– The Sioux Falls Regional Airport is poised for significant expansion, potentially paving the way for international flights, following the approval of a $30 million congressional appropriation. The funding will allow for a more ambitious scope of construction than initially planned, bolstering the airport’s capacity and future potential.
The appropriation, included in the fiscal year 2026 spending bill, will enable the addition of a net gain of five gates, increased seating areas, expanded retail and concession spaces, and crucially, the development of a customs facility. This facility is a prerequisite for securing international air travel routes, according to airport officials.
“It’s going to be a huge help in us completing this project and building it as we intended it to be,” stated Dan Letellier, executive director of the Sioux Falls Regional Airport. He credited the support of South Dakota’s senators, Mike Rounds and John Thune, as well as Congressman Johnson, for securing the funding.
The expansion project is particularly significant given the record passenger numbers experienced by the airport in . Sioux Falls Regional Airport surpassed 750,000 enplanements last year, marking an all-time high. Rapid City Regional Airport also reported record figures, with 452,195 enplanements.
The additional funding addresses concerns that a scaled-back project might not meet the expectations of passengers accustomed to the airport’s current amenities. Without the additional investment, Letellier explained, “adding quite a bit of space and not really adding any features to go with it would have been challenging.”
The total cost of the expanded project is estimated at $105 million, an increase of $35 million from the original $70 million base bid. Airport officials are exploring additional funding options, including potential no-interest loans from the state of South Dakota and the city of Sioux Falls, to cover the increased costs.
The congressional appropriation is part of a broader $145.7 million federal spending package for South Dakota, which also includes investments in rural healthcare facilities and affordable housing. Senator Rounds emphasized the importance of these projects for improving infrastructure and quality of life across the state.
Beyond the immediate benefits of increased capacity, the development of a customs facility positions Sioux Falls to become an international airport, potentially opening up new economic opportunities and connections. The airport currently hosts a Global Entry Enrollment Center, facilitating expedited customs clearance for travelers returning to the United States. Interviews for the program are scheduled Tuesdays through Thursdays.
The project timeline anticipates completion of the base build by early spring of . The addition of extra seating and an atrium area will necessitate the temporary closure of Gate 3, contingent upon the availability of the newly constructed gates. The revised completion goal is now set for the end of .
Letellier highlighted the significant economic impact of the airport, noting that it generates more than $900 million in annual economic benefit for the region. “The vast majority of people (for the entire state) are flying in and out of Sioux Falls,” he said, “and to be able to meet that growth that’s coming in the future and potentially lead us to international flying — I think that’s really exciting.”
The funding for both Sioux Falls and Rapid City airports is part of a larger $50 million allocation approved for airport projects across South Dakota. Rapid City Regional Airport will receive $20 million for its ongoing terminal expansion, which includes five new gates, expanded passenger holdrooms, improved accessibility features, and upgraded amenities.
The investments come at a crucial time for both airports, which are experiencing sustained growth in passenger traffic. The upgrades are intended to manage this growth, enhance the passenger experience, and support the broader statewide aviation system, which contributes significantly to the state’s economy.
