded in integrity — values that have guided Brown’s 25‑year legal career and community service.

“I am committed to the community, dedicated to South Dakota,” Brown said. “Throughout my career, I have seen firsthand how building healthy relationships and communicating openly leads to real solutions. In Pierre, I will prioritize listening to the concerns of District 8 residents and working collaboratively with local leaders. By fostering trust and transparency, I will bring people together to address challenges—whether it’s supporting our schools, strengthening local businesses, or advancing policies that reflect our shared values. My commitment is to keep lines of communication open, respond promptly to constituent needs, and always act with integrity on behalf of District 8.”

A Record of Legal Leadership and Service

Brown has over 25 years of legal experience in both the public and private sectors. He currently serves as General Counsel at East River Electric Power Cooperative, a wholesale power provider headquartered in Madison, where he advises leadership and the board of directors, and actively supports strategic planning for the cooperative and its members. His work includes coordination on regulatory matters, contract review, and land and permitting issues central to South Dakota’s energy future.

Previously, Brown served the City of Sioux Falls as Senior Assistant City Attorney (2014–2022), providing counsel on complex civil matters, development negotiations, and policy implementation. Before his tenure with the city, he practiced law in Madison, ultimately becoming a partner at Lammers, Kleibacker & Brown, LLP (2000-2014).

Deep Community Roots

Brown has served on and worked with numerous local boards. For the past 15 years he has served as a member of the board of trustees for Madison Regional Hospital and as a past president of Trinity Lutheran Church. He has called Madison home for the last 26 years and Danny and his wife, Becky, are proud parents to three Madison High School graduates.

Education and Professional Memberships

Brown earned his Juris Doctor from the University of South Dakota School of Law and a Bachelor of Science in Public Administration from the University of Arizona. He is admitted to practice in South Dakota, the U.S. District Court for the District of South Dakota, and Minnesota.

Connect with the Campaign

Visit the campaign website at DannyBrownforSD.com, follow “@DannyBrownforSD” on X, and email DannyBrown@DannyBrownforSD.com

Senator Mike Rounds’ WEEKLY ROUND[S] UP:
January 5-11, 2026

Welcome back to the first Weekly Round[s] Up of 2026. After a well-spent holiday with friends and family, it was straight back to work in Washington, D.C. My week quickly filled with meetings, briefings and votes, setting the tone for a busy start to the new year. Outside of D.C., I also had the opportunity to travel and attend two events. One at the U.S.–Mexico border in Texas to learn more about the work being done there and another in Rapid City for a welcome home ceremony honoring the South Dakota Army National Guard. More on both of these events and the rest of my week in the Weekly Round[s] Up:

South Dakota groups I visited with: Rosebud Sioux Tribe Council and SD rancher Eric Jennings.

Met with South Dakotans from: Rosebud and Spearfish.

Other meetings: Rwandan Ambassador Mathilde Mukantabana; Amanda Eversole, CEO of Financial Services Forum; and USPS Inspector General Hull (more on that later!).

On Friday I visited the southern border in Texas with a few Senate colleagues. We met with Border Patrol Agents and discussed new improvements under the Trump administration. Under the previous administration, there were 10.5 million illegal border crossings, marking a record-high level of illegal immigration. Compare this to today, for the seventh consecutive month, U.S. Border Patrol has released zero illegal aliens into the United States.

Additionally, over the weekend I had the opportunity to attend a welcome home ceremony for The South Dakota Army National Guard’s 109th Engineer Battalion. This group started in San Diego, CA and transitioned to Eagle Pass, TX during their 13 month deployment. They operated in one of the most active and challenging regions along the southern border and assisted in the apprehension of more than 21,000 individuals attempting to cross the border illegally. The return of the 109th Engineer Battalion highlights the resilience and dedication of South Dakota National Guard Soldiers. 

Briefings: I attended two Senate Select Committee on Intelligence briefings, a Cyber Operations Quarterly Briefing and a classified briefing on Venezuela. Click [facebook.com/reel/871315982060672/?s=single_unit]here to watch my video on social media recapping what we learned (that we’re able to share!)

Senate Bible Study and Prayer Breakfast: On Tuesday I attended Senate Bible Study where we started a new study titled “Buoying Your New Year’s Resolution to Study the Bible.” I also attended our Senate Prayer Breakfast on Wednesday morning.

