State Transportation Funding Allows Counties and Cities to Prioritize Local Transportation Needs

For Immediate Release:
Thursday, June 26, 2025

Contact:
Julie Stevenson, Strategic Communications Coordinator, 605-773-2898

PIERRE, S.D. –  The South Dakota Department of Transportation (SDDOT) provided nearly $40 million in state highway funding to counties and Class I city governments in June 2025. The funds will be provided to the local governments in either state highway funds or through federal aid projects. This funding provides counties and Class 1 cities additional resources to improve their highways and bridges and to address immediate critical infrastructure needs.

“The Transportation Commission and the South Dakota Department of Transportation recognize the need for our counties and cities to invest in local priorities,” said Transportation Secretary Joel Jundt. “Although there is not a law requiring allocation of state highway funds to local governmental entities, the Transportation Commission has consistently recognized the interconnection of transportation systems, regardless of ownership, and the need for local control of investments. These state funds provide funding flexibility and help our partners maintain and enhance their local transportation systems.”

Over $28 million of state highway funds were provided in June 2025. These funds are comprised of fuel tax and excise tax. Nearly $11 million in funds will be used to offset loans for existing or future projects. Additionally, a little more than $0.5 million will be provided to counties to improve pavement markings on paved roads. All 66 counties, and the 18 Class 1 cities with a population over 5,000, will receive state highway funding to help maintain, preserve, repair, and reconstruct roads and bridges. Generally, transportation projects for local governments are funded through annual license plate fees, fees instituted in the county such as wheel tax, and various other levies. 

Additional state funding opportunities such as the Bridge Improvement Grant (BIG) program, Economic Development grants, and Transportation Alternative (TA) program grants will be provided to local governments throughout the year. Information about each funding opportunity is available on the SDDOT website at https://dot.sd.gov.

The Transportation Commission has authorized over $140 million in transportation funding to local governments over the last year in the form of grants, state funding, and federal aid.

About the SDDOT:
The mission of the South Dakota Department of Transportation is to provide a safe and efficient public transportation system.

Read more about the innovative work of the SDDOT at https://dot.sd.gov.

For the latest on road and weather conditions, road closures, construction work zones, commercial vehicle restrictions, and traffic incidents, please visit https://sd511.org or dial 511.

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