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DOT opens $1B grant program to upgrade nation’s airports

December 17, 2025

The U.S. Department of Transportation (DOT) is calling for more civility in air travel and transit under the department’s “Golden Age of Travel” initiative. Under this effort, the department has opened $1 billion in Airport Terminal Program funding seeking to improve travel experiences for families nationwide. 

The funding under the Infrastructure Investment and Jobs Act was announced on Dec. 8. It supports traditional terminal modernization needs and adds a national emphasis on family-friendly amenities and healthier food options in airports. 

As in previous rounds, airports can use ATP funding to upgrade terminals, gates, airport-owned air traffic control towers, access roads, walkways, and multimodal connections. The fiscal year 2026 final year of the five-year program also encourages projects that add conveniences for families, including children’s play areas, exercise spaces, mothers’ rooms or nursing pods, family screening lanes, and sensory rooms for children with special needs. It also supports efforts to expand access to healthy, nutritional food options through partnerships with private-sector vendors. 

Eligible applicants include public agencies, state agencies, private airport owners, tribes or pueblos operating public-use NPIAS airports, and other qualifying entities. The minimum request is $25,000, and applicants may bundle multiple projects to reach that level. 

Grants require local cost-sharing based on airport size. Large and medium hubs generally contribute 20%, while small or non-hub airports may contribute as little as 5%. 

Applications are due by Jan. 15, 2026. 


Photo by Matthew Turner from Pexels

This story is a part of the weekly Government Contracting Pipeline digital news publication. See more of the latest government contracting news here. For more national government news, check Government Market News daily for new stories, insights and profiles from public sector professionals.

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