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South Dakota Awards $54.8 Million in Water Infrastructure Funding

July 3, 2026

The South Dakota Department of Agriculture and Natural Resources announced that the Board of Water and Natural Resources has approved $54.8 million in loans and grants for water, wastewater and solid waste projects across the state.

The $54,856,749 total consists of $52,400,000 in low-interest loans, $2,000,000 in principal forgiveness and $456,749 in grants to be administered by the department.

Funds were awarded from DANR’s Clean Water State Revolving Fund Program, Solid Waste Management Program and ARPA funds. Hecla received a $2,500,000 Clean Water State Revolving Fund Program loan, including $2,000,000 in principal forgiveness, to improve its sanitary sewer collection system by replacing or relining 1,250 feet of sewer line and an existing lift station. The loan terms are 4.00% for 30 years.

Shared Resources, a joint effort between Minnehaha Community Water Corporation and the Big Sioux Community Water System, received an additional $206,749 in ARPA grant funds for its water treatment plant, well field, distribution pipeline and two storage tanks. Previous funding for the project was approved in January, and the latest award brings the total ARPA grant for the project to $51,148,897.

Sioux Falls received a $51,900,000 Clean Water State Revolving Fund Program loan to replace and upgrade aging wastewater treatment infrastructure at its Water Reclamation Facility, including new clarifiers, sludge pumping and splitter box systems intended to improve capacity and reliability. The loan terms are 3.75% for 20 years.

DANR itself also received a $250,000 Solid Waste Management Program grant to support the cleanup and disposal of PFAS fire suppression products, waste tires, hazardous chemicals and other solid waste. The Solid Waste Management Program provides loans and grants for disposal, recycling and waste tire projects, with the Legislature appropriating dedicated funding for the program annually through the Omnibus Water Funding Bill.

The State of South Dakota and the U.S. Environmental Protection Agency jointly fund the Clean Water and Drinking Water State Revolving Fund Programs, which provide low-interest loans for wastewater, stormwater, water conservation, nonpoint source and public drinking water system projects. The programs are funded through a combination of federal appropriations, loan repayments and bonds.

By: Montana Newsroom wire

Filed Under: News

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