SIOUX FALLS, S.D. — A longtime mental health advocacy organization in South Dakota is shutting down, citing financial strain at a time when many experts say the need for services has never been greater.
NAMI South Dakota is dissolving, according to Executive Director Sheri Nelson, who said the decision follows ongoing funding challenges.
“Like many organizations across the country, NAMI South Dakota has been deeply affected by reduced funding, rising operational costs, and increasing financial uncertainty that make it unsustainable for us to continue operations responsibly,” Nelson said in a statement.
The closure comes as data from the South Dakota Department of Social Services shows rates of mental illness and the demand for care in the state generally outpace national averages.
In 2021, 18.7% of South Dakota adults received mental health services, compared with 16.9% of adults nationwide. That same year, 23.4% of South Dakota adults age 18 and older were living with a mental illness, versus 22.8% nationally. Among young adults ages 18 to 25, the rate in South Dakota approaches one in three.
“This decision is not a reflection of the importance of our mission or the ongoing need for mental health advocacy, education, and support in South Dakota. Rather, it is a response to the significant and ongoing financial challenges facing the nonprofit sector nationwide,” Nelson said.
Mental health funding has drawn attention across the country in recent weeks. Last month, the Trump administration halted billions of dollars in funding for mental health and addiction programs, then reversed the decision a day later and restored about $2 billion in federal grants. Published reports this week indicate the U.S. Department of Health and Human Services plans to reduce roughly $600 million in public health funding to Democratic-led states. South Dakota is led by Republicans.
“While NAMI South Dakota will be dissolving, the need for mental health support remains vital. We encourage our community members to continue seeking and supporting mental health resources and organizations serving South Dakotans,” Nelson said.
Nelson added that she is proud of the organization’s work and grateful to the volunteers, board members, partners and supporters who helped raise awareness, reduce stigma and provide hope and resources to people affected by mental illness.
NAMI South Dakota was founded in 1987.
