South Dakota Lawmakers Approve $650 Million Prison Bill

Photo: Gov. Larry Rhoden addresses the South Dakota House of Representatives during a special legislative session on a new prison funding bill on Sept. 23. | Photo Credit: Courtesy of the Office of Gov. Larry Rhoden

PIERRE, S.D. – On Tuesday (Sept. 23), legislators in South Dakota approved a bill to construct a new $650 million, 1,500-bed men’s prison in Sioux Falls — a major step in a multi-year endeavor to replace the 144-year-old South Dakota State Penitentiary. 

After hours of deliberation during a special legislative session, Senate Bill 2 passed with the two-thirds majority votes needed from the South Dakota Senate and House of Representatives. 

The passage of the bill also formally establishes a new Correctional Rehabilitation Task Force, which Gov. Larry Rhoden introduced last week. The task force will assess programming needs for inmates including faith-based and Native American-focused programs, study best practices for re-entry and recommend how to best use the expanded space at the new prison. 

“As our state has grown, so has the number of criminals who need rehabilitation,” said Gov. Rhoden in an address to the South Dakota House of Representatives. 

“If the primary goal of the government is to keep people safe, we can and we must do better. That means making long-term investments in public safety and placing an emphasis on reducing recidivism and getting offenders back to work.” 

Project Background 

The plans for a new prison first took shape in 2021, when the South Dakota Department of Corrections hired DLR Group to study the state’s prison needs, resulting in recommendations to build new women’s and men’s facilities to replace the aging State Penitentiary. 

In February 2022, former Gov. Kristi Noem appointed Kellie Wasko as Secretary of the DOC, and the following month, Noem signed a bill that created an Incarceration Construction Fund (ICF) for the projects. In March 2023, Noem authorized the $87 million, 288-bed women’s facility project in Rapid City using money from that fund, and construction began in October of that year. 

That same month, the state selected a farm ground in rural Lincoln County as the potential site for the next men’s prison. In the ensuing months, Noem signed a series of bills appropriating millions to the ICF for the project. But by November of 2024, estimated construction costs had ballooned to $825 million, sparking opposition from constituents and legislators alike. 

In February 2025, a measure to fund the project failed to pass a South Dakota House of Representatives vote. In response, Gov. Rhoden — who assumed office the previous month — announced a Project Prison Reset task force aimed at bringing together lawmakers, law enforcement officials and key stakeholders to evaluate the best course forward. As part of those efforts, in April, the state hired Arrington Watkins Architects to perform a new feasibility study for the new men’s prison. 

In July 2025, the task force approved a new plan to build a 1,500-bed facility at a maximum cost of $650 million. The following month, Gov. Rhoden announced that a site on Benson Road in northeastern Sioux Falls had been selected for the new prison. 

Then, on Sept. 1, Secretary Wasko announced her resignation in a letter to Gov. Rhoden. Wasko’s resignation had been viewed by many as a clearing of the way for the Gov. Rhoden-supported plan to be approved during the Sept. 23 special legislative session. 

Just weeks later, Gov. Rhoden released the full plan for the new prison ahead of the Sept. 23 vote. Gov. Rhoden said the plan, designed by the joint venture of JE Dunn Construction and Henry Carlson Company — would achieve a 100-year life span and save South Dakota taxpayers more than $154 million compared to previous plan. The JE Dunn-Henry Carlson team has committed to the guaranteed maximum project cost of $650 million. 

But even with those savings, pursuing the failed Lincoln County plan cost South Dakota taxpayers $21 million. 

What’s Next 

The officially swaps the land of the former Lincoln County site to the 179-acre site on Benson Road, moves more than $78 million from the state’s general fund to the ICF and appropriates the total funding needed for construction from the ICF. 

According to the plans for the new jail, inmates will be housed in four separate buildings containing 1,188 cell beds and 300 dorm beds. The new facility will offer 40 square feet of dayroom space per inmate, exceeding the 35-square-foot ratio required in American Correctional Association standards. 

Rhoden says the new prison triples the vocational training space offered at the current state penitentiary and offers increased space for faith-based rehabilitation. He also stresses that it was designed with security and public safety at top of mind. 

“While this plan cuts costs, it does not cut corners on security,” he said. 

Before the vote, supporters and opponents of the bill addressed Senate and House members. Project proponents said a new prison has been long overdue and that the current proposal is the best plan to have come forward, while opponents argued that the money would be better spent on programming and upgrading other facilities across the state. 

Construction on the project is expected to take four years to complete. 

Stay tuned to Correctional News for ongoing coverage of this project.