Question: In South Dakota v. Dole, what did the United States Supreme Court hold? Multiple Choice Social welfare reforms that the government wants to implement must be approved by the states. A federal statute that grants federal funds for state highways to only those states in which 21 is the legal drinking age is constitutional. South Dakota had the right to collect taxes on pineapples shipped from Hawaii. States cannot tax other states. States have the right to tax other states through the Commerce Clause.