South Dakota Federal Spending

According to USASpending.gov, the official federal award-transaction dataset, the federal government directed $11.5B to South Dakota in FY2025, translating to $12,944 per resident across a population of 886,667. That per-capita figure is 17.3% below the $15,647 national average and ranks South Dakota #33 of 57 states per capita, while total-dollar rank is #51, illustrating the difference between volume of federal dollars and intensity of federal dependence.

The award-type mix shows how federal awards break down in South Dakota by count: 4,432 contracts, 3,822 grants, 3,997 loans, and 97,102 direct payments. The most common award type is direct payments at 86.2% of tracked awards in the state, with contracts a distant second at 4,432 awards. Social Security Administration is the single largest federal agency operating in South Dakota, with $4.6B in obligations - more than Department of Health and Human Services's $2.0B.

Over the available history, federal spending in South Dakota has contracted 12.6% from $13.1B in FY2020 to $11.5B in FY2025. Combined with 66 counties receiving dollars and top recipient Social Services South Dakota Department at $1.6B, this snapshot lets readers judge whether South Dakota's federal footprint is expanding, stable, or being scaled back relative to FY2025.

It helps to read state totals through two different lenses. Total dollars measure the raw volume of federal money flowing into a state, which naturally favors larger and more populous states. Per-capita spending measures intensity, how much federal money lands per resident, and it surfaces smaller states whose economies lean heavily on federal installations, contracts, or transfer payments. The two rankings often disagree, which is exactly why both appear above. The award mix matters too: contracts signal procurement of goods and services, grants flow to universities, nonprofits, and local governments, and direct payments include programs such as Social Security and Medicare that scale with population. Every figure comes from USASpending.gov, the federal spending-transparency system the U.S. Treasury has operated since the DATA Act of 2014. Federal outlays exceeded $7.0 trillion in fiscal year 2025 (CBO Monthly Budget Review), and these are official government records rather than estimates, though late-posted and corrected awards can adjust a state's totals after the year closes. Our methodology details the per-capita denominator, the award categories, and the data vintage.