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Senate passes SB 220, a $7.3 billion ongoing budget that includes funding for Medicaid expansion
Summary
The South Dakota Senate passed Senate Bill 220 on March 13, approving the general appropriations (G) bill for fiscal 2026 that sets general, federal and total spending levels and includes a $33.7 million allocation to pay for Medicaid expansion beginning in fiscal 2026. The bill passed 34–1 and was delivered to the governor.
Pierre, S.D. — The South Dakota Senate approved Senate Bill 220, the general appropriations bill for fiscal year 2026, on March 13, 2025, passing the measure 34–1.
SB 220 sets the state's ongoing budget for fiscal 2026 and lays out the Legislature's chief spending plan: $2.5 billion in general funds, about $3.1 billion in federal fund expenditure authority and $7.3 billion in total funds. The bill allocates $33,700,000 to cover the full cost of Medicaid expansion beginning in fiscal year 2026 and designates money for state employee pay, K–12 and technical college increases, and one-time maintenance and infrastructure needs.
Supporters described SB 220 as a balanced budget that uses one-time funding for one-time expenses and ongoing money for ongoing obligations. Senator Otten, who led the Appropriations discussion, framed the bill as the result of weeks of negotiation and staff work, praising legislative fiscal staff and saying the chamber had produced "a balanced budget that uses 1 time funding for 1 time expenses and ongoing funding for ongoing expenses." Senator Lopke outlined specific allocations in the bill, including the 1.25% increases for K–12 and technical colleges, health care providers, and state employees, and reiterated the $33.7 million Medicaid expansion allocation.
Debate touched on restored and reduced funding across many programs. Senators noted restorations for developmental disability reimbursement, family support programs, literacy initiatives, public broadcasting and veteran services while acknowledging cuts in other areas that were not fully restored. Senator Larson highlighted restored funding for public broadcasting and several health and veteran services programs but also identified significant cuts that remain in programs like the dual credit program and certain prevention and TANF-related amounts. Senator Carley and other senators credited cooperative work between the executive branch, appropriations committee and fiscal staff in producing the bill.
The final roll call produced 34 yeas and 1 nay. The president declared SB 220 passed. The journal records that Senate Bills 55 and 220 were delivered to the governor for approval at 1:10 p.m. on March 13, 2025.
