South Dakota Governor Larry Rhoden (R) and Lieutenant Governor Tony Venhuizen answer questions from the media after announcing the state grant on December 30, 2025 in Brookings. (Photo by Joshua Hayar/South Dakota Searchlight)
BROOKINGS — South Dakota Gov. Larry Rhoden announced state economic development grants in two more communities Tuesday, drawing criticism from opponents in the race for governor who equated the announcements with campaigning.
Rhoden gave $900,000 to Dakota BioWorx in Brookings, a pilot biorefinery facility at the South Dakota State University Research Park, and $500,000 to the city of Watertown for infrastructure improvements at the Calvin Industrial Park.
The news came shortly after Announced rod A $1 million grant to support two new business parks in Aberdeen, the hometown of Toby Doden, one of Rhoden's opponents in next year's Republican gubernatorial nomination.
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Doden said the timing and tone of the grant announcements make them sound more like advocacy than management. Daudin argued that Rodin was “using taxpayer money the same way professional politicians have been using taxpayer money for decades—largely for their own benefit.”
“His latest attempt to buy votes with tiny handouts to communities he has otherwise completely ignored will come too late in the eyes of voters,” Doden said.
Rhoden responded to criticism during an event in Brookings by saying, “I'm doing my job.”
“We're campaigning, but life goes on,” Roden said. “And I continue to be governor during this campaign, so we will continue to do our job and make public statements like this. I think we owe it to the public to let them know what we're doing as a state.”
The source of grants is Future Funda cash pool that was created in 1987 at the request of then-Gov. George Mickelson. It was placed under the control of the governor to enable the state's chief executive to respond quickly when economic opportunities arise.
State Law requires only that the fund be used “for purposes related to the research and economic development of the State.” The money comes from South Dakota employers who pay into the Future Fund when they contribute payroll taxes to the unemployment benefits program.
Rhoden's two other competitors in the June 2026 primary also criticized his recent statements about the Future Fund.
U.S. Rep. Dusty Johnson, R-South Dakota, said Future Fund grants are an important tool to help South Dakota's economy; however, he said, “they are not intended to help anyone's campaign.”
“Even if these projects make sense, taxpayers have a right to worry when the ads start to look like campaign rallies,” Johnson said.
State House Speaker John Hansen, R-Dell Rapids, said it was “clear that the Future Fund has been used by governors to gain political support.”
“At this point, the Future Fund is not funding South Dakota's future, it is funding the governor's political future,” Hansen said.
Rhoden's predecessor, Kristi Noem, drew controversy and criticism from bipartisan lawmakers for several uses of the Future Fund, including fireworks at Mount Rushmore, a shooting range in the Rapid City area that lawmakers refused to pay forA Governor's Cup Rodeo in Sioux Falls and recruitment campaign which starred Noem.
Eight lawmakers recently filed check this would remove some control from the governor over the fund. The bill would require each Future Fund grant to be approved by a majority of the Economic Development Council, which is appointed by the governor and already oversees other economic development programs.
The Future Fund's current unobligated cash balance is $20 million, according to the Governor's Office of Economic Development. The state budget gives Rhoden the authority to spend another $7 million from the Future Fund this fiscal year, which ends June 30. The primary election in South Dakota will take place on June 2.
