Midwest
Sanctuary city lawyers plot to help illegal migrants evade ICE in exposed group email
EXCLUSIVE – Leaked emails to and from certain Minneapolis-area lawyers show attempts to actively thwart efforts from Immigration and Customs Enforcement (ICE) to apprehend illegal immigrant defendants in the sanctuary city.
The emails were sent on Feb. 6 on a private listserv, or email list, that goes out to several hundred members of the Minnesota Association of Criminal Defense Lawyers (MACDL), according to a member who spoke to Fox News Digital on the condition of anonymity.
The same day, progressive Minnesota Attorney General Keith Ellison issued a formal legal opinion that state law “prohibits state and local law enforcement agencies from holding someone based on an immigration detainer if the person would otherwise be released from custody,” a press release from the AG’s office states.
“ICE at the PSF,” one subject line states, possibly referring to the Public Safety Facility. “LRC just got word that plain clothes ICE officers have been spotted at the Hennepin County PSF today. Let’s do all we can to keep our clients safe in these difficult times,” the corresponding email reads.
‘SANCTUARY’ CITY MAYOR CONFRONTED AFTER GANG MEMBER ALLEGEDLY ASSAULTS FEDERAL OFFICERS
ICE at the PCF email screenshot (Handout)
Numerous responses from other attorneys ensued, with many suggesting lawyers request Zoom hearings for illegal immigrant defendants so that they do not have to appear in court in person and can therefore avoid ICE officers.
Various sanctuary city officials have made concerted efforts to push back against the Trump administration’s crackdown on illegal immigration since he took office in January. President Donald Trump has signed a slew of executive orders aiming to streamline efforts by ICE and other law enforcement agencies to carry out the detention and removal process.
A recent Department of Homeland Security (DHS) directive rescinds the previous Biden administration’s guidelines preventing ICE and Customs and Border Protection officers from enforcing the law in “sensitive” areas.
CHICAGO PD SAYS IT ‘WILL NOT ASSIST’ WITH UPCOMING ICE DEPORTATIONS
“This action empowers the brave men and women in CBP and ICE to enforce our immigration laws and catch criminal aliens – including murderers and rapists – who have illegally come into our country. Criminals will no longer be able to hide in America’s schools and churches to avoid arrest,” a DHS spokesperson said in a Jan. 21 statement. “The Trump Administration will not tie the hands of our brave law enforcement, and instead trusts them to use common sense.
Nearly 1,000 people were arrested on Jan. 27, according to the ICE. (ICE)
“The Biden-Harris Administration abused the humanitarian parole program to indiscriminately allow 1.5 million migrants to enter our country. This was all stopped on day one of the Trump Administration. This action will return the humanitarian parole program to its original purpose of looking at migrants on a case-by-case basis,” the spokesperson added.
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Ronnie Santana with Tamburino Law Group replied, “I was thinking we may want to have a conversation within the organization about pooling together [a]nd asking to convert hearings to [Z]oom for clients that we think would be targeted by ICE.” (Handout)
On the Minnesota email list, Ronnie Santana with Tamburino Law Group said, “I was thinking we may want to have a conversation within the organization about pooling together [a]nd asking to convert hearings to [Z]oom for clients that we think would be targeted by ICE.”
Santana did not respond to an inquiry from Fox News Digital.
JaneAnne Murray with Murray Law LLC said in the email thread that she “called the court’s clerk and orally requested a [Z]oom appearance.”
“I explained the immigration circumstances and why I don’t want to lay them all out in a motion that may get reviewed by ICE. Shortly thereafter, I got an email authorizing my client to appear by [Z]oom (I must appear in person). Prosecutor was copied on the email but not consulted on the request,” Murray said.
Murray did not respond to an inquiry from Fox News Digital.