Votes taken:  6 – This past week I voted on multiple nominees including Keith Bass to be an Assistance Secretary of Defense, Joshua Simmons to be General Counsel of the Central Intelligence Agency, Sara Bailey to be Director of National Drug Control Policy, and Alexander Van Hook to be United States District Judge for the Western District of Louisiana (All Yeas).

Additionally, I voted Nay on both the Whitehouse Air Plan Approval South Dakota CRA and on the motion to discharge the Kaine War Powers Resolution (Venezuela).

Steps taken: 57,095 steps or 27.05 miles.

Videos of the Week:

I filmed videos after my meeting with Inspector General Hull on Thursday. Click the links to watch part one and part two.

Congressman and Gubernatorial candidate Dusty Johnson had a lot to say about Governor Rhoden’s State of the State address today in what might be some of his most critical commentary of the Rhoden Administration to date in the gubernatorial primary.

According to Hub City Radio in Aberdeen who interviewed Dusty Johnson on his take on the state of the state address, Congressman Johnson offered the following commentary:

I did pay attention to the State of the State Address. There really weren’t any big ideas there. I think there were some good meat and potatoes, but it really dovetails into what has been my big concern over the course of the last year for state government and that is that there’s just no big vision.  There’s just no strategy. There’s no plan. And the next 20 years in this state can be the best 20 years we’ve ever had. But it’s not going to happen by accident.

And in more taped comments, Dusty was also critical of the Governor’s property tax proposal, noting that it’s not property tax relief, but a transfer of wealth from rural counties to South Dakota’s larger cities:

Well, I think my biggest problem with the proposal is just a huge transfer of wealth outside of our rural economies and into Sioux Falls and Rapid. And that is not what our state needs right now. Now, you’re going to ask me, well, why is that? Well, let’s just take a look at Hot Springs and Rapid City, for example. Hot Springs people spend a lot of their money in Rapid City. Well, Rapid City people don’t spend any of their money in Hot Springs. And so what you see is that the taxable value in, the taxable sales in Pennington County are three times what they are in Fall River County, where Hot Springs is. Well, listen, we have a big property tax problem in Fall River County as well. But the governor’s plan would mean that a huge chunk of the money that people from Hot Springs are spending on that new sales tax he wants to impose would go to not reduce their own property taxes, but the property taxes of the big city people.

Go listen to the entire interview here, as the temperature of the Governor’s race gets turned up between the contest’s front runners.

Representative Jeff Bathke Announces Reelection Campaign for District 20 House

Mitchell, SD– State Representative Jeff Bathke announces his re-election campaign, representing District 20 and the great State of South Dakota. District 20 includes the communities and citizens of Jerauld, Sanborn, Miner and Davison Counties.
Representative Bathke has spent the last six months deployed to the Middle East, conducting operations in Kuwait, Saudi Arabia, Jordan, and Egypt. “I don’t like missing the 2026 Session, but maintaining stability in the Middle East has a direct effect on the residents of South Dakota. I am proud of our accomplishments here, and God willing, will return to South Dakota in the Spring.

Bathke currently serves as the Command Sergeant Major of the 650th Regional Support Group in Sloan, NV. He has completed two previous deployments, serving in several countries to include Kuwait, Iraq, Syria, and Jordan. “Considering the current activity in the Middle East, this has been a very interesting mission. We have troops in harm’s way across several countries and hope for the best, so we all come home safe.”

Bathke’s reliable presence in the legislature utilizes his experience in local and state government, as well as his military career. “In the last session, there were many bills related to state and local government, as well as prison construction and reform. Spending the first half of my career working in the SD Prison System, and the second half in Planning & Zoning and Emergency Management for Davison County, I found myself highly involved in legislative discussions. My goal is to leave this place a little better than I found it, for my five grandchildren.”

Bathke serves on the House Taxation and Local Government Committees. He uses a common-sense approach to maintain local control and eliminate un-needed government regulation. His previous accomplishments revolve around funding for 911, agricultural drainage, Veteran’s headstones, and the Veteran’s Cemetery. “I try to maintain regular contact with the local government leaders, small businesses, and school administrators, the true experts in the community”. Bathke sees the most important issues in 2026 as property tax relief, data centers, funding for the Big Three (Education, State Employees, and Healthcare Providers), and prison reform.

Representative Bathke can be reached at jeff.bathke@sdlegislature.gov