Rhoden Proposes $30M in Zero-Interest Loans for Sioux Falls, Rapid City Airports

The funding bill aims to boost airport expansion projects, but faces pressure to ease property taxes instead.

Published on Feb. 26, 2026

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Gov. Larry Rhoden has proposed a bill that would allow the Sioux Falls and Rapid City regional airports to each apply for up to $15 million in zero-interest loans. The funding would come from a $200 million workforce housing program, with Rhoden arguing the money would be better used for airport expansions. The bill cleared its first hurdle in the state legislature, but could face opposition as some lawmakers push to use the funds to ease property taxes.

Why it matters

The proposed airport funding is seen as crucial infrastructure investment for the state's two largest cities, but the bill faces political headwinds as lawmakers debate how best to utilize the available funds, whether for airport projects or property tax relief.

The details

Senate Bill 76 would allow the Sioux Falls and Rapid City regional airports to each apply for up to $15 million in zero-interest loans from a $200 million fund originally allocated for workforce housing projects. With some of that housing money sitting unused, Rhoden argued it would be better utilized for the airport expansion efforts.

  • The bill cleared its first hurdle in the state legislature on Thursday, February 19, 2026.
  • The $200 million fund was originally allocated by lawmakers and former Gov. Kristi Noem for workforce housing projects.

The players

Gov. Larry Rhoden

The current governor of South Dakota, who proposed the bill to provide zero-interest loans to the Sioux Falls and Rapid City airports.

Sioux Falls Regional Airport

One of the two airports that would be eligible to apply for up to $15 million in zero-interest loans under Rhoden's proposal.

Rapid City Regional Airport

One of the two airports that would be eligible to apply for up to $15 million in zero-interest loans under Rhoden's proposal.

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What they’re saying

“With some of that housing money sitting unused, Rhoden argued it would be better utilized for the airport expansion efforts.”

— Gov. Larry Rhoden (thedakotascout.com)

What’s next

The bill will now move to additional legislative committees for further consideration before a potential vote by the full state legislature.

The takeaway

The proposed airport funding represents a shift in priorities for the state, as lawmakers weigh the merits of investing in critical infrastructure versus providing property tax relief. The outcome of this bill could have significant implications for the future development of Sioux Falls and Rapid City.