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Murray later followed up on her email and said she “called the court’s clerk and orally requested a [Z]oom appearance.” (Handout)
Barry Cattadoris with the Third Judicial District Public Defender’s Office said “select judges in the Third Judicial District Court proactively reached out to the PD’s office,” possibly referring to the public defender’s office, “to state that they encourage [Z]oom requests on any cases with immigration issues for State and Defense in light of ICE showing up at courthouses and that requests will be ‘liberally’ granted.”
“So ask for Zoom!!!!!” Cattadoris wrote.
Cattadoris noted that while he hasn’t “practiced in Hennepin in over 10 years,” he recalled that emails “are not always scanned and put in a formal court file.” He noted in a later email that the illegal immigrants he has seen detained in the Third Judicial District “since January 20th have been 1) No lawful status and 2) facing more serious charges.”
“But have seen folks with no convictions and just pending serious charges,” Cattadoris added.
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Cattadoris did not respond to an inquiry from Fox News Digital.
Barry Cattadoris with the Third Judicial District Public Defender’s Office said “select judges in the Third Judicial District Court proactively reached out to the PD’s office,” possibly referring to the public defender’s office, “to state that they encourage [Z]oom requests on any cases with immigration issues for State and Defense in light of ICE showing up at courthouses and that requests will be ‘liberally’ granted.” (Handout)
One attorney suggested that it is “probably best to find a reason to request remote that doesn’t explicitly state immigration issues.” Another recommended “saying it’s an interpreter case and interpreters are more effective on [Z]oom.”
CLICK HERE FOR MORE IMMIGRATION COVERAGE
ACLU attorney Alicia Granse wrote, “Speaking of ICE… We at ACLU-MN are interested in protecting people from their presence at courthouses and at jails.”
ICE is conducting flights to remove illegal immigrants from the U.S. and back to their home countries. (ICE Seattle)
“At minimum, no official should be holding someone based simply on an ICE detainer – they need a judicial warrant based on probable cause,” Granse continued. “If you have clients who have ICE holds and county officials or other law enforcement are honoring them, please email me… We might like to sue the crap out of them.”
CHICAGO ALDERMAN SAYS MAYOR BRANDON JOHNSON CAN’T DEFEND SANCTUARY CITY POLICIES
“Previous cases we got good settlements for people and there’s even a permanent injunction against Nobles County for holding someone for ICE,” Granse said.
Granse did not respond to an inquiry from Fox News Digital.
ACLU attorney Alicia Granse wrote, “Speaking of ICE… We at ACLU-MN are interested in protecting people from their presence at courthouses and at jails.” (Handout)
Local officials are under no obligation to coordinate with federal officials insofar as holding illegal immigrants based on a detainer.
A January memo from ICE states that “generally, ICE’s immigration enforcement actions in our near courthouses include actions against targeted aliens,” including gang members, national security or public safety threats, those with prior criminal convictions, those who have been ordered to be removed from the United States “but have failed to depart,” and those who illegally re-entered the country after being previously deported.
ICE agents, along with other federal law enforcement agencies, attend a pre-enforcement meeting in Chicago on Jan. 26, 2025. (Christopher Dilts/Bloomberg via Getty Images)
George Washington University law professor and Fox News contributor Jonathan Turley told Fox News Digital the “emails suggest that the sole reason for converting hearings into virtual appearances is to evade ICE enforcement,” which “will raise a serious legal question over the proper use of court resources and orders.”
“There is a legitimate debate over whether ICE should target those seeking judicial review in their cases,” Turley said. “Few immigrants will want to risk a hearing if they will be detained as a cost of appearing. However, if ICE has a right to access, the use of virtual hearings to prevent federal authorities could cross the Rubicon for some judges as an improper use of state authority to deter federal enforcement.”
“If there is a legal impediment for ICE to appear at hearings, the parties should ask for a court order of protection and allow the matter to be reviewed by appellate courts,” Turley added.
