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# South Dakota Raises Airport Grant Match to 7%
- URL: https://www.theamericanquorum.com/state-news-south-dakota-2026-09-19-b/
- Published: 2026-09-19T11:43:03.000Z
- Updated: 2026-09-19T11:43:03.000Z
- Description: South Dakota raised its standard state match for most public-airport grants from 5% to 7% and adopted a terminal-funding formula offering up to $4 million, while Rapid City and Sioux Falls remain at 5%.
- Author: News Desk
- Tags: State News, South Dakota

South Dakota has raised its standard state match for most public-airport grants from 5% to 7%, a change intended to put more state money behind local aviation projects outside the state’s two largest commercial airports. The [new policy](https://dot.sd.gov/inside-sddot/media/press-releases/south-dakota-aeronautics-commission-approves-updated-funding-policy-to-support-airport-terminal-development/?ref=theamericanquorum.com), approved by the South Dakota Aeronautics Commission at its September meeting, leaves the state match for Rapid City Regional Airport and Sioux Falls Regional Airport at 5%.

The commission also adopted a tiered formula for commercial-service airport terminal projects. Under the [formula](https://news.sd.gov/news?id=news%5Fkb%5Farticle%5Fview&sys%5Fid=c8b9be5b97d307507fc1b480f053afc9&ref=theamericanquorum.com), the state contribution can range from $250,000 to $4 million depending on project size, but it applies only to portions of terminal buildings devoted to public, non-revenue-producing use. The state announcement did not identify specific terminal projects, award recipients or a timetable for the first grants under the revised system.

That distinction matters for airport sponsors preparing capital plans. Public spaces such as passenger circulation and waiting areas may qualify under the newly described framework, while revenue-producing portions of a terminal would fall outside it; the commission’s release did not provide a detailed eligibility list. The practical effect is greater certainty about the ceiling on state participation, but local airport owners will still need a complete financing package and commission approval before construction proceeds.

The policy change sits within a statewide system that includes 56 public-use airports, according to South Dakota’s [aviation plan](https://dot.sd.gov/transportation/aviation/aviation-systems-plan/?ref=theamericanquorum.com). That plan identifies safety, infrastructure development and user access as statewide goals, and it treats airports as economic infrastructure for activities ranging from agricultural aviation to tourism and business travel. Smaller airports often have fewer local resources to assemble the match for capital work, so increasing the state share from 5% to 7% reduces—but does not eliminate—the local financing obligation.

The revision also separates two kinds of state support. The across-the-board match increase applies to public-airport grants other than those for Rapid City and Sioux Falls, while the terminal formula is limited to qualifying space at commercial-service airports. Airport sponsors should therefore not assume that every building expense is eligible for the top $4 million contribution or that the higher 7% rate replaces the terminal formula.

The Aeronautics Commission has statutory responsibility to supervise civil-aeronautics functions and allocate money for a statewide airport system, according to its official [authority page](https://boardsandcommissions.sd.gov/Information.aspx?BoardID=5&ref=theamericanquorum.com). The seven-member body is administered by the Department of Transportation while retaining quasi-legislative, quasi-judicial and advisory functions.

Transportation Secretary Joel Jundt said the revision is designed to support major terminal needs while preserving the aeronautics fund over time. For communities and airport boards, the next consequential details will be the commission’s application guidance, how it classifies eligible public terminal space and which projects receive the first commitments. Until those decisions are published, the change establishes a larger state role without specifying the total near-term cost to the aeronautics fund.