PIERRE, S.D. (SDBA) — The South Dakota House approved a bill today (Thursday) that provides a $15 million interest-free loan from the state housing infrastructure fund to the Douglas School District to construct or expand school facilities near Ellsworth Air Force Base.
After intense debate over using the Housing Infrastructure Fund for school construction instead of its original housing purpose, the Senate passed SB 6 41-28.
Representative Taylor Rehfeldt, a Sioux Falls Republican who sponsored the amendment, emphasized the importance of supporting the air base’s expansion.
“Hosting a federal military base isn’t just an honor for South Dakota. It’s a privilege,” Rehfeldt said. “Ellsworth is actually the second-largest employer in the state. It fuels our economy, strengthens our communities, and plays a critical role in our national defense.”
An amendment substantially changed the bill, rewriting the original legislation. The amended version states that the loan requires repayment over 20 years at zero percent interest and requires no collateral.
Rep. Liz May, R-Kyle, expressed concern about setting a precedent.
“We have 148 school districts that all need help. They all have projects,” May said. “I think by doing this, coming out of the housing authority, it looks to me like we’re putting authority on top of authority.”
Rep. Steve Duffy, R-Rapid City, defended the measure as essential for supporting military families.
“The men and women who fly and maintain this airplane do something most of us have never done,” Duffy said. “The last thing they want to think about is, ‘I wonder how my kids are doing in the mobile home or the mess tent that they’re using as a classroom.’”
Representative Tim Goodwin, R-Rapid City, sought to ease tensions during the debate.
“Just a couple of things. I just want to talk to the people that are not in favor of this. And the first thing I want to say, if you vote for this, or if you vote against this, you’re not being unpatriotic,” Goodwin said.
Of the $200 million originally allocated to the Housing Infrastructure Fund in 2023, approximately $85 million remains unused. The bill now returns to the Senate, which must decide whether to concur with the House amendments.
Rep. David Kull, R-Brandon, noted Ellsworth’s expansion of the new B-21 Raider bomber will bring thousands of military personnel and families to the area.
“This is a partnership,” Rep. Tim Czmowski, R-Lincoln County, said. “In business, you keep doing business with the people that are partners. This is part of our national defense, and it’s a huge part of South Dakota’s economy.”
The Senate will now need to concur with the House’s changes to the bill. If senators reject the House version, the chambers would likely appoint a conference committee to reconcile the differences between the two chambers’ versions before the legislation can move forward.