Jonathan Turley told Fox News Digital the MACDL emails “will raise a serious legal question over the proper use of court resources and orders.” (Fox News)
As of publication, officials have not taken any legal action stemming from the emails on the grounds that the correspondence represents an active effort to frustrate law enforcement, and none of the MACDL members who sent the aforementioned emails have been charged with any crime.
A subsection of Title 8 makes it illegal to harbor illegal immigrants. Specifically, Title 8, U.S.C. § 1324(a)(1)(A)(iii) “makes it an offense for any person who – knowing or in reckless disregard of the fact that an alien has come to, entered, or remains in the United States in violation of law, conceals, harbors, or shields from detection, or attempts to conceal, harbor, or shield from detection, such alien in any place, including any building or any means of transportation.”
Another subsection of the same law “expressly makes it an offense to engage in a conspiracy to commit or aid or abet the commission of” harboring an illegal immigrant.
Additionally, 18 U.S.C. § 1346 makes it an offense to “scheme or artifice to deprive another of the intangible right of honest services.” Honest services fraud involves “the misuse of an individual’s position or authority for personal gain or advantage,” according to Eisner Gorin LLP. “It can be committed by public officials, corporate officers, and private individuals with fiduciary duties to another person or entity.”
The Department of Homeland Security logo is seen during a news conference in Washington. (AP Photo/Pablo Martinez Monsivais)
In 2019, charges were filed against Massachusetts Judge Shelley Joseph, who was accused of impeding the federal arrest of an illegal immigrant defendant in her courtroom. Prosecutors dropped the charges in 2022 after Trump left office, but the scrutiny did not end there. The Massachusetts Judicial Conduct Commission filed an ethics complaint against Joseph in 2024, according to Reuters.
While none of the MACDL members who sent the emails responded to Fox News Digital, the association sent an email to members following Fox’s inquiries, stating: “The author(s) of the email(s) did not consent to having their statements or advice disseminated beyond our organization and are now being asked for comment for a story. We are angered and feel betrayed on behalf of the impacted people.”
Trump’s recent immigration-related executive orders include declaring a national emergency at the border, halting refugee resettlement, ordering a removal process without asylum and border wall reconstruction, and deploying the military to the border.
As of Jan. 31, ICE has arrested 7,412 illegal immigrants and placed nearly 6,000 ICE detainers on individuals believed to be in the country illegally.
Read the full article from Here
North Dakota
The State Historical Society’s many historical flags
BISMARCK, N.D. (KFYR) – The State Historical Society has a collection of more than 300 flags. They represent North Dakota, its communities and organizations.
When most people think of a flag, the stars and stripes first come to mind. However, flags of all kinds are stitched together to serve as powerful symbols of identity and pride. Local historians want to preserve the material that represents the state and its people.
The State Historical Society has an expansive collection of flags in its inventory, about 320 flags, to be exact.
“That ranges from American flags, foreign flags, military flags, organizational flags, commemorative flags,” said Lori Nohner, research historian. “We have all different shapes and sizes.”
These ranged from the 1890s to the present, and they each have a story to tell.
“Some of the earliest flags that were donated to the museum were from men from the North Dakota National Guard, it was then the first North Dakota Volunteer Infantry,” said Nohner.
Even some notable figures have made donations to the society’s collection.
“We have a few flags from James Buchli, the NASA astronaut who grew up in New Rockford. He took some North Dakota flags up in space,” said Nohner.
They also have within their collection a WWII Gold Star Flag. This flag was flown by your window to signify that a member of your family had died in the service.
But overall, these flags represent our history as North Dakotans and Americans.
“Flags are a visual representation of what’s happening in North Dakota,” said Nohner.
And they’ll live here at the State Historical Society’s inventory, standing the test of time.
Among the ocean of American and North Dakota flags, the State Historical Society also has protest flags and those from different local organizations.
Copyright 2026 KFYR. All rights reserved.
