Rounds Releases Statement on Reconciliation Passage

WASHINGTON – U.S. Senator Mike Rounds (R-S.D.) today released the following statement after the reconciliation bill passed the Senate by a vote of 51-50, with Vice President Vance breaking the tie:

“Last November, South Dakotans and the American people voted for a better, stronger nation that puts the safety and prosperity of American families first. They voted for policies that rein in government spending, cut taxes for the middle and working class and protect Americans from threats at home and abroad. With the Senate passage of the One Big Beautiful Bill Act, we are one step closer to delivering on those promises.

“Despite obstruction from Democrats that went long into the night, Leader Thune and our Senate Republican majority passed the bill this afternoon. The One Big Beautiful Bill Act is a win for families in South Dakota and across America. It delivers the largest tax cut for the working class in American history, boosts our national defense, secures our border and cuts wasteful government spending on the taxpayer’s dime. Specifically in South Dakota, it will save families from an average tax increase of $2,400 next year. It also introduces new savings for families by increasing the Child Tax Credit, no taxes on tips, overtime or car loan interest and giving middle-class seniors tax relief on Social Security. This means more money going back into the pockets of hard-working South Dakotans. 

“I look forward to working with my colleagues as we build on this momentum and continue to deliver results for the American people.”  

The reconciliation package includes several important provisions for South Dakotans, see below for final provisions that Sen. Rounds voted for.

Strengthens National Security

• $3.3 billion for Border Security to fund DoD personnel and logistics support to Department of Homeland Security to help carry border, immigration, and counterdrug enforcement.
• $9 billion for Servicemember Quality of Life, including increases in allowances and special pays, as well as improvements to housing, healthcare, and assistance to military families.
• $25 billion for Golden Dome for America, a layered missile defense shield, to develop the space-based assets needed to support the system.
• $28 billion for Shipbuilding and the Maritime Industrial Base to expand the size and capability of our naval fleet.

Supports South Dakota Families & Small Businesses

• Permanent continuation of the current tax rate for the average South Dakota household, avoiding a $2,400 increase per year. 
• Permanent increased and enhanced child tax of $2,200 per child beginning in 2025.
• Lower taxes for seniors by providing a $6,000 bonus income exemption.
• No tax on tips for millions of tipped workers by creating a deduction of up to $25,000 for qualified tips.
• No tax on overtime for overtime premium payments of up to $12,500 for hourly workers.
• Establishes savings accounts for newborns and children up to age 18, building financial security for the next generation.
• Makes the 20 percent small business deduction permanent.
• Restores and makes permanent full expensing for domestic R&D to encourage domestic innovation.
• Restores and makes permanent full expensing for new capital investments for investments in machinery and equipment to boost domestic production.
• Permanently renews and enhances the Opportunity Zone program, driving $100+ billion of investment to rural and distressed communities.
• Cut Consumer Financial Protection Bureau funding in half, which would weaken an out-of-control regulatory entity that only created red tape for local banks and businesses.

Safeguards Longevity of Health Care System

• Prevents Medicaid payments for beneficiaries who have died, are enrolled in multiple states or do not qualify for the program.
• Ends Medicaid financing gimmicks that increase federal spending.
• Establishes work requirements for able-bodied adults who are choosing not to work and do not have young dependent children or elderly parents in their care.
• Able-bodied adults without dependents can work, participate in a work training program, enroll in school or volunteer for 20 hours per week in order to receive taxpayer-subsidized Medicaid coverage.
• Exemptions are included for veterans with total disabilities, serious medical conditions, caretakers of young children or disabled individuals, certain American Indians, and others.
• Supports rural hospitals in South Dakota by providing $50 billion for the Rural Hospital Relief Fund.
• Supports nursing homes by eliminating burdensome Biden-era staffing mandates that threatened to close facilities.

Supports American Ag

• Strengthens SNAP work requirements for able-bodied adults by increasing the age that able-bodied adults must continue working from 54 through 64, which would save $285 billion.
• Limits the ability of States to arbitrarily waive work requirements by restricting waivers to only areas with high unemployment.
• Exemptions are included for certain American Indians and others.
• Increases statutory reference prices for all covered commodities and bolsters the effective reference price escalator for the 2025 through 2031 crop years.
• Expands access to standing disaster programs and conservation programs.
• Improves the livestock programs to be more responsive to drought and predation and expands producer eligibility for the tree assistance program.
• Provides more affordable crop insurance for beginning farmers and ranchers for the first ten years of farming.
• Increases the coverage level and affordability of certain crop insurance policies used by row crop and specialty crop producers.
• Invests in efforts to maintain the accessibility and affordability of crop insurance nationwide, while investing in additional reviews, compliance, and integrity.
• Increases the budget authority for popular conservation programs by over $16 billion, representing an approximately 35% increase in these programs’ baseline.
• Invests in USDA’s premier animal health programs that defend against livestock disease outbreaks and mitigates threats like New World Screwworm and Highly Pathogenic Avian Influenza and African Swine Fever.

South Dakota Provisions

Below are provisions authored or requested by Senator Rounds to be included in the reconciliation package: 

• $50 million for cold spray repair technologies.
• $50 million for high-altitude stratospheric balloons for military use.
• $250 million for Cyber Command artificial intelligence.
• $25 million for military spectrum agility, testing of simultaneous transmit and receive technology. 
• $100 million for Defense Community Infrastructure Program to support infrastructure needs like Douglas School District.

• $4.5 billion for expansion of production capacity of B-21 long-range bomber aircraft, including tooling and expansion of supplier base, and purchase of aircraft only available through the expansion of production capacity.
• $250 million for advancement of artificial intelligence ecosystem.
• $100 million for Impact Aid to local educational agencies.
• $150 million for Ground moving target indicator military satellites.

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