State apologizes, pays transgender advocacy group $300,000 for discrimination

Opponents of the state’s ban on gender-affirming health care for transgender children gather at Van Eps Park in downtown Sioux Falls on July 28, 2023. The protesters called for state lawmakers to repeal the ban. (Joshua Haiar/South Dakota Searchlight)

The state of South Dakota has issued an apology letter and a $300,000 payment to a transgender advocacy group for the abrupt cancellation of a Department of Health contract in 2022.

Those are the terms of a settlement agreement inked Thursday in a federal discrimination lawsuit filed by The Transformation Project shortly after the cancellation.

Transformation Project calls termination of state contract ‘unwarranted’

The group had a contract with the state, paid for with federal funds, to provide community health worker services to the LGBTQ+ community from its Sioux Falls headquarters.

The cancellation came on Dec. 16, 2022, shortly after a conservative news outlet contacted Gov. Kristi Noem to ask why the state had signed the $136,000 contract .

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