Ohio
2026 Winter Olympics guide to Ohio State, Ohioan Olympians and how to watch
Ohio State hockey becomes Olympics factory. How Muzerall does it
“When we win … we do it together,” says Nadine Muzerall, who has spent her decade at Ohio State winning a lot. The team has won two regular-season conference titles and two conference tournaments.
The 2026 Winter Olympics have arrived in Milano Cortina already, and the first Ohioans and Ohio State athletes begin play Feb. 5 with women’s hockey group play.
While seven Ohio-born Olympians will compete in this year’s games, the Buckeyes are sending 12 current or former collegiate athletes to compete for multiple countries in women’s hockey.
Besides hockey, four Ohioans will compete in the freestyle skiing aerials events in the men’s, women’s and mixed disciplines.
Here’s your complete guide to Ohio’s Olympians, including viewing options and event dates and times for watching the athletes representing the Buckeye State:
What events feature Ohio State, Ohioan athletes in 2026 Winter Olympics?
Four events will feature Ohioans or Ohio State athletes at the upcoming games in Milano Cortina: men’s and women’s hockey, and men’s and women’s freestyle skiing.
Women’s hockey
Ohio will have a majority of its Olympic representation via Ohio State women’s hockey, including five current Buckeyes who will represent their countries at Milano Cortina. You can read more about these Buckeyes and their path to the Winter Games here.
Ohio State women’s hockey at the 2026 Winter Olympics
Current Ohio State players
- Joy Dunne, United States
- Sanni Vanhanen, Finland (2022 bronze medalist)
- Hilda Svensson, Sweden
- Jenna Raunio, Sweden
- Mira Jungaker, Sweden
Ohio State women’s hockey alumni
- Cayla Barnes, Seattle Torrent (PWHL), United States (Class of 2024, gold medalist in 2018, silver medalist in 2022)
- Hannah Bilka, United States (class of 2024)
- Jenn Gardiner, Canada (class of 2024)
- Sophie Jaques, Canada (class of 2024)
- Emma Maltais, Canada (class of 2023, gold medalist in 2022)
- Natalie Spooner, Canada (class of 2012, four-time Olympian, silver medalist in 2018, gold medalist in 2014, 2022)
- Andrea Braendli, Switzerland (class of 2022, three-time Olympian)
Ohioans competing in women’s hockey
Laila Edwards – Cleveland Heights, Wisconsin women’s hockey
Edwards is a two-time NCAA national champion with Wisconsin. She is sixth in the country in points per game in 2025 and led the NCAA last season in goals with 35.
Edwards is the first black woman to play for the U.S. women’s hockey team and will become the first black woman to play hockey for the U.S. at the Olympics.
Gwyneth Philips – Athens, PWHL Ottawa Charge
Philips was a finalist for PWHL Rookie of the Year and Goaltender of the Year in the 2024-25 season after being selected by the Charge with the 14th draft pick. She also led the league in playoff saves with 257 and was awarded the playoff MVP award despite finishing as a runner-up to the Minnesota Frost in the finals.
Edwards played college hockey at Northeastern and went to high school in Pittsburgh.
Men’s hockey
J.T. Miller, East Palestine, NHL New York Rangers
Miller is a 14-year NHL veteran center who has spent the majority of his career with the New York Rangers. He was drafted No. 15 overall by the Rangers and was traded back to his original team in the 2024-25 season from the Vancouver Canucks. He was named captain before the start of the Rangers’ season and will make his Olympics debut at Milano Cortina.
A Michigan native, Werenski is competing in his first Olympics on the U.S. team. He recorded one goal and five assists at the 2025 IIHF World Championships and helped the U.S. take home their first championship since 1933.
Elvis Merzlinkins, Latvia, Columbus Blue Jackets
The Blue Jackets goalie has experience in international play with Latvia in world championships from 2016 to 2018. This is his first Olympics.
Freestyle skiing
Kyra Dossa, Cleveland, women’s freestyle aerials
A former gymnast, Dossa converted to a skiier and finished eighth place in her first Freestyle Skiing World Cup appearance in 2024, according to her U.S. Ski and Snowboard profile. She will participate in the aerials category at Milano Cortina.
