DOT reports federal bill progress and warns legislature cut reduces construction authority by $20 million

Secretary Joel Jundt reported to the South Dakota Transportation Commission that Congress is working on a new surface transportation bill in both the House Transportation & Infrastructure Committee and the Senate Environment & Public Works Committee, work he said could shape federal funding for the next five years.

Jundt also summarized the state legislature’s actions on the Department’s fiscal year 2027 budget authority. He said the legislature reduced the Department’s construction funding line by $20 million (from $989.6 million to $969.6 million) and lowered railroad construction authority by $10 million (from $40.6 million to $30.6 million). He reported the approved FY2027 budget authority totals approximately $1.271 billion: $729,000 in general funds, $863.5 million in federal fund authority and $406.5 million in other fund authority. Jundt warned the Department may need to request additional budget authority depending on grant timing and when construction work begins.

The Commission received the report during the Secretary’s Report segment and did not take immediate formal action on the funding figures. Jundt also flagged three recently signed bills for the Commission’s information: HB 1227 (increasing the annual fee for plug-in electric vehicles from $50 to $100), SB 236 (creating the county and township infrastructure fund adjustments for the Rural Access Infrastructure Fund), and SB 240 (a $5 million appropriation for county rural access infrastructure, effective on the Governor’s signature).