Thanks to President Joe Biden’s Inflation Reduction Act, rebates are now available for Americans looking to upgrade their home energy efficiency or purchase new appliances. However, South Dakota’s Governor Kristi Noem has surprised many by rejecting these federal funds, prompting criticism from state Democrats who argue this decision denies residents much-needed relief from rising energy costs.
“Governor Noem seems to prioritize her political stance over the needs of South Dakotans,” remarked South Dakota Senate Minority Leader Reynold Nesiba, as reported by Sioux Falls KSFY.
Chip Somodevilla/Getty Images
Every other state and U.S. territory has accepted these funds, all aimed at helping residents upgrade their home efficiencies. Amidst criticism, Noem’s Bureau of Finance and Management cited staffing limitations—specifically, having only one full-time employee in the Office of Emergency Management—as a reason for declining the funds.
Noem previously rejected federal funding for various programs, claiming that the state should avoid long-term commitments to federal programs that may not sustain themselves financially. “We have a small workforce that is already stretched,” said Colin Keeler, Director of Financial Systems for South Dakota’s government. “Taking on new federal programs may burden our resources unnecessarily.”
State residents eligible for home energy upgrades could have accessed $69 million in rebates, with another $1.8 million set aside to establish the program. State Representative Linda Duba voiced concern over staffing, suggesting they could easily hire outside help to manage the administration of the program, which would be fully funded by the federal government.
Ultimately, the governor’s decision has sparked a debate on whether political motivations are outweighing the immediate financial needs of South Dakota residents. As this unfolds, the state’s answers to broader energy policy questions remain to be seen.