DEADWOOD, S.D. – South Dakota Gov. Larry Rhoden told a gathering of journalists Friday that one of his challengers, U.S. House Rep. Dusty Johnson, attempted to blackmail him into not to entering the gubernatorial race.
Rhoden spoke at the South Dakota NewsMedia Association conference in Deadwood. He didn't name Johnson directly during his comments but later confirmed to News Watch that's who he was talking about.
Rhoden said that Johnson, through a mutual friend, tried to dissuade him from running for re-election by insinuating he would direct a large portion of his campaign war chest, including funds from super political action committees associated with him, against Rhoden if he ran.
"They let me know he had more than just the $6 (million) or $7 million in his personal fund. That he also had these dark money super PACs that he could maintain cover on. In fact, that's exactly what he did when he released the ads," Rhoden said. "In the interviews he did, he said 'No, that wasn't me, that was them.' Well, why did you tell me about it? That blows my mind."
In recent weeks, Johnson's supporters have launched an ad campaign accusing Rhoden of enacting the largest sales tax increase in state history. Rhoden enacted two major bills from the 2026 legislative session that, in some fashion, decrease property taxes in exchange for increasing sales taxes. Johnson has also hit out at a third bill that Rhoden signed that will allow municipalities to raise sales taxes to fund capital projects.
Johnson dismissed Rhoden’s remarks.
“I did not approve the ad, but it’s clear this PAC supports me and opposes the Governor’s three sales tax increases. Every other candidate has a PAC supporting them and this is no different,” Johnson said in an email to News Watch. “But let’s be clear—I don’t disagree with any of the facts in this ad.”
Rhoden said some of Johnson's statements are outright lies.
Alexander Rifaat
Rhoden provided more details of the exchange to News Watch, explaining that a mutual friend of his and Johnson's called him shortly after last year's legislative session when he was debating whether to enter the race.
"He called one of them up and he said, 'Tell Larry, if he gets in the race, I will drop a million bucks on his head, drive his numbers down into the single digits, and I just don't want to have to do that,'" Rhoden told News Watch.
"He (Johnson) was presenting it like he was doing me a favor," Rhoden said. "It's blackmail, basically."
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A scientific survey of 500 registered Republicans, conducted April 7-11 by Mason-Dixon Polling and Strategy, found Johnson leading the four-way contest for governor with 34% of likely GOP primary voters supporting his candidacy.
The other three candidates were effectively tied for second due to the margin of error being plus-or-minus 4.5%. State House Speaker Jon Hansen, of Dell Rapids, had 18% support from GOP voters, and Aberdeen businessman Toby Doeden and Rhoden both had 17%. Roughly 14% of those surveyed were undecided, according to the poll sponsored by South Dakota News Watch and Chiesman Center for Democracy.
The revelations come as the GOP gubernatorial race enters the final stretch, with a month left until the June 2 primary. If no candidate receives at least 35% of the vote, a runoff will be scheduled for July 28.
Update: This story was updated May 1, 2026 to add a response from Johnson to Rhoden’s claims.
Correction on May 1, 2026: A PAC, not Johnson, has launched an ad campaign accusing Rhoden of enacting the largest sales tax increase in state history.
South Dakota News Watch is an independent nonprofit. Read, donate and subscribe for free at sdnewswatch.org. Contact politics and statehouse reporter Alexander Rifaat: 605-736-4396/alexander.rifaat@sdnewswatch.org.
