South Dakota’s two largest airports just landed a combined $50 million in federal funding as part of a $145.7 million Congressionally Directed Spending (CDS) package secured by U.S. Senator Mike Rounds.

Rapid City Regional Airport (RAP) will receive $20 million for its terminal expansion project, which includes five new gates, larger passenger holdrooms, improved accessibility, and upgraded passenger amenities. Sioux Falls Regional Airport will receive $30 million toward its own terminal expansion to help manage increased demand.

The funding follows a year of record-setting passenger volumes for both airports. RAP ended 2025 with 452,195 enplanements. Sioux Falls Regional Airport finished the year with over 762,000 enplanements, also an all-time high.

“This is serious investment in the infrastructure that keeps air service viable in South Dakota,” said Patrick Dame, Executive Director of Rapid City Regional Airport. “We appreciate Senator Rounds and his team for recognizing the urgency and helping move this forward.”

The airport funding comes via the Transportation, Housing and Urban Development and Related Agencies (T-HUD) appropriations bill, one of five passed last week in a broader federal spending package.

RAP and Sioux Falls Regional serve as the state’s primary commercial air gateways, handling over 95% of South Dakota’s total commercial passenger traffic. These terminal upgrades will help both airports manage sustained growth, improve passenger experience, and support a statewide aviation network that contributes hundreds of millions of dollars in economic impact each year.