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Lawmakers hear $30 million proposal for airport terminal grants to sustain growth and economic development
Summary
Senate Bill 132 would appropriate $30 million in one‑time state funding for airport terminal improvements and expansions across South Dakota; proponents said airports are economic engines that enable tourism, business recruitment and workforce connections; the committee deferred action.
Senate Bill 132 would create a one‑time $30 million appropriation to support airport terminal improvements and expansions across the state. Proponents, including state senators, airport directors and economic development organizations, urged lawmakers to invest in airports to support economic development, tourism, and business recruitment.
Senator Kolbeck (sponsoring on the Senate side) and Representative/advocates said last year's $10 million allocation demonstrated broad statewide benefit after grants were distributed to multiple airports, and airports in Rapid City and Sioux Falls reported record passenger counts and rising demand. Rapid City and Sioux Falls airport directors described ongoing terminal projects and the need for local matches and federal funds; both airports said the state appropriation leverages federal and local funds and helps close gaps to complete projects.
BFM testified that the federal Airport Improvement Program (AIP) typically funds airfield infrastructure at a high federal share, but terminals are often not fully covered; BFM cautioned about the shift toward state terminal funding and asked appropriators to consider other priorities in the budget. Proponents argued terminals drive economic activity and cited recent local projects and federal grant opportunities, and they urged the Legislature to view the funding as a statewide investment that supports multiple industries.
Committee members asked about project lists, allocation approaches and whether smaller airports would be prioritized; proponents said criteria established last year guided grant decisions and that airports of all sizes received funds. The committee deferred action while reviewing funding priorities and potential allocations.
