The time to modernize U.S. airports is now. With $1.2 trillion allocated through the Infrastructure Investment and Jobs Act (IIJA), there’s a unique opportunity to invest in long-overdue airport upgrades. Otherwise known as the Bipartisan Infrastructure Bill (BIL), the IIJA includes many programs in its Airport Infrastructure Grants (AIG) initiative—comprising $15 billion of the IIJA—which are essential for growth at airports across the country and in the many facets of the U.S. economy that they support.
So far, the Federal Aviation Administration (FAA) has awarded $9 billion in AIG funding through hundreds of grants to airports in all 50 states and multiple U.S. territories. But that still leaves $6 billion unspent. This funding only exists on paper until it’s disbursed to airports and isn’t serving its purpose of improving the nation’s transportation hubs – or the extended ecosystems that support them. As a crucial U.S. election approaches, it’s time for the government to speed up the grant allocation process and kickstart vital infrastructure projects nationwide.
Why is IIJA and AIG funding so important?
About $3 billion in AIG funding has been disbursed each year since fiscal year 2022, but much more is needed to unlock the full potential of this initiative. Selso Garcia, Solutions Engineer – Owners for Procore Technologies, highlighted the importance of ensuring the rest of the grants are fulfilled sooner rather than later: “When underlying infrastructure projects are complete, airports can focus on other priorities like increasing capacity and passenger experience,” Garcia says. “It’s like improving the foundation or structure of your home. When you prioritize those long-overdue repairs, you have pride of ownership that makes you want to enhance more of your home.”
In other words, the AIG funding is not just about flashy new terminals or investments in retail areas – it’s about laying the groundwork for long-term growth and safety. Garcia points to Baltimore Washington International Airport as a perfect example. “The great team at BWI understood the limitations of moving passengers through their TSA checkpoints,” he says. “After they resolved those issues, the limiting factor for growth became their baggage handling system. They’re in the process of updating the BHS while also improving their passenger experience with new restrooms and terminal expansions, and all of this is in addition to updates they’ve made to their taxiways and airport lighting.” By putting grant investments toward the foundational projects first, BWI and other airports can move toward wholesale improvement in passenger experience from passenger check-in to wheels up.
Funding delays stem from ineffective planning
With a looming election, the timely release of IIJA funds is more important than ever. While the BIL passed the Senate by a vote of 69-30 with a strong bipartisan majority, leadership changes could hinder the speed of funds disbursement.
“Indeed, he notes that airport investments often have a trickle-down effect in which some of the expense is recouped through airline fees and rents and federally capped passenger facility charges (PFCs) – all of which can translate to higher ticket prices. Having said that, the AIG funds received approval, and no Congress member “wants to say ‘no’ to projects their communities need,” Garcia says.
So what’s holding up several billion dollars in funding? As public funding, it’s all about transparency and airports being what Garcia calls “good stewards” of the funds provided. Like the BWI project that rolled from foundational projects up to passenger experience improvements, airports and their project teams must plan thoroughly to support the full scope of their grant requests.
“The last thing you want to do is introduce a program, find out you underestimated the overall budget, and then have to go back to the well” Garcia says. He notes that this planning includes having engineering drawings and other documentation in place to support bidding opportunities by civil and infrastructure firms that will execute the work.“ Federal organizations and their leadership will want to give money to people that understand how we need to conduct the airport, and have planned accordingly to prioritize the right projects.”
Airports and local economies: The ripple effect
AIG funding is for everything from safety enhancements to terminal expansions and sustainability projects, but it’s only helpful if it reaches the airports. When that funding is delayed, airports face setbacks that can force them to prioritize enhancements that are less essential but more visible, such as restroom updates or new lounge areas. While these updates may appease travelers superficially, they sacrifice the supportive infrastructure improvements needed to grow an airport and its surrounding region.
“Airports are economic powerhouses,” Garcia says, citing Airports Council International data that shows airports support 11.5 million jobs and generate $1.7 trillion in annual economic output. “It’s critical to have infrastructure that can support a mobile workforce and global capabilities, such as flights to other business-centric cities. The airport-related economy includes the airlines, the technology companies that make the apps to book your flights, the concessions you buy from at the airport, the hotels you book, the gifts you buy on your way back home, and all the mechanisms needed to support travel, like construction, facility maintenance personnel, etc. It takes a village to make it happen, or in this case, a city.”
Regional economic development agencies look at these factors, as well as relocations and business growth, to gain a holistic understanding of how cities and corporations can grow. This means airports are directly tied to the competitiveness of cities and regions as they try to attract new businesses. With that in mind, releasing the AIG funds now helps improve not just airport facilities but the economies that surround them.
Advocating for immediate action
So, what can the aviation and construction industries do to ensure these funds are released sooner rather than later? According to Garcia, it’s all about preparation. “Plan and be ready to execute. It would help if you showed you’re a good steward of the funds provided. Have the engineering in place, understand the full cost of your project, and be ready to move when the funds are awarded.”
In the end, the success of the AIG program depends on quick, transparent and responsible execution. Airports must be prepared to receive the funds and use them efficiently, ensuring that every dollar goes toward creating safer, more sustainable and more competitive facilities.
As airport infrastructure funding comes through, your team will need to be ready to execute quickly and seamlessly. Having the right digital tools in place is key. Focus groups have shown that the right software solution helps ensure IIJA projects are closely managed – and the funds tracked effectively – so your team comes out on top and gets similar projects in the future. Learn more about the key to a successful implementation of IIJA.
