PIERRE, S.D. — From aging rural bridges to water systems in need of modernization, South Dakota confronts major infrastructure challenges requiring substantial investments and novel approaches across virtually every sector.
Northern Plains News has drawn these conclusions from research on the state’s infrastructure.
Rural Transportation Needs
Counties throughout South Dakota are working to repair deteriorating rural infrastructure through the Rural Access Infrastructure Fund (RAIF), which allocates millions to fix culverts and bridges on secondary roads.
“Decades of underinvestment in regular repair have left many roads in poor condition, and the cost of repairing these roads is rising faster than we can address them,” said Fort Pierre Mayor Gloria Hanson, according to Smart Growth America.
A TripNet report reveals that 34 percent of South Dakota’s roads are in poor or mediocre condition, costing drivers $672 annually in repairs and other expenses.
Joel Jundt, Secretary of the South Dakota Department of Transportation, says the state’s transportation outlook is concerning.
“By 2034, nearly 30 percent of state-maintained roads are expected to be in fair or poor condition, which would exceed the department’s target of 20 percent,” Jundt told lawmakers in January 2025, as reported by South Dakota Searchlight.
Bridge Infrastructure
While road conditions are a significant concern, bridge infrastructure presents its own set of challenges. According to the Department of Transportation, bridge conditions are also expected to deteriorate over the next decade, though they should remain above the state’s goal of 95 percent of bridges being in good or fair condition.
The American Society of Civil Engineers’ 2021 Infrastructure Report Card noted that 17 percent of bridges in South Dakota are rated structurally deficient. However, the state maintains one of the better road condition ratings nationally, with 77 percent of roadways rated in good condition.
Major river crossings pose particular challenges. On January 16, 2025, Jundt told lawmakers:
“The Platte-Winner bridge, which is next on the state’s list, will cost about $250 million. The Forest City Bridge near Gettysburg will cost more than $400 million,” Jundt explained to lawmakers, according to South Dakota Searchlight. “It’s to the point where we’ve got to replace it.”
Water Infrastructure
Beyond transportation infrastructure, water systems across the state also need significant upgrades. Clean water infrastructure has seen substantial investment recently, with the South Dakota Board of Water and Natural Resources approving nearly $140 million in grants and low-interest loans for 39 public works projects statewide in March 2025, according to KXLG News.
“Safe and reliable water, wastewater, and solid waste infrastructure is essential for protecting our natural resources and building stronger communities for future generations,” said Department of Agriculture and Natural Resources Secretary Hunter Roberts, as reported by KXLG News.
Roberts has characterized recent federal funding as creating “a water renaissance that was overdue” in the state. His department awarded $689 million to 200 water-related projects across South Dakota during the past several years, he told a legislative committee in February 2025, according to South Dakota Searchlight.
“Those additional funds kind of spurred our utilities to get off their keister and make those investments that they maybe hadn’t made in 20 to 30 years,” Roberts said.
Sen. Helene Duhamel, R-Rapid City, recently introduced legislation to create a dedicated water infrastructure development fund.
“We cannot afford to delay investments in water infrastructure,” Duhamel said, according to South Dakota Searchlight. “The cost of inaction will be far greater than the cost of preparation.”
KC Becker, EPA Regional Administrator, highlighted the impact of water infrastructure investments in a February 2024 announcement of $42.9 million in federal funding:
“These projects are building new treatment and delivery systems, creating jobs and securing healthy watersheds and safe drinking water across the state,” Becker said, according to EPA’s press release.
Recent Tribal Infrastructure Investments
Native American reservations in South Dakota receive significant infrastructure investments to address long-standing challenges. The Bureau of Indian Affairs recently announced $42 million in funding from the Bipartisan Infrastructure Law for tribal dam safety and irrigation projects, including $26 million specifically allocated for Antelope Dam on the Rosebud Sioux Reservation.
The Bipartisan Infrastructure Law invests $13 billion directly into American Indian and Alaska Native tribal communities throughout the United States, with $250 million over five years dedicated to tribal dams and water projects.
