PIERRE - South Dakota Gov. Dennis Daugaard has signed into law a measure that sets up a state scholarship that will award money based on students' financial need.

When the Legislature passed the bill last week, Senate Republican Leader Russell Olson of Wentworth said South Dakota until now has been the only state without a scholarship based on financial need.

The new law provides $200,000 to fund the first year of the scholarship program. It also provides $1.5 million to a trust fund, with investment earnings to be used to finance scholarships in later years.

Universities, technical schools and trade schools taking part in the program must provide $3 in scholarship money for every $1 awarded in state money.

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