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SDDOT secretary warns of federal reauthorization timing, highlights $24M discretionary award
Summary
Secretary Joel Warren told commissioners the House signaled reauthorization will likely slip past August recess and the House passed a CR extending funding to Dec. 4; Warren also reported a $24 million discretionary award for South Veterans Parkway and extended deadlines for remaining local HIP bridge funds.
Joel Warren, secretary (presenting the department’s report), told the commission the House indicated surface transportation reauthorization legislation likely will not be taken before the August recess, making a short‑term extension probable to keep the highway program operating through Sept. 30. "If they do not pass an extension by September 30, it is very problematic to the degree that even Federal Highway will not be able to operate," Warren said.
Warren added that on July 20 the House passed a continuing resolution to keep federal funding at FY2026 levels through Dec. 4; that CR now moves to the Senate. On state‑administered historic bridge funds (HIP), Warren said the department originally allocated $20,800,000 to local governments; six local governments still had unspent allocations totaling about $287,000. Jackson County and the City of Eagan requested extensions, and the department extended the expenditure deadline to Dec. 31, 2027, or else the local entities may be billed for reimbursement.
Warren also reported a discretionary Bridge Investment for Local Transportation (BIL) award for the South Veterans Parkway project of about $24,000,000, which will be shared with the City of Sioux Falls to supplement formula funding. He characterized this as discretionary funding above formula allocations.
Commissioner Mike Vallee asked whether the two local extension requests were part of the six outstanding allocations; Warren confirmed they were and explained how unspent local allocations are reconciled back into the highway trust fund if not expended by the extended deadline.
Warren closed with project updates including a letting date change (Platte Winter Bridge letting moved to Aug. 5) and completion status on slide repair work near Mobridge, where contractor‑furnished borrow was used and final quantities and private contractor agreements remained unsettled.