Kevin Killer, former President of the Oglala Sioux Tribe and former state legislator, highlighted the importance of these investments to South Dakota Public Broadcasting in August 2022.
“Our Tribe is in desperate need of affordable broadband on our vast, remote Pine Ridge Indian Reservation,” Killer said. “[The grant] will allow our Tribal Nation and our Citizens to thrive in the evolving digital economy and spur much-needed economic development overall on our Reservation.”
Former South Dakota State Sen. Shawn Bordeaux, a Democrat, and member of the Rosebud Sioux Tribe who stepped down in 2024, told Stateline in January 2024 that their new broadband network “will prevent the region’s current provider, which has a monopoly, from dictating the price and quality of services for everyone in the area.”
The South Dakota Native Tourism Alliance has developed a five-year plan (2020-2025) featuring 43 priority initiatives. These initiatives include infrastructure projects, tourism attractions, and community development opportunities aimed at boosting local economies on tribal lands.
Additionally, according to the federal Economic Development Administration, the South Dakota Local Infrastructure Improvement Program provides grants to tribal governments for public infrastructure associated with economic development projects.
The Indigenous Economic Development Community of Practice notes that the Building Jobs, Building Homes project, led by Lakota Funds, is working to strengthen the residential construction industry serving Native communities across South Dakota’s nine reservations. The project addresses workforce development and housing infrastructure needs.
These investments aim to address the unique infrastructure challenges faced by tribal communities, including geographic isolation, limited existing infrastructure, and historical barriers to financing improvements.
Airport Modernization
As the state addresses its ground-based infrastructure needs, air travel facilities are also receiving attention. Airport improvements are recognized as vital to South Dakota’s infrastructure strategy for economic growth and tourism.
“An airport’s a vital part of business. If you want us to be a futuristic state… we’ve got to have airport service,” said Rep. Tim Goodwin, advocating for airport investments in comments reported by South Dakota Public Broadcasting.
Jundt highlighted the value of the $10 million South Dakota Airport Terminal Program (SDATP) in remarks reported by The Dakota Scout:
“The SDATP funds will play a pivotal role in strengthening aviation infrastructure and enhancing economic development in our state.”
Rapid City Regional Airport is undergoing a $200 million revamp to handle more passenger traffic tied to tourism attractions like Mount Rushmore, according to The Dakota Scout.
Rail System Upgrades
While air travel infrastructure is being modernized, South Dakota’s rail system, critical for agriculture, manufacturing, and construction industries, faces its own challenges. The system has numerous outdated lines with issues, including inadequate rail weight, deteriorating culverts, and insufficient capacity for modern railcars.
According to a report from Trains.com, projects like the Napa-Platte line rebuild and upgrades to the Rapid City, Pierre & Eastern Railroad aim to address these deficiencies. Federal funding opportunities, such as CRISI grants, are being pursued to address these needs comprehensively.
While South Dakota’s freight rail system continues to receive upgrades, the state remains one of only two in the contiguous United States without Amtrak passenger service. A recent legislative effort to support Amtrak expansion through South Dakota failed by a narrow 18-17 vote in the state Senate in March 2025, despite earlier passing the House 49-21. The proposed Denver to Minneapolis-St. Paul route would have connected Rapid City, Pierre, and Sioux Falls but faced concerns over its estimated $5.83 billion infrastructure cost.
Energy Infrastructure
As the state works to improve its transportation infrastructure, it also focuses on energy needs. According to South Dakota Searchlight, tribal and rural areas in South Dakota are set to benefit from $260 million in federal solar energy grants, including $125 million for rooftop solar projects in disadvantaged communities.
EnergySage says the average South Dakota solar shopper will save $4,186 from the federal tax credit alone.
Regarding carbon capture infrastructure, former Governor Larry Rhoden emphasized property rights in signing HB 1052, which prohibits eminent domain for CO2 pipelines. According to Pipeline Fighters, Rhoden stated that the ethanol industry remains vital to South Dakota’s economy and supports an “all-of-the-above” energy approach.
