FAA announces $970 million in grants to modernize airport terminals nationwide

The Federal Aviation Administration (FAA) is announcing $970 million in grants to upgrade airport terminals across the country. With funds spanning 46 states, Guam and Palau, these grants will support airport modernization efforts, reinforce economic growth, spark job creation and improve travel experiences for passengers. 

This latest round of funding is part of the $5 billion Airport Terminal Program, established under the Bipartisan Infrastructure Law, that offers funding opportunities to enhance and upgrade airport terminals nationwide.  

In this round, airports will be given grants up to $40 million to embark transformative facility improvements, multimodal transportation reimagining efforts and terminal safety, sustainability and accessibility initiatives.  

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The FAA is encouraging airports to pursue projects that enhance passenger comfort and operational capacity and efficiency. This includes funding for new baggage handling systems, larger security checkpoints, expanded terminal facilities and improved access to ground transportation options. 

Nine Airport Terminal Program projects are set to secure $20 million or more in grants. These projects include: 

• Tampa International Airport: $40 million to partially fund the construction of Terminal D, which would provide 16 new gates, nine passenger boarding bridges and an automated people mover track connecting to the main terminal building. 

• Washington Dulles International Airport: $40 million to partially fund the construction of a new 14 gate, 400,000 square foot terminal building. The terminal building would include direct connections to the Aerotrain and indirect connections to the Metrorail. 

• Phoenix Sky Harbor International Airport: $35 million to replace chillers, condensing water pumps, central plant heating, heat exchangers and cooling towers at the airport’s Central Utility Plant. 

• Miami International Airport: $35 million to fund two of six gates in the airport’s new Concourse K. The project will build passenger boarding bridges and a baggage handling system that connects with the main terminal building. 

• Austin-Bergstrom International Airport: $33.27 million to construct a new Midfield Terminal B as a part of the Midfield Terminal B construction project. By developing a new terminal, the airport anticipates adding at least 20 new gates to accommodate increased airline operations and competition. Additionally, the funds will specifically support the project’s second phase, which will construct a 518-foot underground tunnel that would connect the new terminal to the existing terminal. 

• Los Angeles World Airports: $30 million to fund portions of the LAX Terminal Roadways project. The project will construct roadways, ramps, bridges, pedestrian bridges, intersection improvements, traffic signals and controls, traffic monitoring and management systems, street lighting, signage, striping and sidewalk enhancements. 

• Philadelphia International Airport: $27.5 million to make improvements to the aging Terminal D and E upper levels. The project will address facilities that have reached the end of their “useful lives” which includes upgrades to the HVAC system and electrical efficiency improvements. 

• Chicago O’Hare International Airport: $20 million to expand O’Hare’s Terminal 5 to accommodate increased passengers and improve passenger circulation. The project will also reconfigure Transportation Security Administration Checkpoint #11. 

• Minneapolis-St. Paul International Airport: $20 million to expand the existing Terminal 1 building on Concourse G from Gates 8 to 13. The project will include five new single use restrooms, two multi-user restrooms, additional terminal passenger seating and energy efficient spaces. 

To see the remaining projects awarded grants under this funding cycle, check out the FAA’s FY2025 Airport Terminal Program Selections list. 

This round of grants under the Airport Terminal Program represents the fourth in a series of five annual funding cycles. Since the program’s first round in 2022, it has announced almost $3.9 billion in grants to support airport modernization initiatives nationwide. Over 100 previous projects funded under the program are already completed or nearing completion. 

One such project, allocated grants under the program’s FY 2022 cycle, was awarded a $60 million grant to make improvements at Denver International Airport’s (DIA) terminal facility. The project reimagined DIA’s baggage handling system to accommodate 100 million annual passengers and to increase energy efficiency. 

Looking ahead, the Airport Terminal Program is set to allocate its final round for FY 2026 late next year, which is expected to exhaust the program. 

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