March 13, 2025, update:
South Dakota House members failed to override Gov. Larry Rhoden’s veto of a childcare assistance bill Thursday (March 13, 2025), with the vote falling short of the required two-thirds majority.
The voted was 27-43 against the override of House Bill 1132.
House Bill 1132 would have allowed childcare workers to qualify for assistance with incomes up to 300% of the federal poverty level, higher than the 209% percent for other applicants.
Democrats argued the measure would address critical staffing shortages in childcare facilities. Republicans opposing the measure raised concerns about unfair industry preferences and the lack of additional funding.
March 13, 2025:
South Dakota Governor Larry Rhoden VETOED (March 12, 2025) HB 1132, which would have expanded the child care assistance program beyond the low-income families that it is meant to prioritize. Rhoden outlined the reasons for his VETO in a letter to the House of Representatives. You can find a copy of the letter here.
“House Bill 1132 shifts South Dakota’s child care assistance program away from its core mission,” wrote Rhoden in the letter. “Currently, the program is designed as a safety net to help low-income families cover child care costs while they work toward self-sufficiency. This bill would give child care workers preferential treatment, by allowing them to receive this aid at a higher income level.”
The Department of Social Services has been actively implementing solutions to address the child care shortage in South Dakota, including:
- Shifted to weekly payments for child care assistance, which aligns with industry standards;
- Raised reimbursement rates by 18% to better compensate providers;
- Launched the ChildCare605 Campaign highlighting the value of child care professionals;
- Invested $115 million in stabilization grants, tuition relief, and expansion;
- Gave scholarships for free training to 130 providers, funding 47 associates degrees;
- Provided the Pathways to Professional Development career ladder to recognize child care professionals’ growth;
- Launched the Early Childhood Enrichment Resource Hub to provide tools, policies, and curriculum resources for educators;
- Gave free training and CPR certification for thousands of Early Childhood Enrichment System providers;
- Trained child care administrators on business and leadership skills; and
- Provided coaching, grants, and resources to improve program quality through Quality Recognition System.
“The Department of Social Services has been actively implementing solutions to support the child care industry and workforce. These solutions focus on sustainable approaches and do not involve expanding our state’s safety net program beyond its intended purpose,” continued Governor Rhoden. “The state’s role in promoting our child care workforce should be supporting economic development and encouraging private sector solutions – not broadening government safety nets into permanent workforce subsidies.”
Rhoden has signed 125 bills and VETOED one this legislative session.
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