Sioux Falls Infrastructure Initiatives
Sioux Falls, South Dakota’s largest city, is undertaking several major infrastructure projects to accommodate its rapid growth. Mayor Paul TenHaken emphasized the importance of strategic infrastructure planning.
“We are keeping Sioux Falls investible by strategically planning for growth in every direction,” TenHaken said in December 2024.
According to Mark Cotter, the city’s director of public works, the city’s Public Works Department plans to make 2025 “an even bigger year” for road construction than 2024. Major projects include the construction of the state’s largest intersection at Arrowhead and Veterans parkways, featuring three pedestrian tunnels, and the city’s third diverging diamond interchange at 85th Street and Interstate 29.
Sioux Falls will invest approximately $70 million in its 2025 Capital Improvement Program, with five major projects dominating the agenda. These include the full reconstruction of the Cliff Avenue and I-229 interchange and an asphalt overlay on 12th Street from Ellis Road to Marion Road.
The city is also completing a three-year wastewater treatment plant expansion project in 2025, increasing treatment capacity by 50% from 21 million gallons per day to 30 million gallons per day. As Mayor TenHaken noted in his 2024 State of the City address, this expansion is crucial for supporting continued growth.
“Development and growth, in fact, cannot happen without utilities – wastewater, water and energy, he said.”
The Greater Sioux Falls Chamber of Commerce has emphasized that investments in wastewater infrastructure are critical for growth, citing a $14 million ARPA-funded project to expand capacity on the city’s west side.
Sioux Falls Regional Airport is planning a major expansion, including a $108 million concourse project that would add at least four additional gates and expanded amenities. However, the project faces funding challenges.
“Everybody needs to know, are we moving forward or not?” said Dan Letellier, executive director of Sioux Falls Regional Airport. He told Sioux Falls Business that the airport had set monthly passenger records in early 2025.
Housing Infrastructure
In 2023, the South Dakota Legislature passed Senate Bill 41, creating the Housing Infrastructure Financing Program with $200 million in funding. The program provides grants and low-interest loans for housing-related public infrastructure projects across the state. According to the South Dakota Housing Development Authority, 70 percent of funds ($140 million) are designated for communities outside Sioux Falls and Rapid City. As of early 2025, the program continues accepting applications with loans offered at 2 percent interest for up to ten years.
Funding Challenges and Federal Support
While progress is being made across various infrastructure sectors, funding remains a significant challenge. The state has benefited from federal infrastructure funding, with significant allocations from the Bipartisan Infrastructure Law and the American Rescue Plan Act.
However, according to an article from the National Conference of State Legislatures, Jundt says long-term funding remains a concern, as the Infrastructure Investment and Jobs Act expires in the fall of 2026.
Jundt told lawmakers in January that the state struggles to save for large infrastructure projects, noting that major projects like the Missouri River bridge crossings will strain state resources even with federal assistance.
But What About Likely Federal Funding Cuts or Freezes?
According to Utility Dive and Waste Dive, President Donald Trump’s January 20 “Unleashing American Energy” executive order has frozen billions in congressionally approved infrastructure funding. Despite court orders requiring fund release, many projects remain in limbo.
Grist reports that tribal governments and nonprofits have accrued significant unreimbursed expenses, and some organizations are considering layoffs. Twenty-two state attorneys general have challenged the freeze, arguing the administration cannot unilaterally cancel congressionally authorized spending as infrastructure stakeholders await resolution.
Moving Forward
As South Dakota continues to address its infrastructure challenges, state and local leaders emphasize the need for strategic investments that balance immediate needs with long-term planning.
Kristi Turman, deputy secretary with the state Department of Public Safety, highlighted the critical role of infrastructure in disaster recovery during her January 2025 testimony. She noted that emergency funds support “state agencies that respond to disasters, and for covering the state’s share of public assistance funds for local governments and utilities to fix infrastructure damage,” according to the Mi“
Federal funding opportunities, state-level initiatives, and coordinated planning efforts are helping South Dakota improve infrastructure across all sectors. These investments are essential for continued economic development and quality of life throughout the state.
