South Dakota’s legislature has passed a $650 million bill to build a new men’s prison in Sioux Falls, signaling a major overhaul of the state’s correctional infrastructure. The plan moves forward after overcoming opposition and securing final legislative approval.
Addressing Overcrowding and Modern Standards
The existing prison facilities in South Dakota face severe overcrowding and aging infrastructure. To address similar regional challenges, Nebraska recently awarded a $313 million contract to Hausmann Construction for a new 1,512-bed state prison. The project highlights how new correctional facilities are being designed to meet modern security, health, and rehabilitation standards, with plans that include expanded medical and mental health wings as well as upgraded security systems.
Supporters argue the facility is needed to separate high-risk prisoners, reduce liabilities, and improve safety for staff and inmates. Detractors raised concerns about cost escalation, site selection, and long-term maintenance burdens.
Funding, Oversight, and Risk
The $650 million is structured with state bond issuance and oversight mechanisms to prevent cost overruns. Major construction firms have already guaranteed they will not exceed that ceiling, even if site conditions or materials shift.
Critics caution that hidden costs, such as land acquisition, infrastructure extension, and long-term operations, could push the real price higher. Lawmakers insist accountability and audits will accompany expenditures.
Project Factsheet – Sioux Falls Correctional Facility
Project Name South Dakota Correctional Facility (Men’s Prison, Sioux Falls)
Approved Budget Up to $650 million
Site Location Benson Road, northeast Sioux Falls, 176 acres
Bed Capacity 1,500 total
Developer / Construction Model JE Dunn as construction manager at risk (GMP)
Timeline Start: Spring 2026; Full operations by about 2030
Program & Vocational Space Expanded space for rehabilitation & vocational training units
Legislative Safeguard Cost cap enforceable; overruns need 2/3 legislative vote
Site Advantage Proximity to existing city infrastructure and roads
Operational Funding Strategy Project to be paid in cash from state funds, no new debt according to leadership
Political Stakes & Public Debate
This prison bill has been one of the most contentious of the legislative session. It passed in the House with 51-18 and in the Senate 24-11. Some rural legislators argue the cost is too high, especially given other statewide priorities. Others argue that failing correctional conditions pose a public safety threat.
Advocates emphasized rehabilitation and facility improvements, while opponents pushed for investments in mental health, addiction treatment, and alternatives to incarceration.
Impact on Sioux Falls & Region
The new facility in northeast Sioux Falls, has access to utilities and transportation networks. Its presence is likely to anchor economic activity, jobs in construction, correctional work, and ancillary services.
Neighbors in the region worry about traffic, stigma, and property values. But city planners believe infrastructure investment and controlled site design will mitigate negative effects and integrate it responsibly into the growth plan.
Looking Ahead & Project Timeline
Groundbreaking begins in 2026, with phased occupancy beginning several years later. The state aims to transition inmates gradually as new sections become operational.
As the project proceeds, cost management, quality control, community engagement, and legislative transparency will be key determining factors for success.
This facility isn’t just a prison, it is a public infrastructure commitment. It signals how South Dakota is prioritizing incarceration reform alongside emerging debates on justice, mental health, and state growth.
