The state of South Dakota is planning to use almost $700 million for sewer and water projects before the funds become unavailable in 2026. The funds come from the remaining state allocations from the American Rescue Plan Act (ARPA), a $1.9 trillion pandemic aid package enacted in 2021.
ARPA provided approximately $350 billion in direct aid to state and local governments; however, those governments are required to allocate their remaining money by the end of this year and use it by 2026. Any money left over after the deadline will be returned to the federal government for other projects.
South Dakota legislators have allocated $600 million of the remaining funds for 200 individual water system upgrades and expansions, but only a third of that has been spent. With $94 million still left to allocate before the end of the year, lawmakers are looking to shovel the funds to pre-approved projects rather than taking on new proposals.
One bill is currently up for vote that suggests how to use ARPA funds. Senate bill 66 introduces using almost $13 million for “eligible state agency water, wastewater and storm water projects.”
Strategic Partnerships, Inc. can provide information on contract opportunities, plus existing and future government funding. For more information, contact research@spartnerships.com.
Photo courtesy of the city of Rapid City
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