Gov. Larry Rhoden announced Tuesday the creation of the South Dakota Defense Institute, backed by $5 million in Future Fund dollars, as part of his effort to make national security South Dakota’s “next big industry.” The institute will operate for an initial five years and serve as a central hub connecting businesses, educators, and government agencies while helping South Dakota companies pursue defense contracting opportunities.
The announcement follows Rhoden’s State of the State address and builds on the Governor’s Resilience and Infrastructure Task Force, created last year to expand state and local roles in national preparedness. Rhoden said South Dakota’s strengths — including cybersecurity, food security, workforce programs, and proximity to military operations — position the state to contribute more directly to national defense.
In addition, Rhoden awarded $1 million to Elevate Rapid City to purchase a building in the city’s Innovation District, which will house the institute and provide a collaboration space for students, researchers, and defense companies. The institute will be organized alongside the Governor’s Office of Economic Development and partner with private industry, the South Dakota National Guard, higher education systems, and workforce agencies.
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