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Senate panel approves loan authority to help Sioux Falls and Rapid City airport expansions

South Dakota Legislature committee hearings (House Health & Human Services; Senate Commerce and Energy) · February 19, 2026

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Summary

The Senate Commerce and Energy Committee unanimously approved an amendment authorizing loans from the Housing Infrastructure Fund to support airport infrastructure projects in Rapid City and Sioux Falls, returning repayments to the housing fund and leveraging federal earmarks and local matches.

Pierre — The Senate Commerce and Energy Committee unanimously approved Senate Bill 76 (as amended), authorizing loans from the South Dakota Housing Infrastructure Fund to support airport infrastructure projects in Rapid City and Sioux Falls.

Commissioner Bill Eaven (GOED) and airport executives described recent passenger growth and outlined funding stacks that include federal earmarks, FAA entitlements, city matches and proposed state 0% loans. Patrick Dame, executive director of Rapid City Airport, said Rapid City has seen passenger growth of roughly 26% over two years and needs additional gates and concourse capacity; the city has approved roughly $44.5 million in local funding and recently secured about $20 million in federal earmarks.

Dan Lettler of Sioux Falls described a $70 million terminal project and a second phase projected at more than $50 million; Sioux Falls has pledged a $5 million local match if the state funds are available. Testimony noted loans would be repaid from existing airport revenue streams (passenger facility charges, parking revenue) and that payments would be returned to the housing infrastructure loan fund to preserve housing uses.

Senators emphasized partnerships among state, local and federal sources and praised the amendment that channels repayments back to the housing fund. The committee voted a due‑pass recommendation and the bill will move to the Senate floor.