PIERRE - Gov. Dennis Daugaard says South Dakota could lose at least $10 million in federal funding from automatic spending cuts set to take effect Friday, but he is most worried about what will happen to programs that educate struggling students and help low-income people heat their homes and put food on the table.

Daugaard says state officials are still trying to understand exactly what will be cut.

The Republican governor says he wishes the federal cuts could have been targeted in a way to limit harm to people and prevent layoffs.

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