SIOUX FALLS, S.D. (KELO)–The South Dakota Department of Social Services hosted a public hearing where they discussed a 10% reduction in the payment standard for the Temporary Assistance for Needy Families (TANF) program.
The proposed cut comes from a $5.3 million reduction to the Department of Social Services (DSS) general fund.
According to the fiscal note, the 10% reduction in TANF would save the state an estimated $1.52 million to cover part of the $5.3 million reduction.
DSS will review the public comment that has been submitted before presenting their new plan, after reviewing public comment in front of an Administrative Rules Hearing on July 15, before the new rules potentially going into effect on August 1.
DSS Secretary Matt Althoff, said TANF is meant to be a supplemental program and isn’t necessarily meant to meet all the needs of a family.
“This is obviously not enough to make all ends meet by any means, but it’s assistance. That’s what it’s meant to be very similar to the spirit of SNAP, another program that we administer Supplemental Nutrition Assistance Program,” Althoff said. “It’s not meant to meet all of their needs, It’s just meant to meet some of their needs.”
The department gets $21.2 million of federal funds each year and state government puts in $8.5 million for a total TANF funding of $29.7 million. At the end of fiscal 2024, the department had $23.4 million of carryover funds available.
The carryover funds are dollars that are available to DSS that have been saved after federal TANF dollars have not been used for the year remaining in a savings account for the department.
The overall general fund for DSS was cut by $5.3 million. Althoff said cutting the TANF program by 10% is just a part in helping get their general fund back to normal.
“If we’re going to reduce to the state general fund minimum, that the federal government requires, we don’t have to do that all through a reduction in benefits,” Althoff said. “We can use some of the carryover funds, some of the money in the piggy bank, if you will, to help administer this program in fiscal 26.”
Althoff said he isn’t blaming the legislature, but wished they had more time to discuss the potential cuts.
“In implementing this, I would emphasize we had in our minds, not fleshed out entirely, but we had all that in our minds we went to the legislature and as I said to many of the appropriators who I’ve been in contact with,” Althoff said. “I don’t wanna speak for any legislator, we all agree we wish we would have a little bit more robust discussion back in in session and we all understand how busy it can be in a 40-day session.”
Althoff said the state typically doesn’t use one-time funds to fund ongoing programs, saying that the problem with doing so is that it’s unsustainable.
“We will run out of the carryover funds, so that’s exactly why this is a strategic approach to say this year we’ll try the 10% reduction in benefits all while drawing down,” Althoff said.
Althoff said the federal carryover funds already have some strategic priorities that were set long before his time as secretary, including the department’s mainframe technology platform, and using the funds as savings for a sort of rainy day fund.
The deadline to submit any such written comments for consideration by the Department of Social Services is June 30, 2025, ten days after the date of the public hearing.
Written public comments can be sent to Teresa Schulte, Administrative Rules C219, Department of Social Services, 1501 S. Highline Ave., Sioux Falls, SD 57110 or can be emailed to DSSAdminRules@state.sd.us.
Reporter Dan Santella will be taking a closer look at the public comment portion of the meeting in his story.
