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Nonprofit funding shrinking as Sioux Falls moves away from automatic subsidies

City-reliant organizations face 28 percent drop in available financial support

Patrick Lalley's avatar
Patrick Lalley
Aug 28, 2025
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Shawn Pritchett 082725.jpg
City of Sioux Falls Finance Director Shawn Pritchett during a media briefing at City Hall on Wednesday, Aug. 27, 2025. (Patrick Lalley / Sioux Falls Live)

Nonprofits and organizations that receive subsidies from the city of Sioux Falls now have to submit proposals in order to get funding next year.

The Community Partners Program is a change from direct subsidies and a reflection of Mayor Paul TenHaken's recalibration of spending in anticipation of a state-imposed property tax cap. The pool of money available — currently $1.2 million in the proposed budget — is a 28 percent reduction from the subsidy pool spent this year. That number requires approval by the City Council as part of the overall budget process, which must be completed by Sept. 30.

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Patrick Lalley
Patrick Lalley is the editor of Sioux Falls Live. plalley@siouxfallslive.com
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