Attorney General Marty Jackley has announced an agreement with the state senator accused of receiving over $600,000 in federal pandemic aid.
Meanwhile, the legislator in question - Republican Sen. Jessica Castleberry - said she is resigning her seat.
Jackley said the Rapid City lawmaker will repay most of the $603,229 in pandemic aid her business received.
Castleberry will repay $499,129 to the state. She will make the payments in monthly installments of $2,400, with a federal interest rate.
Castleberry runs the Little Nest Preschool in Rapid City.
During a press conference Thursday morning, Jackley said the remaining $104,100 were an appropriate pass-through of pandemic aid dollars to qualified needy families.
Jackley, who is also a Republican, said his office was looking for inappropriate expenditures by Castleberry, but found none.
“We found that all of the $603,229 went for daycare-related expenses, those that would satisfy the DSS—and many of them did satisfy the DSS approval process," Jackley said.
Despite that, Jackley said Castleberry inappropriately received the federal pandemic aid, which the state Supreme Court says the constitution prohibits.
“It would not be appropriate to have a sitting lawmaker—that has oversite responsibilities with funds receive those funds. That’s what’s embedded in our constitution," Jackley said. "A state lawmaker cannot receive a direct or indirect benefit with state contracts.”
Shortly after Jackley’s announcement, Castleberry formally resigned her seat in the state Senate.
"The Attorney General’s office conducted a thorough investigation into this matter and I am glad speculation from other state departments and the executive branch regarding my ethics and intentions can be laid to rest," Castleberry said in an email statement. "Today I formally resign from my position in the South Dakota Senate. I was humbled to be appointed and honored to be elected. Thank you for the opportunity to serve the people of the state of South Dakota."
Gov. Kristi Noem appointed Castleberry in 2019. She initially brought the case against Castleberry to the public’s attention.
Noem will appoint her replacement.
