The South Dakota Aeronautics Commission approved significant updates to its funding policy at its regularly scheduled September meeting, strengthening state support for airport terminal development. The policy changes address growing infrastructure needs and modernize how state aeronautics funds are allocated to commercial service airport terminal projects.
“The Commission recognizes the significant infrastructure needs facing our airports and has responded with a proactive funding strategy,” said SDDOT Secretary Joel Jundt. “These policy updates provide flexibility to support major terminal projects while maintaining a strong aeronautics fund for the long term.”
In addition to adopting a new formula for terminal project funding, the Commission also approved an increase in the state match for all public airport grants (except Rapid City and Sioux Falls airports who will remain at five (5) percent) raising the standard match rate from five (5) percent to seven (7) percent. This adjustment strengthens support for smaller airports across South Dakota and helps ensure critical general aviation infrastructure continues to meet community needs.
The newly adopted terminal‑funding policy establishes a tiered, percentage‑based formula to determine state financial participation in terminal projects. This structure applies only to portions of terminal buildings dedicated to public, non‑revenue‑generating use, with maximum state contributions ranging from $250,000 to $4 million depending on project size.
The Commission emphasized that these changes provide clearer expectations for airport sponsors and ensure state resources are aligned with long‑term aviation system needs in communities across South Dakota.
