From ND Governor's Office <[email protected]>
Subject THE SCOPE: Gov. Kelly Armstrong's newsletter - Jan. 2, 2026
Date January 2, 2026 9:08 PM
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A recap of recent events and happenings in the administration of Gov. Armstrong and Lt. Gov. Strinden





The Scope
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*January 2, 2026*

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The North Dakota Capitol windows are lighted with the number 2026 to mark the New Year.
Happy New Year!

 

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North Dakota awarded $199M for Rural Health Transformation Program to strengthen rural care
rhtp

Gov. Kelly Armstrong announced that North Dakota has been awarded $199 million from the Centers for Medicare and Medicaid Services [ [link removed] ] (CMS) to support the first year of a statewide Rural Health Transformation Program. The funding will strengthen rural health care by improving access, quality and health outcomes for North Dakotans in rural communities over the next five years. 

To accept federal funding, North Dakota lawmakers must appropriate it before it can be spent. Armstrong issued an executive order [ [link removed] ] officially convening the Legislature for a special session starting Jan. 21.  

“With this major investment through the Rural Health Transformation Program, we have a once-in-a-generation opportunity to rethink and reshape how health care is delivered to our rural communities,” Armstrong said. “We thank President Trump, HHS Secretary Kennedy, CMS Administrator Oz and our congressional delegation for their support in securing this funding, which will benefit citizens across our state and help make North Dakota the best place to live, work and raise a family.”   

The state submitted its application to CMS on Nov. 3. The Rural Health Transformation Program centers on four strategic initiatives: 


* Strengthening and stabilizing the rural health workforce
* Making North Dakota healthy again with preventive care and healthy eating
* Bringing high-quality health care closer to home
* Connecting technology, data and providers for a stronger North Dakota. 

“This funding allows North Dakota to build on existing partnerships and invest in long-term solutions to move toward making our state the healthiest in the nation,” said Pat Traynor, commissioner for North Dakota Health and Human Services (HHS). “Rural communities face unique challenges, and this program helps ensure people can get the care they need, close to home.”  

As part of the application, the state also submitted a request to the U.S. Department of Agriculture (USDA) for a Supplemental Nutrition Assistance Program (SNAP) food waiver to limit purchases of unhealthy food and help improve health outcomes for North Dakotans who participate in SNAP. The USDA approved the waiver on Dec. 10, making North Dakota eligible for additional funding beyond the $500 million minimum allocated to each state over the five-year period. 

Leading up to the special legislative session, HHS is establishing a framework for grant funding prioritization, distribution and sustainability, compliance monitoring in alignment with federal guidance and stakeholder engagement. HHS expects the first release of subaward grant opportunities in the first quarter of 2026. 

“Being awarded this grant funding is an important milestone,” said Sarah Aker, HHS medical services executive director. “Now, our focus shifts to implementation so the resources can start making an impact in rural communities.” 

The Rural Health Transformation Program was part of the federal Working Families Tax Cut Act, which appropriated $50 billion over five years, with half allocated equally to all states. The other half was awarded to states based on their applications and metrics that show where the funding can make the most significant health impact in rural communities.  

To learn more about the Rural Health Transformation Program, including signing up to receive program notifications, visit hhs.nd.gov/rural-health-transformation [ [link removed] ]. 

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allen olson
Armstrong releases statement on the passing of former North Dakota Gov. Allen I. Olson

Gov. Armstrong issued the following statement regarding the passing of former North Dakota Gov. Allen I. Olson, who served as the 28th governor of North Dakota from 1981 to 1984 and as the state’s attorney general from 1972 to 1980. Olson died Friday, Dec. 26, at age 87.

“Governor Olson served North Dakota with dignity and a steady hand as our state’s top law enforcement officer and chief executive,” Armstrong said. “His dedication to the well-being of our citizens and his contributions to natural resources management brought lasting benefits to the people of North Dakota. Kjersti and I extend our deepest sympathies and prayers to his family, friends and former colleagues throughout North Dakota.”

Born in Rolla and raised on a farm near Sarles, Olson earned his undergraduate and law degrees from the University of North Dakota. He served in the U.S. Army as a Judge Advocate General’s Corps lawyer and as chief of military justice in Munich, Germany. In 1967 he returned to North Dakota and served as assistant director of the Legislative Research Committee (now Legislative Council) from 1967 to 1969, directing the state’s first study of strip mining, soil banks and land reclamation, according to the State Historical Society. Olson worked in private practice from 1969 until his first successful run for attorney general in 1972. He was re-elected to a second term in 1976 and then elected governor in November 1980, serving one term.

During his time as governor, Olson worked with the Task Force on Drunk Driving and supported the Garrison Diversion program to supply Missouri River water for agricultural and other uses. His administration also saw the creation of the Department of Human Services and Cross Ranch State Park. After serving as governor, he returned to private practice and relocated to Minnesota, where he became co-owner of a die-casting company in New Hope in 1987. Olson also served as president and CEO of the Independent Community Bankers of Minnesota and was appointed by President George W. Bush to the International Joint Commission.

Funeral arrangements are pending. 

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dapl
Armstrong issues statement on U.S. Army Corps releasing final EIS for Dakota Access Pipeline

Gov. Armstrong issued the following statement after the U.S. Army Corps of Engineers released its final Environmental Impact Statement [ [link removed] ] (EIS) on the Dakota Access Pipeline, recommending that pipeline operations be maintained and the easement to cross Lake Oahe be reinstated.

