# South Dakota Expands Behavioral Health Services

The Trump Administration and the State of South Dakota have jointly announced over **$13 million** in federal grants awarded on September 24, 2026, to expand behavioral healthcare services and establish a 24/7 mobile crisis response system targeting rural communities. These funds, distributed through the Rural Health Transformation (RHT) program and the Certified Community Behavioral Health Clinic (CCBHC) initiative, support modernization and infrastructure enhancements, workforce development, and crisis service capacity building for providers across South Dakota. This investment aims to strengthen rural healthcare infrastructure and improve access to behavioral health services in underserved areas.

- The grants focus on providers participating in South Dakota's CCBHC cohort, including Avera Behavioral Health and other regional counseling centers.
- Procurement professionals should note the emphasis on IT infrastructure upgrades and workforce expansion as key grant components, indicating opportunities for vendors specializing in healthcare technology and training services.
- This funding signals increased federal and state collaboration to address rural behavioral health needs, suggesting potential for future related procurements in crisis response and telehealth services.
- Organizations serving rural healthcare markets should evaluate how to align offerings with CCBHC modernization goals and the RHT program's priorities to position for upcoming funding rounds.

**Jurisdictions:** federal, sled
**Industries:** Healthcare
**Topics:** Grants & Funding
**Published:** September 25, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)
- U.S. Department of Health and Human Services (HHS)
- State of South Dakota
- Department of Social Services, South Dakota

### Vendors
- Avera Behavioral Health (CCBHC Cohort member)
- Brookings Behavioral Health and Wellness (CCBHC Cohort member)
- Capital Area Counseling (CCBHC Cohort member)
- Community Counseling Services (CCBHC Cohort member)
- Dakota Counseling Institute (CCBHC Cohort member)

### Key Quotes
> This $13 million awarded to South Dakota from the Rural Health Transformation Program, passed as part of the Working Families Tax Cuts Act, will expand access to behavioral health in the most rural parts of our state.
> — Sen. Mike Rounds

> Funding new approaches to advance technology and expand access to behavioral healthcare is a critical step toward achieving that vision for South Dakotans and I look forward to seeing RHTP investments drive equally transformative innovations for rural communities nationwide.
> — Dr. Mehmet Oz, Administrator, Centers for Medicare & Medicaid Services

> Mental health is a key component of quality health care, so we’re investing in all aspects of healthcare in our rural communities, including behavioral health. South Dakotans in rural communities will have the resources they need to receive the care they deserve.
> — Governor Larry Rhoden

### Sources
- [Trump Administration Announces $13 Million Investment to Expand Behavioral Healthcare and Create a 24/7 Mobile Crisis Response Service in South Dakota | CMS](https://www.cms.gov/newsroom/press-releases/trump-administration-announces-13-million-investment-expand-behavioral-healthcare-create-24-7-mobile) - CMS
- [News - Gov. Rhoden Awards Behavioral Health Grants through RHT](https://news.sd.gov/news?id=news_kb_article_view&sys_id=662fe5d9976fcf107fc1b480f053afb5) - SD