South Dakota Transportation Commission Doubles Funding for Local Government Assistance Grants

February 4, 2016

At its November 20th meeting, the South Dakota Transportation Commission adopted the South Dakota Department of Transportation's recommendation to double the total amount of funding available for three different grant programs designed to assist local government entities with road reconstruction needs. The programs were increased from a total amount of $2 million per year to $4 million per year. These additional funds were made available as the result of the passage last year of Senate Bill 1, which provides significant additional road and bridge funding for both state and local government entities.

The Department and Commission have long maintained what is collectively referred to as the 'economic development grant program' for local transportation projects. Within the program are three different types of grant funding for Industrial Park, Agri-Business and Community Access projects.

  • Industrial Park grants are intended to assist local government entities who need assistance with creating or expanding access to support development of new industry. Applications are due April 15, July 15, or October 15.
  • Agri-Business grants are intended to specifically address road needs associated with new businesses such as ethanol plants, elevators and other agriculture related businesses. Applications are due April 15, July 15, or October 15.
  • Community Access grants are available for small communities with less than 5,000 population to help with reconstructing important local roads such as their Main Street or roads to the elevator or schools. Applications are due July 15.

More information regarding the grant programs and the process for applying can be found on the Department of Transportation's website at

With the new funding levels, there is now available $500,000 for Industrial Park grants, $1.0 million for Agri­Business grants and $2.5 million for Community Access. Of the three programs, the Community Access grant program is easily the most popular and competitive. Last year, 27 applications were received requesting approximately $6.5 million in funding for projects directly benefiting small South Dakota communities. Because of the demand for funding through this program, if any of the funding for Agri-Business or Industrial Park grants is not awarded in a year, the remaining amount will be added to the Community Access grant program for that year.

For any questions or if you would like assistance with applying for one of these grants, contact Leslie or Melissa at 605-367-5390.