Legislative panel hears ARPA update: $974.5M obligated, most spending due by end of 2026

The Bureau of Finance and Management told the South Dakota Joint Appropriations Committee on Jan. 16 that the state has fully obligated its $974,500,000 allocation of American Rescue Plan Act State Fiscal Recovery Funds and is in the process of spending the money across water and sewer projects, broadband, housing and health efforts.

"South Dakota's allocation was 974,500,000," Jim Twiliger, commissioner of the Bureau of Finance and Management, said during the committee's briefing. Twiliger told lawmakers the state had obligated the funds by the end of calendar year 2024 and that federal rules require most of the obligated money to be expended by the end of calendar year 2026.

Why it matters: The SFRF and the related Capital Projects Fund (CPF) are federal pandemic recovery grants intended for infrastructure, public services and community projects. How the state spends the remaining balances — and whether projects meet federal eligibility and reporting rules — will determine whether South Dakota keeps the funds and avoids federal recapture.

Most money is committed to environmental infrastructure: Twiliger said the largest share went to water and wastewater projects administered through…