The South Dakota Senate on Tuesday (March 3, 2026) failed to pass a bill that would have authorized $87 million in federal spending authority for broadband expansion grants through the Governor’s Office of Economic Development.
HB 1048 failed by a 22-12 vote, missing the two-thirds majority because of it was an appropriation and had an emergency clauses.
The bill would have appropriated $87,000,000 in federal fund expenditure authority for broadband expansion grants tied to the federal Broadband Equity, Access, and Deployment (BEAD) program. Supporters argued South Dakota should use the federal allocation for broadband infrastructure. Opponents argued technology options have changed and questioned whether a large, fiber-focused buildout is still needed.
The chair of the Joint Committee on Appropriations introduced HB 1048 at the request of the Governor’s Office of Economic Development. The bill language says the money would be used for grants “to expand broadband infrastructure in this state, in accordance with the federal guidelines.”
In the Senate debate, proponents highlighted that the money was designated for broadband and would be redirected if the state failed to utilize it.
“This was allocated by the federal government for us to use. If we’re not using this, it goes back to the federal government,” said Sen. Michael Rohl, R-Aberdeen.
Opponents pointed to alternatives, including satellite internet service.
“Well, I call up Starlink, and I pay a small $50 to $60 a month fee. And you know what? I have incredible high-speed internet right at my house with no fiber needed to come there,” said Sen. John Carley, R-Piedmont.
Another issue raised during debate was affordability after construction.
“Just because we run the fiber there doesn’t mean they (homeowners) got access,” said Sen. Kevin D. Jensen, R-Canton.
Because HB 1048 included an emergency clause, it required a two-thirds vote to pass. However, one of the bill’s supporters, Rep. Glen Vilhauer, R-Watertown, gave notice to reconsider the vote.
By Todd Epp | South Dakota Broadcasters Association.
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