FLYING Magazine
The FAA has poured nearly $1.5 billion into new and upgraded airport runways, terminals, towers, passenger areas, and other infrastructure in the month of August alone.
The agency on Thursday announced a fresh round of Airport Improvement Program (AIP) grants for airports in 42 U.S. states and two territories. A total of about $615 million spread across 238 grants will support runway and taxiway infrastructure improvements, airfield safety upgrades, and “family-friendly” terminal additions, the FAA said.
Earlier this month, the agency awarded roughly $870 million in Airport Infrastructure Grant (AIG) funding.
“We’re prioritizing these grants in a time when Americans are traveling more than ever, ensuring we fulfill our promise to transform the passenger travel experience,” FAA Administrator Bryan Bedford said in a statement.
On August 10, Bedford said the FAA projects the annual number of passengers flying through the National Airspace System (NAS) will double from 1 billion to 2 billion over the next two decades.
AIP funding is intended to support infrastructure projects involving runways, taxiways, signage, lighting, markings, and other safety-related needs.
The program was established by the Airport and Airway Improvement Act of 1982. The money is drawn primarily from the Airport and Airway Trust Fund’s Grants-in-Aid for Airports account, which is funded by taxes on fuel, tickets, domestic flight segments, international passenger arrivals and departures, and other user fees. In recent years, the FAA’s General Fund has supplemented funding.
About $19.5 million of the AIP grants announced Thursday will support the construction of a new airport in Noatak, Alaska. The FAA and Alaska Department of Transportation and Public Facilities have been planning a relocation of Noatak Airport (PAWN), with construction scheduled to begin in 2027.
Another $8 million will go toward building a new terminal at Lynchburg Regional Airport (KLYH) in Virginia. The city of Lynchburg this week said the funds will be used for expanding the airport’s existing passenger terminal, improving passenger flow, and increasing capacity to accommodate future growth. The project includes plans for a wider, automated TSA exit lane and several sustainability and accessibility improvements.
Other airports receiving a chunk of the grant money include:
- Midland International Air & Space Port (KMAF) in Texas—$21.5 million for runway rehabilitation
- San Diego International Airport (KSAN)—$15.3 million for noise mitigation
- Gary/Chicago International Airport (KGYY) in Indiana—$8.3 million for a new contract tower
- Wilmington International Airport (KILM) in North Carolina—$6.3 million for runway extension
- Sacramento International Airport (KSMF) in California—$2.4 million for new passenger boarding bridges
With Thursday’s AIP award, the FAA’s sixth since March, the agency has now allocated about $2.67 billion in AIP grants for fiscal year 2026 (FY26).
In June, the House Appropriations Committee approved a FY27 transportation spending bill that calls for $4 billion in traditional AIP grants, plus another $271 million for supplemental AIP grants and $303 million for the federal contract tower (FCT) program.
The FAA also supports these projects through the AIG program, which this year was allocated a fifth and final $2.89 billion installment. FY26 marks the conclusion of the AIG program, which was established in 2022 by the Infrastructure Investment and Jobs Act.
In addition to the nearly $1.5 billion the FAA has spent in August, the agency in July allocated $1.776 billion in grants—an homage to America’s 250th birthday.
Earlier in 2026, the Transportation Department (DOT) invested $800 million to replace air traffic control (ATC) towers and terminal radar approach control (TRACON) facilities.
Congress last year gave the DOT $12.5 billion to support its Brand New Air Traffic Control System (BNATCS) modernization effort, progress on which can be tracked here.