Transportation Economic Development Grants
The South Dakota Department of Transportation has developed a grant program to foster economic development and enhance community access in South Dakota. The program has three categorical purposes.
The Industrial Park grants will be made to any local unit of government for the development of new or expanded access for new industry located within industrial parks. Applications are due April 15, July 15, or October 15.
The Agri-Business grants will be made to any local unit of government for the development of new or expanded agri-business industries. Applications are due April 15, July 15, or October 15.
Community Access Grants are state funds for towns less than 5,000 in population and are for the construction or reconstruction of major streets in each town such as Main Street, the road to the elevator, schools, hospitals, etc. Applications are due July 15.
These programs provide for 80% of the construction costs of the project, not including engineering or utility work. Grant size is limited to $600,000 for Community Access and Agri-Business Grants and $500,000 for Industrial Park Grants.
Application Should Include
Clear map showing the project location
Engineer's Estimate
Resolution of support from the local sponsor
Project Requirements
Designed in accordance with the South Dakota Department of Transportation Standard Specifications for Roads and Bridges
Must comply with the American's with Disabilities Act
Funds cannot be used for routine maintenance
Must have plans and specifications stamped by a registered professional engineer
All grants will be based on the criteria developed by the Department of Transportation. The expenditure authority for the program will be determined by the Transportation Commission. All grants must be approved by the Transportation Commission and may be used to construct or reconstruct roads and streets in the community.
All aspects of these grant programs are outlined in the Fact Sheets and Policies for Industrial Park, Agri-Business Access, and Community Access Grant Programs.
South Dakota Transportation Commission Awards Economic Development Grants
At the South Dakota Transportation Commission meeting held on Tuesday, Sept. 22, 2026, Commissioners awarded $2.36 million in economic development grants for infrastructure improvements to rural communities across the state. The funds are designated to improve roads leading to schools, main business areas, hospitals, grain elevators, and other economic areas within a community. The economic development grants may cover 80 percent of the construction costs up to a maximum of $500,000 for Industrial Park Grants and $600,000 for Community Access and Agri-business Grants.
“South Dakota rural communities are able to grow and thrive through the economic development grants provided by the South Dakota Department of Transportation (SDDOT),” said Transportation Secretary Joel Jundt. “By supporting local infrastructure improvements, we’re helping communities strengthen their economies, create opportunities, and build a foundation for continued growth today and into the future.”
The following Community Access Grants were awarded by the Transportation Commission on:
Community Access Grants:
City of Bryant - $600,000 grant award for Railway Street which serves Farmers Union Co-op and the downtown business area;
City of Hoven - $556,200 grant award for Railroad Avenue and O’Gorman Street which serves the local elevator;
City of Leola - $600,000 grant award for Leola Avenue which serves the local school; and
City of Parker - $600,000 grant award for Main Avenue which serves the main business area and the schools.
Applications are still being accepted for Industrial Park and Agri-business Grants through Thursday, Oct. 15, 2026, to complete the 2027 grant cycle.
