Key Policy Issues Take Shape Ahead of 2026 Legislative Session
Sioux Falls Airport Funding Gains Support From Executive Branch
On Oct. 24, Gov. Larry Rhoden, joined by the airport directors from Sioux Falls and Rapid City and legislators from each respective city, announced a plan from the executive branch to provide loans to support the expansions at both the Rapid City and Sioux Falls airports.
Under the governor’s plan, each airport would be eligible to receive loans of up to $15 million, to be paid off over 20 years, to help with airport terminal and gate expansion efforts at the state’s two largest airports.
The proposal comes at a critical time, as the Sioux Falls Airport Authority has just begun breaking ground to add an additional terminal and gates to accommodate continuing growth in demand by travelers.
The proposal must go before the South Dakota Legislature during the 2026 legislative session and be approved by each body before becoming law. However, the momentum is encouraging, and we will be advocating to see this effort cross the finish line.
Legislative Comprehensive Property Tax Task Force Gives Recommendations
Since May, a task force made up of 16 legislators and two nonlegislators met eight times between May and October to learn more about rising property taxes, and to find ways to potentially reduce the burden on owner-occupied property tax rates.
The committee had its final meeting on Oct. 22 and approved 19 proposals that will be introduced in the next legislative session.
The proposals are wide-ranging, varying from expanding current relief programs, putting restrictions on spending by school districts, counties and municipalities, and proposing a 5% cut to the state’s general fund budget.
A few of the proposals that would have the largest impact on the business community are adding restrictions to tax-increment financing districts and a potential decrease in funding to Medicaid providers, infrastructure and public education.
All of these proposals must be approved by each legislative body and signed by the governor during the 2026 legislative session if they were to go into effect. There will continue to be much debate on each of these proposals and many others that were not approved by this task force during session.
2026 Legislative Session
The 2026 Legislative Session will begin on Jan. 13. The two issues above are just a few of the dozens that the Greater Sioux Falls Chamber of Commerce will be advocating on in Pierre on behalf of our members over the coming months. If there are any legislative issues that you would like more information on, please reach out to the Chamber’s public policy team.