UPDATE: South Dakota’s Senate Bill 76, which aims to fund major airport expansions, just passed the Senate Commerce and Energy Committee unanimously. This development is a significant step towards securing state funding for growing airports in the state’s largest cities.
During a crucial meeting at the Capitol on December 14, 2025, city representatives rallied behind the bill, highlighting the urgent need for financial support in airport construction. Governor Rhoden had previously announced plans to allocate state funds for airport projects, but the original proposal faced opposition regarding fund allocation.
The revised bill allows airports in metropolitan areas with populations over 125,000 to access loans up to $15 million at zero percent interest. This change addresses concerns raised by stakeholders like Julie Johnson, a lobbyist with Homes for South Dakota, who emphasized the need to maintain funding for housing infrastructure as well.
“Public infrastructure projects like these benefit the entire state, just like roads and bridges,” stated Bill Even, Commissioner of the Governor’s Office of Economic Development. This funding is crucial for the Rapid City and Sioux Falls airports, which collectively generate billions in economic activity.
Both airports are currently undertaking major expansion projects, with Sioux Falls requiring $51.5 million and Rapid City needing $110 million. “We are currently $30 million short for Project Two of our expansion,” said Patrick Dame, Executive Director of the Rapid City Regional Airport. With passenger numbers soaring—Rapid City’s airport welcomed over 400,000 passengers in the last two years alone—expansion is essential for accommodating future growth.
Repayments for the loans will occur over a twenty-year period, primarily funded through parking revenues and passenger facility charges. For many South Dakotans, air travel is vital, especially from Rapid City, described as the most isolated metro area in the lower 48 states.
As this bill moves forward, it promises to reshape the landscape of air travel in South Dakota, making it easier for residents to access essential services and connect with the wider world. The unanimous support in committee indicates strong bipartisan backing, paving the way for further legislative action.
Stay tuned for updates as Senate Bill 76 progresses toward a full vote. This development is not just about airports; it represents a critical investment in South Dakota’s infrastructure and economic future.