Connor Curran, Cincinnati, men’s freestyle aerials
Curran, 21, trained on a trampoline and tumbling team in Cincinnati to master flips in aerial skiing before relocating to Lake Placid, New York at age 13 to pursue his Olympic dreams, according to his Team USA profile. He then relocated to Park City, Utah at age 15 to join the city’s ski and snowboard aerials program.
Joining the Freestyle Skiing World Cup in the 2023-24 season, Curran has five career top-six finishes on the circuit. and won his first U.S. national championship in 2025 in Bristol, New York, according to his U.S. Ski and Snowboard profile.
Quinn Dehlinger, Cincinnati, men’s freestyle aerials
Dehlinger began freestyle skiing at age 10 and has been on the U.S. Ski and Snowboard team since 2020, according to his U.S. Ski and Snowboard profile. He won two world championships in 2023 and 2025 as a member of the Aerials mixed team and has four World Cup podium finishes.
Derek Krueger, Chagrin Falls, freestyle aerials
Krueger has been competing for the U.S. Ski Team since 2023; he has seven World Cup top-10 finishes.
When to watch Ohio State, Ohioan athletes compete at the 2026 Winter Olympics | TV and streaming info
Below are the schedules for the events in which Ohioan athletes will appear in for the Winter Games (all times in Eastern time).
All Olympic events listed below are available to stream on NBC’s streaming service Peacock. Games airing on national television will be noted with the channel below.
Bolded hockey teams include any of the players mentioned above.
Feb. 5
- Women’s hockey – group stage
- Sweden vs. Germany – 6:10 a.m.
- United States vs. Czechia – 10:40 a.m.
- TV: USA Network (re-airs at 5:30 p.m.)
- Canada vs. Finland – 3:10 p.m.
Feb. 6
- Women’s hockey – group stage
- Czechia vs. Switzerland – 8:40 a.m.
Feb. 7
- Women’s hockey – group stage
- Sweden vs. Italy – 8:40 a.m.
- TV: USA Network (only at 9 p.m.)
- United States vs. Finland – 10:40 a.m.
- TV: USA Network (re-airs at 6 p.m., 11 p.m.)
- Switzerland vs. Canada – 3:10 p.m.
- Sweden vs. Italy – 8:40 a.m.
Feb. 8
- Women’s hockey – group stage
- France vs. Sweden – 10:40 a.m.
- TV: USA Network (only at 8:30 p.m.)
- Czechia vs. Finland – 3:10 p.m.
- TV: USA Network (only at 5 p.m.)
- France vs. Sweden – 10:40 a.m.
Feb. 9
- Women’s hockey – group stage
- United States vs. Switzerland – 2:40 p.m.
- TV: USA Network (re-airs at 11 p.m.)
- Canada vs. Czechia – 3:10 p.m.
- TV USA Network (only at 5 p.m.)
- United States vs. Switzerland – 2:40 p.m.
Feb. 10
- Women’s hockey – group stage
- Japan vs. Sweden – 6:10 a.m.
- United States vs. Canada – 2:10 p.m.
- TV: USA Network (re-airs at 11 p.m.)
- Finland vs. Switzerland – 3:10 p.m.
Feb 12
- Men’s hockey – group stage
- United States vs. Latvia – 3:10 p.m.
- TV: USA Network (re-airs at 11 p.m.)
- United States vs. Latvia – 3:10 p.m.
Feb. 13
- Women’s hockey quarterfinals (Teams TBD)
- 10:40 a.m., (Peacock) 3:10 p.m. (USA Network)
Feb. 14
- Women’s hockey quarterfinals (teams TBD)
- 10:40 a.m. (CNBC), 3:10 p.m. (CNBC)
- Men’s hockey – group stage
- Germany vs. Latvia – 6 a.m.
