During the 2026 legislative session, South Dakota Governor Larry Rhoden will bring legislation to support the expansion of the Sioux Falls and Rapid City airports.
Rhoden’s proposal– which he announced Oct. 24, 2025, uses the same funding approach that supported the Douglas School District during the 2025 legislative session and will not create any additional costs for South Dakota taxpayers.
In 2023, the state set aside $200 million to support career housing in South Dakota – $100 million in grants that were quickly invested and $100 million in loans that have been partially used. That investment drove substantial growth in career housing across South Dakota. Of the original $100 million in loans, approximately $65 million remains. Rhoden’s proposal moves this remaining funding into the Revolving Economic Development and Initiative (REDI) Fund, and some of that will support this airport investment. From this funding, the Board of Economic Development may make 0% interest loans of up to $15 million for each airport. The loans must be closed and funded by June 30, 2030.
Since 2019, travelers through the Rapid City airport have increased by 30%, and travelers through the Sioux Falls airport have increased by 25%.
“This investment will make a huge difference – not just for Sioux Falls and Rapid City, but for all South Dakotans,” said Rhoden. “We’ve seen huge increases in travelers coming through these airports. With more gates, more flights, and more destinations, we’ll able to draw more visitors and keep our state Open for Opportunity!”
“Smart economic development involves doing the right thing, at the right place, at the right time. This proposal is a prime example of smart economic development, and it will lead to big wins for South Dakota,” said Bill Even, Commissioner of the Governor’s Office of Economic Development.
Comments