South Dakota Freedom Caucus Blasts FY2027 Budget

The South Dakota Freedom Caucus is condemning the FY2027 general appropriations bill, calling it a rejection of the Republican platform’s commitment to limited government and fiscal discipline. The bill increases state spending by roughly $80 million and adds approximately 26 new full-time government positions compared to the prior year — and that’s before accounting for a last-minute $500,000 welfare expansion pushed through with Democratic and RINO support.

Representative Phil Jensen, Chair of the South Dakota Freedom Caucus.

Among the specific concerns raised during appropriations hearings: agencies attempting to retain funding for programs that no longer exist. When lawmakers eliminated the state hemp program, they expected its entire $350,000 annual appropriation to come off the books. Instead, the Department of Agriculture and Natural Resources asked to keep $150,000 — money tied to a program that is gone — to fund employees and departmental operations.

“You are eliminating the program, but you are essentially telling taxpayers that we are still going to keep taking a portion of that funding and use it on other items,” said a legislator during Joint Appropriations Committee hearings. “With the elimination of the program, I believe that all of that funding should be eliminated.”

The Department of Labor and Regulation made a similar request. The agency had received a five-year Digital Equity Capacity Grant in FY2025. The Trump administration canceled it in May 2025. The program was gone — but the department asked to keep both the federal fund authority and the full-time position created for it, quietly repurposing both for internal administrative functions without seeking a new appropriation from the Legislature.

Senator John Carley, Vice-Chair of the South Dakota Freedom Caucus

Representative Tony Randolph John Carley, Former Vice-Chair of the South Dakota Freedom Caucus

committee effectively ground to a halt. Members broke into caucus groups to confer. A representative issued a public rebuke. Leadership later apologized after realizing the same cut had been proposed weeks earlier. A separate motion to trim $100,000 was also rejected. Earlier in the session, Carley had attempted to adjust the Department of Tourism’s budget to reflect updated revenue projections — the Legislature’s own staff had revised expected sales tax growth from 5.2 percent to 4.4 percent — but the committee refused to lower the spending figure to match.

Representative Aaron Aylward, Former Chairman of the South Dakota Freedom Caucus

urged the Legislature not to approve the increase. Freedom Caucus members say SDPB has repeatedly aired content favorable to progressive policy positions at taxpayer expense. The funding increase passed regardless.

In a further break from conservative fiscal priorities, Rep. Erik Muckey (D) — with support from several Republicans — successfully added $500,000 in new ongoing TANF welfare funding to the budget during floor debate. Freedom Caucus members say the Temporary Assistance for Needy Families program is already funded and that expanding it on an ongoing basis through a floor amendment, with bipartisan cover, is exactly the kind of back-door spending growth the appropriations process is supposed to prevent.

One Freedom Caucus member noted the bitter irony: a minority Democrat, with help from Republicans, added half a million dollars in new welfare spending to a budget that had just refused to cut $5,000.

The Freedom Caucus says it will continue pressing for transparency in the budget process, insisting that program eliminations result in actual funding reductions and that any new spending or positions receive clear, standalone legislative approval.

“South Dakotans deserve a budget they can actually understand,” Jensen said. “When programs end, the spending should end with them.”