On September 18, 2026, the South Dakota Aeronautics Commission unanimously approved key updates to its funding policy, a strategic move designed to bolster state support for airport terminal development across South Dakota. This pivotal policy change was discussed at the commission’s regular September meeting in Pierre, South Dakota’s capital. These updates directly address escalating infrastructure demands and aim to modernize the funding mechanisms for airport terminal projects, a pressing need recognized by the state’s aviation authorities.
South Dakota Aeronautics Commission
“The Commission recognizes the significant infrastructure needs facing our airports and has responded with a proactive funding strategy,” said Joel Jundt, Secretary of the South Dakota Department of Transportation (SDDOT). This remark underscores the commitment of the SDDOT to meet long-term aviation needs while supporting the local communities that rely on these crucial infrastructure enhancements.
The updated funding policy introduces a new, tiered, percentage-based formula for determining state financial participation in airport terminal projects. This novel approach only applies to sections of terminal buildings dedicated to public and non-revenue-generating use. The state’s contributions can range from $250,000 to $4 million, depending on the project’s size, which ensures that the funding is appropriately scaled to meet diverse project requirements.
Jack Dokken
In a decisive step to empower smaller airports, the Commission also sanctioned an increase in the state match rate for all public airport grants, except for those in Rapid City and Sioux Falls, which will continue at a 5% match rate. For other airports, the rate will rise from 5% to 7%. This adjustment strengthens the support framework for airports in smaller communities and ensures the sustainability and development of essential general aviation infrastructure.
The significance of these developments is manifold. First, they provide a transparent and robust framework for airport sponsors across South Dakota, helping them set clearer expectations. Second, they align state resources more efficiently with long-term aviation system needs within these communities. Lastly, they reflect a deep-seated commitment by the state to maintain a resilient and responsive aeronautics fund, promoting a safe and efficient public transportation system.
South Dakota, known for its expansive prairies and vibrant cultural history, is also home to various businesses and industries that rely heavily on its transportation infrastructure. The state’s focus on updating airport terminal facilities signals a broader initiative to bolster its transport network, essential for supporting economic growth and tourism, particularly in a region characterized by geographic vastness and dispersed population centers.
Joel Jundt
South Dakota’s commitment to enhancing its aviation infrastructure can be seen as a strategic investment in its future. As Secretary Jundt highlighted, “These policy updates provide flexibility to support major terminal projects while maintaining a strong aeronautics fund for the long term.” This strategic foresight ensures that South Dakota remains a vital hub for commerce and tourism in the northern United States.
For more information or inquiries, parties can reach out to Jack Dokken, the Air, Rail, & Transit Program Manager, via phone at 605-773-7045 or email at jack.dokken@state.sd.us.
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