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South Dakota Senate approves cut to tobacco prevention fund from $5M to $2M
Summary
The South Dakota Senate passed Senate Bill 54 to reduce the annual transfer to the Tobacco Prevention and Reduction Fund from $5,000,000 to $2,000,000. Supporters called it a budget 'right sizing'; opponents warned it will undermine prevention efforts aimed at youth and Medicaid clients.
Senate Bill 54, which reduces the annual transfer into the state Tobacco Prevention and Reduction Fund from $5,000,000 to $2,000,000, passed the South Dakota Senate on a 21-14 vote on Feb. 20, 2025.
The bill’s sponsor told senators the change is justified by falling tobacco use and called it a “right sizing” of the program’s budget. Opponents said reducing prevention funding risks reversing recent progress in youth and Medicaid tobacco-use statistics and urged lawmakers to preserve the $5 million commitment voters expected when the tax was increased in 2006.
Senator Howard, speaking as sponsor, said, “This will reduce that 5,000,000 down to 2,000,000.” He described declining tobacco-use rates in state surveys and argued the Department of Health will continue core prevention services, including the quit line, marketing and community programming, despite the cut. Howard told the chamber the reduction would also help cover higher-than-anticipated Medicaid costs in the current budget cycle.
Senator Jensen, a former certified prevention specialist, opposed the measure on prevention grounds. Jensen described prevention as measurable only by long-term statistics and warned of a “prevention roller coaster” if funding is cut: gains made with sustained messaging can be lost when programs lose steady funding. Jensen cited the Department of Social Services data that, he said, show roughly 50% tobacco use among Medicaid-eligible adults and argued that the full $5,000,000 equates to about $185 per Medicaid tobacco user, far less than the cost of treatment for tobacco-related disease.
Senator Miss Gimmons, a dentist, and Senator Peterson both said they opposed the reduction, warning that chewing tobacco and youth vaping remain problems that prevention programs target. Senator Carly and Senator Vojta spoke in favor, emphasizing budget priorities and noting the legislature faces rising Medicaid costs. Carly also referenced language on the Department of Health website describing the state tobacco control program’s focus on ecigarette prevention.
On final passage the roll call showed 21 yeas and 14 nays, and the president declared the bill passed.
Background: The $5,000,000 figure cited in debate traces to the 2006 tobacco tax increase and related ballot initiative that directed funding for education and prevention. Supporters of the bill argued South Dakota’s per-smoker prevention spending is above the national recommended average and that recent data show lower cigarette and e-cigarette use than earlier peaks.
Next steps: Having passed the Senate, the bill proceeds to the House for consideration if not already under concurrent consideration.
Details from the debate: Supporters pointed to decreased cigarette use among young adults (from 32% in 2014 to 7.8% in 2024 in testimony cited on the floor) and lower rates in high school and middle school cohorts. Opponents cautioned that vaping remains prevalent and that prevention messaging must continue to protect successive youth cohorts.
