Oct. 24, 2025

Gov. Larry Rhoden’s administration will propose offering $30 million in no-interest loans to support expansions at the Sioux Falls and Rapid City airports.

If approved by the South Dakota Legislature, the money would come from unused loan dollars tied to a housing infrastructure fund established several years ago. No one applied to use that money.

The Sioux Falls and Rapid City airports both have set records for passenger growth in recent years and have improvement projects underway.

In Sioux Falls, the plan is to add a net gain of four gates plus a set of restrooms. If funding is available, a fifth gate and additional seating could be added.

Rapid City started an expansion in 2023 to address luggage screening, the TSA checkpoint and ticket counters. A gate expansion would increase jet bridge capacity from seven to 12.

“Both of those expansions are very much needed,” Rhoden said, noting that passenger traffic in Sioux Falls is up more than 25 percent in the past six years, while Rapid City is up 30 percent.

“Those are staggering increases in just a six-year period, and the numbers are tracking well ahead of last year.”

The zero-interest loans would be capped at $15 million for each airport and be repaid back into the state’s REDI fund over 20 years.

“Now is the time these dollars be used to solve other problems,” Rhoden said. “This investment will make a huge difference not just for Sioux Falls or Rapid City but for all of South Dakota.”

The city of Sioux Falls also has offered the airport a similar loan capped at $5 million.

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