South Dakota
Working families in South Dakota need accessible, affordable, quality child care and early learning opportunities for their children.
Currently, federal and state early learning programs reach thousands of young children and their families in South Dakota. But too many working families in South Dakota are missing out. As a direct result of child care issues, the South Dakota economy loses millions of dollars each year in the form of lost earnings, productivity, and revenue.
In the state, 72% of children have all available parents participating in the workforce, while the average cost of care is $8,632 a year (or $719 per month).
More than 1,500 children ages 5 and under have child care costs subsidized through the Child Care and Development Block Grant (CCDBG), or 11% of those eligible. The average copay with a CCDBG subsidy is $41 a month.
3.9K children receive care, learning, nutrition, and other services at no cost through Early Head Start/Head Start (or 17% of those eligible for Early Head Start and 54% of those eligible for Head Start).
And 23.7K working families have the cost of their child care offset through the Child + Dependent Care Tax Credit (CDCTC).
However, many working parents still struggle to access affordable, quality child care, which costs the state’s economy an estimated $516 million each year in lost earnings and productivity.
South Dakota: In The Headlines
Sioux Falls Head Start program reports strong gains in kindergarten readiness
Sioux Falls Live | January 13, 2026
Students enrolled in the Sioux Falls School District’s Head Start program made significant gains in academic and social-emotional readiness.
SD near the bottom in rate of kids prepared for kindergarten
South Dakota News Watch | February 20, 2026
Nearly half of South Dakota children under the age of 5 are not on the right track to start school and find early success in the classroom.
Have South Dakota’s registered in-home day cares decreased over the past decade?
South Dakota News Watch | May 21, 2025
Since 2015, South Dakota has lost half of its in-home day cares, with around 350 registered with the state in 2024.
South Dakota Resources & News
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