The South Dakota Department of Social Services (DSS) plans to cut welfare aid by 10% for thousands of households receiving Temporary Assistance for Needy Families (TANF). The reduction comes after the state legislature decreased DSS’s general funding by $5.3 million for the upcoming fiscal year. DSS had previously planned to offset budget reductions with federal funds but is now considering benefit cuts.
A public hearing on the proposed reductions will be held on June 20 in Sioux Falls. In 2024, an average of 2,460 households received TANF payments, totaling $15.3 million. The expected 10% cut would amount to about $1.5 million. DSS Secretary Matt Althoff stated that the department is examining ways to reduce benefits and expects changes to take effect on July 1.
The announcement has raised concerns among lawmakers, some of whom were already frustrated with expensive, long-term leases for new One Stop centers. Former Gov. Kristi Noem had recommended budget shifts before resigning to become the U.S. Homeland Security secretary. The Legislature later passed a law requiring approval for future costly lease agreements, but it does not apply to past decisions.
Public comments can be submitted in person, by phone, or in writing through June 30.
Comments