South Dakota approves $650 million prison to replace one of the country’s oldest facilities

SIOUX FALLS, S.D. — South Dakota lawmakers in a special session approved a plan to spend $650 million to build a new 1,500-bed state prison in Sioux Falls, replacing one of the nation’s oldest correctional facilities.

The bill, narrowly passed Tuesday night, directs the state to close the 140-year-old penitentiary that predates South Dakota’s statehood and relocate inmates to a modern facility designed to address persistent overcrowding, violence and contraband concerns that have plagued the current site. Officials say the new prison will be larger and incorporate a design more conducive to safety, rehabilitation and staff efficiency. It will be the most expensive taxpayer-funded project in South Dakota’s history dates back to the state’s founding in 1889.

The decision was celebrated by Gov. Larry Rhoden, who said, “Few things that we've done are as significant as what we're doing here today,” before signing the measure into law. The administration framed the project as a necessary step to modernize corrections infrastructure and address long-standing concerns about inmate safety and programming capacity.

Supporters noted that the new facility would allow rehabilitative programming, expanded mental health support and work opportunities that the current prison cannot accommodate at its current size. They argued that a modern design would help reduce incidents such as inmate fights and the smuggling of contraband, issues repeatedly cited by corrections officials and independent consultants.

The move comes as the state has been pursuing a tougher approach to crime, contrasting with broader trends in other states where Democratic lawmakers have advanced leniency measures or closed facilities. Officials stressed that South Dakota’s approach reflects its own security, fiscal and public safety priorities.

The plan’s origins trace to a broader push to alleviate overcrowding exacerbated by a truth-in-sentencing bill that requires some violent offenders to serve the full term before becoming eligible for parole. A consultant’s report accompanying the plan projected that South Dakota could face spending of up to $2 billion over the next decade to maintain or expand inmate capacity if growth continues unchecked.

Supporters emphasized that the upcoming facility would provide a safer working environment for guards and better living conditions for inmates, with space dedicated to programming, mental health treatment and vocational activities—elements they say are essential to reducing recidivism over time.

The project follows a prior attempt to fund an $825 million prison, which failed in the Legislature earlier this year. In response, Rhoden assembled a summer task force comprised of lawmakers and state officials to reassess the size and location of a new facility. Lieutenant Governor Tony Venhuizen, who chaired the task force, said the process was careful and deliberate, even as it moved with urgency given the ongoing overcrowding.

Critics had pointed to leadership concerns at the Corrections Department, noting that the secretary’s resignation amid ongoing problems at the old penitentiary helped shift support toward building a new prison. Regardless of the backstory, Rhoden’s administration framed the vote as a decisive move to address systemic failures and to safeguard public safety in the years ahead.

The new prison is slated to be located in Sioux Falls, a choice explained in part by the availability of municipal services required to support a large facility and a trained corrections workforce that already serves the city. Officials argued that proximity to existing infrastructure would shorten construction challenges and facilitate staffing once the facility opens.

Officials expect construction to take about four years, with a plan to close the old penitentiary once the new facility becomes operational. The timing aligns with projections that the state’s inmate population will continue to grow under current sentencing laws, reinforcing the argument for a modern, larger complex.

South Dakota’s decision to proceed with a larger, state-funded prison in a year when other states have narrowed penalties or closed facilities reflects a specific evaluation of costs, capacity and public safety needs. While critics question the long-term fiscal impact, supporters frame the project as a long-needed modernization that could stabilize the corrections system and reduce recurring crises at the current site.