Airports win nearly $1 billion in federal grants for terminal upgrades

Airports in nearly every state will receive $970 million in federal grants for terminal makeovers, the White House announced Thursday.

The funding, which goes to 114 airports in 44 states and three territories, marks the third round of Airport Terminal Program grants under the Infrastructure Investment and Jobs Act, which allocated a total of $5 billion in annual $1 billion increments from 2022 through 2026. The $2 billion in previous funding has launched a series of terminal projects across the country, officials said.

"Under this administration, we are doing more to improve the travel experience than ever before, from expanding consumer protections to modernizing the physical infrastructure," said Transportation Secretary Pete Buttigieg in a statement. "These investments we're announcing today, made possible by President Biden's historic infrastructure package, will make it easier for passengers to get to and through airports, create jobs, and increase safety for all."

Chicago O'Hare International Airport

U.S. airports collectively face $151 billion of capital needs over the next five years, according to the Airports Council International's 2023 U.S. Airport Infrastructure Needs Report. Air travel officially reached pre-pandemic levels in mid-2023, according to Fitch Ratings, which has a stable outlook on the sector. The recovery has prompted airports to advance capital plans with heavy price tags, which will be financed with a mix of federal grants and debt, Fitch said.

According to Fitch, the top five big spenders, given capital program estimates for the next 10 years, are: Los Angeles International Airport, $12.1 billion; Chicago O'Hare International Airport, $12 billion; San Francisco International Airport, $11 billion, Hartsfield–Jackson Atlanta International Airport, $10.6 billion and Dallas/Fort Worth International Airport, $9.2 billion.

Meanwhile, among the 114 airports that won federal grants, the largest included: $50 million to the Fort Lauderdale‐Hollywood International Airport for a terminal connector project; $40 million to Chicago O'Hare International Airport; $35 million to the Washington Dulles International Airport for a 14-terminal project with connections to transit; and $36 million to the Phoenix Sky Harbor International Airport for its utility upgrade.

The FAA received more than 600 applications for grants asking for a total of $14 billion, officials said.