- United States vs. Denmark – 3:10 p.m.
- TV: USA Network (re-airs at 11 p.m.)
Feb. 15
- Men’s hockey – group stage
- Denmark vs. Latvia – 1:10 p.m.
- United States vs. Germany – 3:10 p.m.
Feb. 16
- Women’s hockey semifinals (teams TBD)
- 10:40 a.m. (NBC), 3:10 p.m. (USA Network)
Feb. 17
- Men’s hockey – playoff (teams TBD)
- 6:10 a.m. (2), 10:40 a.m., 3:10 p.m
- Women’s and men’s aerials qualifying
- Women’s – 4:45 a.m.
- TV: USA Network (re-airs at 6:15 p.m.)
- Men’s – 7:30 a.m.
- TV: USA Network (re-airs at 7 p.m.)
- TV: men’s and women’s on NBC at 12 p.m.
- Women’s – 4:45 a.m.
Feb. 18
- Men’s hockey – quarterfinal (teams TBD)
- 6:10 a.m., 8:10 a.m., 10:40 a.m., 3:10 p.m.
- TV: USA Network (10:40 a.m., 1 p.m., 6 p.m.), NBC (3:10 p.m.)
- Women’s aerials final – 5:30 a.m.
- TV: USA Network (re-airs at 4:30 p.m.), NBC at 1:30 p.m.
Feb. 19
- Women’s hockey bronze, gold medal matches
- Bronze medal match – 8:40 a.m.
- TV: USA Network (12 p.m., re-airs at 10 p.m.)
- Gold medal match – 1:10 p.m.
- TV: USA Network (re-airs at 11 p.m.)
- Bronze medal match – 8:40 a.m.
- Men’s aerials final – 5:30 a.m.
- TV: USA Network (NBC at 12 p.m.)
Feb 20
- Men’s hockey – semifinals
- 10:40 a.m. (USA Network at 11:50 a.m., re-airs at 6 p.m.), 3:10 p.m. (NBC, re-airs at 11p.m. on USA Network)
Feb 21
- Mens’ hockey – bronze medal match (teams TBD)
- 2:40 p.m. (USA Network, re-airs at 7 p.m. on CNBC, 11 p.m. on USA Network)
- Mixed team aerials final – 4:45 a.m.
- TV: USA Network (re-airs at 12:15 p.m.), NBC at 4:30 p.m.
Feb. 22
- Men’s hockey – gold medal match (teams TBD)
- 8:10 a.m. (NBC, re-airs at 4:30 p.m. on USA Network)
South Dakota
House committee squashes half-century tax break for SD data centers
PIERRE — Controversial data centers built in South Dakota won’t get a sales tax break—at least not yet.
The House State Affairs committee met Feb. 4 to weigh House Bill 1005, a bill which would have given owners and operators of qualifying data centers exemptions on the state’s sales and use tax for investments made in computer software and “enterprise information technology equipment”—a wide array of computer hardware, servers, power infrastructure, maintenance and security systems.
The exemption would apply to data centers that are issued a building permit between July 1 and June 30, 2036.
Data centers are physical facilities that house servers and networking equipment, which are typically used to store, manage, process and distribute large amounts of data.
Some of the common types of modern data centers include:
- AI data centers, which are specifically designed to support artificial intelligence applications;
- Colocation data centers, where third-parties manage the servers and components;
- Cloud data centers, where major providers, like AMS, Microsoft and Google, host cloud-based data and applications; and
- Enterprise data centers, which are often used for private uses by corporations.
Particularly large data centers are sometimes known as “hyperscalers.” These facilities can cost hundreds of millions to billions of dollars and require hundreds of acres of land to build, with construction at-times occurring in multi-year phases.
The legislation would have required businesses to submit documentation to the secretary of the state Department of Revenue, who would determine if the data center’s eligibility for the tax exemption.
