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In this week's 2026 budget address, Governor Kristi Noem proposed establishing education savings accounts for K-12 students in South Dakota. Opponents countered a voucher program could undermine the state's education system, by siphoning dollars away from public schools.

Noem announced she set aside $4 million in next year's budget to launch the accounts at about $3,000 per qualifying student. She explained the initial investment would pay for a portion of a student's private school tuition or home schooling.

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"Good education starts in the home, and parents should have the tools that they need to choose the educational path that is best for their kids," Noem stated. "My hope is that these ESAs will ultimately be available to every single student in South Dakota."

Noem added her proposal will not cut funding for public schools. But opponents argued the 1.25 percent funding increase Noem proposed for public education will still be a cut, as it won't be enough to cover the cost of inflation.

Five statewide education groups released a joint letter last week, urging policymakers to strengthen public education. Among them is the South Dakota Education Association.

Sandra Waltman, director of public affairs for the association, said Noem's plan to expand the accounts over time would harm South Dakota students, who largely attend public schools.

"This will certainly divert scarce tax dollars from our public schools, which serve 80 percent of South Dakota students, to private school operators that lack any taxpayer accountability," Waltman contended. "Public schools will lose thousands of dollars in state aid, yet operational costs will remain the same."

The governor's proposal echoes similar Republican-led legislation in other states and will require action from South Dakota lawmakers in the next legislative session. A similar K-12 voucher bill brought to the House Education Committee in 2023 died in the chamber.