South Dakota Governor Candidates Debate $15M in State Aid for Business Expansion

Republican candidates have differing views on the state's role in economic development projects

Apr. 6, 2026 at 9:19pm

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An abstract, avant-garde painting featuring overlapping, fractured geometric shapes and waves of vibrant blue, red, and gold colors, conveying the high-energy debate over economic development policies in South Dakota politics.The heated debate over state economic development incentives highlights the philosophical divide among South Dakota's Republican gubernatorial candidates.Brookings Today

South Dakota Republican Governor Larry Rhoden recently celebrated the completion of a $220 million expansion at a Brookings facility owned by Minnesota-based company Solventum, which received $15 million in state tax rebates through the Reinvestment Payment Program. The event highlighted the ongoing debate among Republican candidates for governor over the state's involvement in economic development, with some candidates like House Speaker Jon Hansen criticizing the state's 'corporate welfare' approach, while others like Congressman Dusty Johnson believe the state can do more to support business growth.

Why it matters

The debate over the state's role in economic development has become a key issue in the Republican primary race for governor. Some candidates see the state's business incentives and tax rebates as necessary tools to attract and retain companies, while others view them as 'corporate welfare' that unfairly benefits large corporations over homegrown small businesses.

The details

The $15 million in state tax rebates for Solventum's Brookings expansion came through the Reinvestment Payment Program, which provides rebates for sales and use taxes paid on equipment or construction costs. The city of Brookings also helped with $3.5 million in financing from a tax increment financing (TIF) district. Solventum CEO Bryan Hanson praised the state and local partnership, saying the company weighed other locations before choosing to expand in Brookings. However, House Speaker Jon Hansen, a Republican gubernatorial candidate, has criticized the state's economic development model as 'corporate welfare' that unfairly benefits large corporations.

  • On April 4, 2026, Republican candidates for governor debated the state's role in economic development.
  • On April 6, 2026, Governor Larry Rhoden celebrated the completion of Solventum's $220 million expansion in Brookings.

The players

Larry Rhoden

The current Republican governor of South Dakota, who has defended the state's business incentives and tax rebates as tools for economic growth.

Jon Hansen

The Republican Speaker of the South Dakota House of Representatives and a candidate for the Republican gubernatorial nomination, who has criticized the state's economic development model as 'corporate welfare'.

Dusty Johnson

A Republican U.S. Congressman and candidate for the Republican gubernatorial nomination, who believes the state can do more to support business growth and prosperity.

Toby Doeden

A Republican candidate for the South Dakota gubernatorial nomination, who has criticized the state's 'reckless spending' on economic development incentives.

Bryan Hanson

The CEO of Solventum, the Minnesota-based company that received $15 million in state tax rebates for its $220 million expansion in Brookings.

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What they’re saying

“'You don't spend hundreds of millions of dollars in a state that doesn't embrace business.'”

— Bryan Hanson, CEO, Solventum

“'Every week I'm going to ribbon cuttings and groundbreakings, and a lot of them were expansions or businesses that are moving here.'”

— Larry Rhoden, Governor of South Dakota

“'I think this is unfair to our South Dakota businesses and entrepreneurs and, as we've seen, is a breeding ground for corruption and backroom deals.'”

— Jon Hansen, Republican Candidate for Governor

“'I believe South Dakota can be a great place to do business, and I'm glad these companies choose to invest in our state and our people.'”

— Dusty Johnson, Republican Candidate for Governor

What’s next

The Republican primary election to determine the party's nominee for governor is scheduled for June 2, 2026. The winner will face the Democratic nominee in the general election later that year.

The takeaway

The debate over the state's role in economic development highlights the differing philosophies among the Republican candidates for governor. Some see the state's business incentives and tax rebates as necessary tools to attract and retain companies, while others view them as unfair 'corporate welfare' that benefits large corporations over homegrown small businesses. This issue will likely be a key factor in the Republican primary and general election for governor.