A data center would have been able to receive the break if it could prove the facility’s electrical demands were under a written agreement or rate schedule that avoids shifting electrical costs to other consumers; and notice was given to local water providers that the site’s water consumption was “compatible for the location,” per the bill’s language. Data center owners would have also had to file an annual affidavit that discloses whether the business continues to meet the eligibility criteria.
However, those documents would have been considered confidential under the proposed legislation.
The bill was rejected by the committee, with nine members voting for and three against the legislation. Sioux Falls Republican Bethany Soye was excused from the vote.
Supporters of the legislation told committee members the sales tax break was essential to give data center investors and developers enough incentive to build in the Mount Rushmore state.
State Rep. Kent Roe, R-Hayti, who drafted the legislation, urged the committee to green-light the tax break on the premise that the state would reap a bounty of benefits—from “immense” property tax revenue and the creation of new high-quality jobs, to diversifying the state’s economic makeup.
Roe said other states have already legislated or otherwise implemented sales tax exclusions, and South Dakota needs a similar policy to remain competitive.
“We tax this technology higher than most,” Roe said. “That’s the truth. President Trump has stressed America’s need to lead. Our senators and congressmen highlight AI’s role in health care and national security. This is a national concern.”
Data center lobby uses well-worn revenue pitch
Steve DelBianco, president of NetChoice, a D.C. e-commerce trade group, threw out big numbers to buoy the benefits argument. Over the next 10 years, he projected $333 milllion of new property tax revenue to South Dakota from data centers alone.
For Jay Grabow, chair of the Deuel County Commission, the existential crisis his area faces is real. In 1920, per historical U.S. Census publications, Deuel County once called 8,759 people local inhabitants. Fast-forward to 2024, the county’s population has more-than-halved to 4,335, according to the U.S. Census Bureau.
Some of that Grabow attributes to the farming industry becoming more efficient over time—driving people per acre down—and the loss of at least one 200-employee business.
That means increased taxes over a smaller taxable population, Grabow said. And it also means Dallas-based Applied Digital, which is proposing a 430 megawatt AI data center east of Toronto, South Dakota, is, in the commissioner’s eyes, a means to lowering property taxes.
“We’re merely trying to keep what we had, merely trying to figure out a better way to do property taxes than to burden it on the people,” Grabow said. “If we can spread that across a $400 million billing, we have $1.1 billion of assets today. That’s a nearly-40% increase on our assets that we can spread those taxes across. That’s a 10 to 15% property tax [cut] across the board for those people.”
The economic windfall arguments resembled the debate over carbon pipelines over the last several years, when pipeline companies and some analysts projected an Iowa company’s transmission line could generate billions in the state and lower local taxes, as seen in previous Argus Leader reporting.
DelBianco said businesses and governments have increased their use of the cloud in recent years. The tech industry is tasked with building 50 data centers a year to keep up with U.S. demand, he added.
But the supply can’t be met if South Dakota doesn’t give developers and businesses a big-enough carrot to offset the significant capital investments they would make, DelBianco said.
Nick Phillips, executive vice-president for external affairs of Digital Applied, said South Dakota has been “unintentionally tax[ing] itself out of this market” under the current tax policy.
“The siting decision is binary,” Phillips said. “A project is built here or it is built somewhere else … Other states are capturing the investment, the jobs, and the long-term tax base.”
“The truth is that it’s just fiscally irresponsible to spend a billion dollars on a data center and have the equipment [that] goes in there, be subject to sales tax, when a billion dollar manufacturing, agricultural, another facility doesn’t pay sales tax on its equipment,” DelBianco added . “There are 40 states that exempt the equipment, so we have to pick the states that welcome through that policy.”
Data center opposition says tech threatens South Dakota’s largest industry
But opponents viewed the Big Tech push as an infringement upon South Dakota’s already No. 1 industry: agriculture.
