RAPID CITY, S.D. — Rapid City Regional Airport will receive $20 million in federal funding for a major terminal expansion as part of a $145.7 million Congressionally Directed Spending package secured by U.S. Sen. Mike Rounds.
The funding, included in the Transportation, Housing and Urban Development and Related Agencies appropriations bill, also allocates $30 million to Sioux Falls Regional Airport for its own terminal expansion project.
At Rapid City Regional Airport, the $20 million will support construction of five new gates, expanded passenger holdrooms, improved accessibility, and upgraded passenger amenities. Airport officials say the project is designed to address sustained growth in passenger demand and improve the overall travel experience in western South Dakota and the Black Hills.
“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 funding follows a record year for air travel in South Dakota. Rapid City Regional Airport ended 2025 with 452,195 enplanements, the highest total in its history. Sioux Falls Regional Airport also set a record, finishing the year with more than 750,000 enplanements.
Together, Rapid City Regional and Sioux Falls Regional airports handle more than 95% of the state’s commercial passenger traffic. Airport leaders say the terminal expansions will help both facilities manage long-term growth, strengthen air service options, and support economic activity across South Dakota.
The T-HUD appropriations bill was one of five federal spending measures approved last week as part of a broader budget package. Airport officials say the investments will play a key role in maintaining reliable air access for residents, businesses, and visitors traveling to Rapid City, the Black Hills, and communities across the state.
