Lawmakers seek a share of $31 million in unallocated funds

Jeff Mehlhaff, deputy director and chief fiscal analyst for the Legislative Research Council, presents fiscal year 2026 and 2027 revenue projections to the legislative Joint Appropriations Committee on Feb. 11, 2026, at the South Dakota Capitol in Pierre. (Photo by Makenzie Huber/South Dakota Searchlight)

Makenzie Huber/South Dakota Searchlight

South Dakota lawmakers have whittled down ideas of how to use at least $31 million in one-time state funding from nearly 30 to under a dozen.

Gov. Larry Rhoden told lawmakers in December that he left $14.4 million in his recommended budget for them to spend on special projects. Lawmakers learned in February that pot of cash grew by $16.8 million as updated revenue numbers came in.

Some of the largest special requests from the Legislature include road repair near Ellsworth Air Force Base in western South Dakota, grants to help victims of domestic violence and sexual abuse, and protective gear for volunteer firefighters.

The bills must receive two-thirds majority support from the House and Senate in order to spend the money. The final one-time figure could change as the budget process plays out with two weeks left in this year’s legislative session.

Senate endorses $8 million for roads near Ellsworth

The B-21 Raider stealth bomber will soon call South Dakota home at the Ellsworth Air Force Base near Rapid City. Local roads are stressed by the construction traffic and work underway for projects to accommodate the new planes.

State Sen. Helene Duhamel, R-Rapid City, claps and welcomes students to the Senate gallery in Pierre on Feb. 10, 2026. (Photo by Makenzie Huber/South Dakota Searchlight)
State Sen. Helene Duhamel, R-Rapid City, claps and welcomes students to the Senate gallery in Pierre on Feb. 10, 2026. (Photo by Makenzie Huber/South Dakota Searchlight)

Sen. Helene Duhamel, R-Rapid City, introduced Senate Bill 130, which would transfer $8 million from the general fund to the South Dakota Ellsworth Development Authority to help restore the roads.

The investment “shows that South Dakota is willing to stand behind this significant federal investment,” Duhamel told lawmakers in the Senate on Thursday.

Sen. Taffy Howard, R-Rapid City, also spoke in support of the bill. She said up to 250 double semi trucks drove on roadways “never designed for that volume or weight” during peak construction time. That traffic accelerates degradation of the roads.

“If we fail to act, local communities will shoulder the burden of infrastructure damage caused by a federal mission that benefits our entire state and nation,” Howard said.

The bill passed with support from every senator present on Thursday and now heads to the House.

‘Seed money’ for water projects

bill introduced by Duhamel would allocate $3 million from the general fund to a proposed water infrastructure development fund to support the construction, planning and development of water projects in the state. It passed the Senate with a 30-3 vote on Thursday and goes to the House next.

Duhamel told lawmakers the “seed money” and “savings account for water” would strengthen local systems and reduce long-term costs to taxpayers by avoiding emergency borrowing in times of crisis.

“Clean, dependable water is not optional: It is foundational to agriculture, small towns, schools, hospitals, industry and economic growth. It’s foundational to public health,” Duhamel said.

Other requests

Senators also passed a bill that would appropriate $5 million to the state Department of Revenue to deposit into existing rural access infrastructure funds, which help local governments repair and replace critical small bridges and culverts. The bill passed the Senate with a 31-1 vote and will next be considered by the House.

South Dakota representatives supported House Bill 1262 in a 61-5 vote, sending the bill to the Senate. The bill would give the state Department of Education $2 million to grant to a qualified nonprofit to build a non-residential facility serving students who have behavioral health concerns with school-based, therapeutic services.

Another bill allocating $5 million to the state Department of Public Safety to offer personal protective equipment grants for volunteer firefighters throughout the state was endorsed by the budget committee and is scheduled to be heard on the Senate floor on Monday. Lawmakers approved similar grant funding four years ago.

Grant funding to nonprofit organizations serving victims of sexual abuse and domestic violence was approved by the Joint Appropriations Committee on Thursday, though with an undetermined amount of funding. The organizations have lost federal funding in recent years and are facing millions of dollars in shortfall, said Rep. Erik Muckey, D-Sioux Falls, who sits on the budget committee.

“If we do not pass this, the devastation to our communities by not having access to these resources would be unimaginable and place a lot of folks in great harm,” Muckey said.

Other general fund appropriation requests still alive include:

  • House Bill 1244, which allocates $500,000 toward a program meant to teach life, leadership and educational skills to students facing barriers to graduation, employment or postsecondary education. The funding would be used to expand the program to more schools throughout the state and boost private fundraising for the program; it passed the House on Wednesday with a 51-14 vote and is headed to the Senate.
  • House Bill 1086, which allocates $2.7 million to the Department of Corrections to provide a programming grant to support inmates and correctional officers; it will be heard on the House floor on Monday.
  • House Bill 1202, which allocates an undetermined amount to help Lake Area Technical College to construct a trades center on the Watertown campus. The bill originally requested $5.2 million; it will be heard on the House floor on Monday.
  • Senate Bill 220, which allocates $50,000 to the Department of Corrections to study juvenile corrections and residential facility improvements. The bill failed to get two-thirds majority support in the Senate on Thursday, but the vote was close enough that it could be reconsidered.
  • Senate Bill 222, which allocates $10 million to the Department of Agriculture and Natural Resources to provide surface water quality grants. The bill passed the Senate 28-5 this week and is headed to the House.

Education funding bills to boost teacher retention, improve afterschool care for children, establish cardiac emergency plans, address rising costs of utilities and insurance, and create a fund to provide zero interest construction loans for schools were rejected by the Joint Appropriations Committee.

Appropriators also tabled proposals to spend one-time funding on increased benefits for recipients of Temporary Assistance for Needy Families and improve reimbursements for federally qualified health centers, which are public clinics that provide health care to underserved populations. Those bills are dead unless a chamber orders them to the floor.