Michelle Oftedahl, a Toronto, South Dakota, farm owner who lives a few miles away from Applied Digital’s proposed data center, spoke to the “unintended consequences” of boosting data centers. Farmland often out-prices what young farmers can afford to break into the ag industry, Oftedahl said, but it’s not too much for corporations with billions of dollars to spare.
Incentivizing data centers, the fifth-generation farmer added, would give rise to companies “buy[ing] land up cheap, knowing that they can cash in on possible future expansion projects, such as power plants, substations, and transmission lines, things that are needed to support the high amount of energy production required.”
“Encouraging large-scale economic development like data centers risks discouraging many young people from choosing agriculture for their future,” Oftedahl said. “This isn’t simply a vote about a sales tax exemption. It’s a statement about our values. Is South Dakota still first and foremost an ag state, or is large industrial economic [sic] now more important?”
Sara Steever, a retired Lennox resident who formerly led Sioux Falls agri-marketing agency Paulsen, questioned whether companies “worth billions and trillions of dollars” needed the tax breaks.
“Turns out that the fact that we can provide access to the megawatts of energy that is needed is tremendously valu[able],” Steever said as a remote testifier. “These companies don’t need tax breaks. They need connectivity, which we already have.”
Dakota Rural Action Lobbyist Melissa McCauley said the bill would lead to a “huge miss on revenue” for the state, given what she perceived as the broad nature of the proposed exemption.
“We are concerned that nearly everything needed to outfit the data center down to its door locks, security cameras, and even the cost of laying the fiber to the center would be exempt,” McCauley said. She asked openly whether a fiscal note should be added to the bill.
Tax break eligibility would not be public record under Roe bill
The stipulation that a data center’s eligibility documents would not be public record rankled opponents—some lawmakers, too.
Austin Adee, a Deuel County resident, said that section of the bill would create an “NDA-shielded secret court.” House Speaker Jon Hansen, who is running for South Dakota governor in 2026, raked the measure over this.
“This particular measure lacks transparency,” said House Speaker Jon Hansen. “The information goes to the secretary of the Department of Revenue, who can unilaterally decide without real qualification whether or not there’s going to be a tax break or not, whether or not rates are going to pass on, whether rate increases are going to pass on to consumers, and the people aren’t entitled to see any of the documentation that supports that decision. I think that’s wrong.”
The bill split the few Democrats on the committee, with Rosebud State Rep. Eric Emery supporting the legislation and House Minority Leader Erin Healy, of Sioux Falls, against it.
Emery asked Roe if the initiative behind the data center push included any guarantees that they would bring the promised jobs and wage-growth, to which Roe responded, “there’s no guarantees.”
Roe expounded upon this later, though, by pointing to the property tax revenue Applied Digital would likely bring to Deuel County—”north of $5 million” per annum, the Hayti lawmaker said, which is close to half of the county’s total budget.
At one point, Emery made a motion to send HB 1005 to the floor without a recommendation from the committee. Assistant Majority Leader of the House Marty Overweg spurned the idea, calling it “bad committee policy.” The motion died on a 5–7 vote.
Healy noted the day’s hearing lacked testimony from Sioux Falls stakeholders, despite a surge of public input in the city.
“I do believe that there is potential economic impact for data centers, but I also believe that economic development should never move faster than public input and transparency and also accountability,” Healy said.
House members will likely have to take up the debate once more during the 101st Legislative Session, as State Sen. Casey Crabtree, a Madison Republican who works for an area energy provider, filed a similar bill in the hours after the committee’s Feb. 4 decision.
The new legislation, a self-titled “Data Center Bill of Rights for Citizens”—akin to Crabtree’s 2024 “Landowner Bill of Rights,” which offered concessions to carbon pipeline opponents in order to ease pipeline development in South Dakota—also intends to exempt data centers from paying a sales and use tax for purchases made in developing a site, while also clarifying regulatory authority and preventing electric rate shifts onto consumers.
Crabtree’s bill does not provide an end-date on the sales and use tax exemption.
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