Rapid City, SD – A potential federal government shutdown could soon slow down or halt several critical projects and funding streams for Rapid City and the surrounding Black Hills area, though initial impacts are expected to be minimal.
Rapid City Finance Director Daniel Ainslie stated that he doesn’t anticipate much impact over the first couple of weeks of a shutdown. City operations funded by local revenue should continue uninterrupted in the immediate term.
However, if a shutdown extends long term, significant financial and administrative hurdles will emerge. The city could see impacts to its revenue streams, particularly grant and bond reimbursements. Specifically, the Community Development Block Grant (CDBG) funding, a key source for housing, community development, and infrastructure projects, would be jeopardized.
In addition to funding delays, critical development and construction projects could stall due to a lack of federal oversight. Reviews and approvals of permits from federal agencies like the Federal Emergency Management Agency (FEMA) and the Army Corps of Engineers will stop. This administrative freeze could halt or significantly delay essential infrastructure work, development near floodplains, or projects requiring environmental review in the Black Hills.
State parks will not be affected. National parks such as the Mount Rushmore National Memorial should stay open but staff will likely be staffed by skeleton crews. National park staff are preparing this morning to go on furlough starting at Noon today. An estimated 16,000 employees across the nation will be on furlough.