South Dakota’s $30M Housing Fund Is Now Available for Airport Loans
South Dakota’s Rules Review Committee voted 4-2 on July 14, 2026, to approve rules allowing up to $30 million from the state’s housing infrastructure loan fund to finance airport expansion projects in Rapid City and Sioux Falls. Each airport is eligible for up to $15 million at 2% interest, repayable over 20 years. Repayments must flow back into the housing fund for future housing infrastructure use.
The housing fund itself was created in 2023 with $200 million split between grants and loans for streets, sewer, water, and other infrastructure tied to housing development. That package combined $150 million in state money with $50 million in federal American Rescue Plan funds. Diverting any portion of it to airports was never part of the original purpose.
$200 million was appropriated for housing infrastructure in 2023. Up to $30 million of the loan portion can now go to airports instead.
Two Lawmakers Said the Vote Count Was Constitutionally Insufficient
Sen. Taffy Howard of Rapid City and House Speaker Jon Hansen of Dell Rapids both voted no. Their objection was procedural: they argued the legislation changing how the housing funds can be used required a two-thirds majority in both chambers. It did not reach that threshold.
The bill passed 22-11 in the Senate, two votes short of two-thirds. It passed 43-24 in the House, four votes short.
During the legislative session, Hansen, as presiding officer, tried to require a two-thirds vote. Lawmakers overruled him 34-33, arguing the bill did not use the word “appropriation” and that loaning funds is different from spending them.
The state constitution requires a two-thirds vote on appropriations bills. Whether redirecting how previously appropriated funds can be used counts as a new appropriation is the legal question Hansen says the Legislature still needs to answer.
“The Legislature should revisit how it defines appropriations.”
House Speaker Jon Hansen, R-Dell Rapids, Rules Review Committee hearing, July 14, 2026
Hansen, who ran unsuccessfully for the Republican gubernatorial nomination in June 2026 and is not seeking reelection, said Tuesday the definition should cover not just new spending authorizations but changes to the purpose of previously appropriated money.
What you can do now
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Call your South Dakota state representative at the Legislative Research Council’s main line, (605) 773-3251, and ask them to support a formal definition of “appropriation” that covers changes to how previously allocated housing funds can be spent. The current ambiguity allowed this diversion.
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Contact your state senator directly. Find your South Dakota senator’s contact information at sdlegislature.gov/legislators. Ask them whether they believe the 22-11 Senate vote on this bill met the constitutional two-thirds standard and how they will vote if the definition question comes before the Legislature.
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Submit public comment to the Governor’s office. Gov. Larry Rhoden requested this law and signed it in March. Reach his office at (605) 773-3212 and ask whether he supports a statutory clarification that housing infrastructure funds remain dedicated to housing.
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Track the housing fund balance. The South Dakota Governor’s Office of Economic Development administers the housing fund. Contact them at sdreadytowork.com or (605) 773-3301 to ask for the current loan balance and how much remains available for housing-specific projects.