“This is great news for North Dakota and brings us one step closer to putting an end to this prolonged, unnecessary and politicized process,” Armstrong said. “From the beginning, the state has urged the Corps to follow the law, facts, science and common sense. After eight years of operating safely, the Dakota Access Pipeline has become an essential part of our nation's energy infrastructure. Its continued operation will ensure energy security and affordability for the country while providing positive economic impact that touches every North Dakotan.”

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property tax
North Dakota leaders highlight relief package eliminating property tax bill for 50,000 households

"Read Gov. Armstrong's op-ed on property tax relief [ [link removed] ]

"

As property tax statements arrive in North Dakotans’ mailboxes this month, Gov. Kelly Armstrong joined lawmakers and state Tax Commissioner Brian Kroshus at the Capitol to highlight the significant relief being provided by the $1,600 Primary Residence Credit (PRC) approved last spring, while also emphasizing the need to grow the credit in future legislative sessions to eliminate property taxes for even more households.

Armstrong and legislators worked together last session to more than triple the PRC from $500 to $1,600 per year in House Bill 1176, introduced by Rep. Mike Nathe of Bismarck. When they were pushing for the package, the best estimate was it would eliminate property taxes for 25% of households eligible for the PRC. Recent data released by Kroshus shows the increased credit has wiped out property taxes for 30% of eligible households, or roughly 50,000 households.

“What this shows is meaningful, tangible tax relief,” Armstrong said. “It works, and we know we can build on it to provide even more relief and get property taxes to zero for the vast majority of North Dakota homeowners.”

By comparison, in 2024 the previous $500 credit left 16,000 households, or about 10%, owing no residual property tax. The 50,000 households represent an increase of 34,000 additional households not having to pay property taxes – roughly the same number of households as the entire city of Bismarck, Armstrong noted.

In addition to the 50,000, another 95,000 households will pay smaller property tax bills after the $1,600 credit is applied.

A random sample of 50 property tax statements from 15 counties shows an average reduction in property taxes of 46%, including four households paying no property tax. Even without those four homes, the average reduction was 41%. The statements were either randomly selected online by the state Office of Management and Budget (OMB) or submitted to the North Dakota Association of Counties at OMB’s request. More comprehensive data on the credit’s impact will be available next spring.

Kroshus noted the Office of State Tax Commissioner received 135,000 applications for the PRC in 2024, the first year of the program, and 145,000 applications in 2025, increasing the participation rate from 92% to 95% of eligible homeowners. The goal for their 2026 campaign is to ensure all eligible homeowners apply for and receive the credit, he said.

“Housing-related expenses represent, on average, about one-third of total household budgets, significantly impacting all citizens and especially those on fixed incomes, including young families and our seniors,” Kroshus said. “This year’s credit amount of $1,600 is both timely and meaningful to so many North Dakota families.”

A dedicated stream of earnings from the state’s $13 billion Legacy Fund is paying for the PRC, estimated to save homeowners over $400 million in the 2025 and 2026 tax years. The earnings stream will grow as the Legacy Fund grows, allowing the tax credit to be increased in future sessions, starting in 2027. The Legacy Fund receives 30% of the revenue derived from taxes on oil and gas production and extraction in North Dakota.

“Thanks to the oil industry and the Legacy Fund earnings, we are able to provide long-term, sustainable property tax relief to the homeowners of North Dakota,” Nathe said. “I’m looking forward to providing even more property tax relief in the future.”

As part of the property tax relief and reform package approved last spring, lawmakers also capped increases in local property tax budgets at 3% annually, with the ability to bank unused percentages for up to five years. Because local budgets were already set for 2025, the full impact of that change will first appear next year on 2026 property tax statements.

“The legislature worked hard to provide true property tax reform through the 3% cap and a $1,600 property tax credit on primary residences in the state. This was done using Legacy Fund earnings, which will provide this relief for future generations,” House Majority Leader Mike Lefor said.

“We will leverage the sustainability of this primary residence tax relief in other areas of our economy. As an example, we are permanently reducing the costs of home ownership and expect this permanent tax relief to encourage home ownership in all of our communities,” Senate Majority Leader David Hogue said.

The application period for this coming year’s PRC campaign begins Jan. 1 and will remain open through April 1. Eligibility requirements include being a resident of the state and living in a home that serves as a primary residence. There are no age or income restrictions, and there is a limit of one credit per household.

As in the past two years, the application process will be online only. Kroshus said those without computer access can apply by calling the Tax Commissioner’s Office directly and speaking with a property tax specialist. He encouraged all eligible participants to apply as soon as possible once the application window opens Jan. 1.

To apply, go to tax.nd.gov/prc [ [link removed] ] or call the Office of State Tax Commissioner at (701) 328-7988 or toll-free at 1-877-649-0112 to connect with a property tax specialist. 

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*IN OTHER NEWS*

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menorah

Gov. Armstrong attended the public menorah lighting at the North Dakota Capitol, wishing a Happy Hanukkah to Jewish friends and neighbors in North Dakota and beyond.



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my town

Linton, North Dakota, is the featured town on the most recent episode of "My Town" by Cory Hepola. Watch the entire episode here [ [link removed] ]. 



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ditch chickens

Gov. Armstrong was announced as the first-ever head coach of the Dakota Ditch Chickens, the temporary identity of the Bismarck Larks on July 15, 2026. Armstrong signed a one-day contract with the team to help promote wildlife habitat around the state.

Learn more about the event here [ [link removed] ]. 



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pioneer

Gov. Armstrong made a surprise appearance to Pioneer Elementary in Bismarck, visiting fourth-grade students who were wrapping up a lesson about government. Armstrong and First Lady Kjersti answered questions and had lunch with the students in the cafeteria.



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good luck

Watch the story about Gov. Armstrong's lucky hunting buddy [ [link removed] ]. 

 



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