From left, Iowa’s Kim Reynolds, Nebraska’s Jim Pillen and South Dakota’s Larry Rhoden participate in the Tri-State Governors’ Conference in Dakota Dunes on Aug. 26, 2025. (Makenzie Huber/South Dakota Searchlight)
DAKOTA DUNES — Business leaders in the Sioux City area are asking the governors of South Dakota, Iowa and Nebraska to help them secure hundreds of millions of dollars in federal funding for infrastructure improvements.
The projects include replacing a deteriorating runway and parking ramp at the 185th Air Refueling Wing in Sioux City, an Army Corps of Engineers study on Big Sioux River flooding, and upgrades to a Sioux City wastewater plant. The funding needs for the projects amount to about $653 million.
Presenters at the Tri-State Governors’ Conference also shared some concerns about federal funding under the Trump administration. South Dakota Gov. Larry Rhoden and Nebraska Gov. Jim Pillen told reporters after the conference that the way to address those concerns is leveraging personal connections with the administration and congressional delegates to address tri-state needs.
“It’s working really, really hard and developing relationships within the federal government,” Pillen said, referencing a meeting this week he has planned with Environmental Protection Agency Administrator Lee Zeldin. “It’s making sure that we have a tremendous sales pitch so they understand the best investment of tax dollars comes to the Great Plains.”
Iowa Gov. Kim Reynolds did not stay to answer media questions after the event. The three Republican governors met in Dakota Dunes, a South Dakota community just outside of Sioux City, where the three states’ borders meet.
Runway replacement
The National Defense Authorization Act, which passed out of the U.S. Senate Armed Services Committee in July, would allocate $148 million to the runway project for the 185th Air Refueling Wing, a unit of the Iowa Air National Guard. The Federal Aviation Administration designated an additional $20 million.
But that funding falls short of the total project cost of $180 million. All three governors said they would support the effort to secure additional funding.
“Even though the runway is located in Iowa, it’s a regional asset that supports all of us in this three-state area and beyond to our entire nation,” Rhoden said.
Without full funding, the city could ultimately lose its airport fire department, airport control tower, the KC-135 air refueling tanker mission and all Air National Guard flying activities, according to the presentation by local officials. The military unit employs over 900 servicemen and women living in the tri-state area.
Wastewater upgrades
The Sioux City Wastewater Treatment Plant is “overloaded” and deteriorating, said Ryan Callahan with RP Constructors. The facility deals with heavy industrial wastewater demands due to food processing companies in the city.
It’ll cost $470 million to make improvements to the facility and meet regulatory requirements by the U.S. Environmental Protection Agency and Iowa Department of Natural Resources. That’s too costly for local governments to handle on their own, Callahan said, asking the governors to “aggressively” pursue federal funding.
“This is a tri-state area issue,” Callahan said. “It’s also a water quality issue. Everybody that is contiguous to that river wants to have good water quality.”
Barbara Sloniker, executive vice president at the Siouxland Chamber of Commerce, said the city expected to receive funding from the Biden administration’s infrastructure programs, but is “a little uncertain” where the funding will come from under the Trump administration. The administration has made wide-ranging cuts to government programs since President Trump returned to office in January.
While Rhoden encouraged the attendees to explore working with the South Dakota Department of Agriculture and Natural Resources for possible state funding, Pillen said businesses driving the increased demand and need should help foot the bill before asking the government to step in.
“I think we should have the expectation that if we have an industry that is growing and making a lot of money in our communities, they should be part of solving that problem,” Pillen said. “I just don’t believe the state should pay for all of that.”
Pillen’s take is “somewhat true,” Sloniker said after the conference.
“If funding can be combined with state funds, that could help ease the burden on our taxpayers, which includes individuals and businesses,” Sloniker said.
Flood study
North Sioux City Administrator Jeff Dooley requested the governors use their positions to encourage the U.S. Army Corps of Engineers to fund a study of flooding on the Big Sioux River. The study is needed to reevaluate the nearly 50-year-old flood mitigation plan for the area.
The plan came under scrutiny last summer after major flooding on the Big Sioux River damaged or destroyed dozens of homes around McCook Lake, north of Sioux City. The goal of the flood mitigation plan was to protect North Sioux City, Dakota Dunes and parts of Sioux City by diverting floodwaters into McCook Lake, but the plan was overwhelmed by a historic volume of water.
“It’s going to be a huge lift, so the region will have to come together with the states and federal government,” Dooley said.
The study will cost $3 million and take four years to complete, said Rhoden, who added that his office and local leaders have been in contact with congressional delegates.
“We’re looking for ways to support that study and the local match,” Rhoden said.
Potential changes to the Federal Emergency Management Agency discussed by the Trump administration could put a greater burden on states to fund disaster preparedness and responses.
Pillen said he still expects FEMA to play a role.
“To say FEMA is over, I think that’d be a little dramatic,” he told South Dakota Searchlight after the conference.
Rhoden added that his “comfort level” is greater after meeting with Trump Cabinet members and administration leaders, adding that he’s “gotten results immediately” when he’s asked for help from the administration.
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