FAA Announces $1.7 Billion in Airport Grants Across 46 States

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HomeAir TravelFAA Announces $1.7 Billion in Airport Grants Across 46 States

The FAA is awarding $1.776 billion, a number echoing America’s founding year, to upgrade airports in 46 states — from new runways at JFK to safety upgrades in Denver — as the nation marks its 250th birthday.

The Federal Aviation Administration awarded $1.776 billion in airport improvement grants to 46 states Thursday, timing the announcement to coincide with America’s 250th anniversary.

The precise figure — $1.776 billion — was a deliberate nod to 1776, the year the Declaration of Independence was signed, according to multiple media reports covering the July 2 announcement. The milestone, known as America’s semiquincentennial, marks 250 years since the document’s signing on July 4, 1776.

The money funds runway rehabilitation, taxiway work, terminal upgrades, safety improvements and lighting projects at airports nationwide, including family-friendly enhancements. It combines Airport Improvement Program (AIP) grants with Airport Infrastructure Grant (AIG) program funds, and as of the announcement, the FAA had awarded more than $1 billion in AIP grants so far in fiscal year 2026. Separately, the FAA earlier this year released the fifth and final installment of the $14.5 billion AIG program, allocating $2.89 billion for FY26. The AIG program was established under the Infrastructure Investment and Jobs Act of 2022.

“The FAA is prioritizing improving our nation’s airports and ensuring we issue grants quickly and efficiently,” FAA Administrator Bryan Bedford said. “This funding does more than just rebuild runways and taxiways, it modernizes the travel experience for American families, ensuring our airports are safe and ready for the future.”

Transportation Secretary Sean P. Duffy tied the funding to the holiday. “What better way to celebrate America than investing in its future,” Duffy said. “We’re ushering in the Golden Age of Transportation and rebuilding our airport infrastructure is critical to making that vision a reality. Under President Trump’s leadership, we are building an aviation system worthy of our country’s incredible history.”

Largest Awards Go To Major Hubs

Denver International Airport received the largest single award, more than $88.8 million for pavement projects. Boise Air Terminal at Gowen Field, a joint civil-military airfield, is getting $74 million for runway rehabilitation, apron expansion and upgraded visual guidance lighting.

Baltimore/Washington International Thurgood Marshall Airport is receiving $62.4 million for runway and runway lighting rehabilitation, while Houston Hobby Airport is getting $62.2 million for runway construction.

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John F. Kennedy International Airport will receive $47.6 million for taxiway construction and to reconstruct an aircraft rescue and firefighting building. Orlando International Airport is getting $36 million for terminal, taxiway and lighting rehabilitation, and Oakland International Airport will receive $28.1 million for taxiway rehabilitation.

AIP funding typically covers 90% of eligible project costs, with state and local sponsors covering the rest. Large and medium primary hub airports receive grants covering 75% of eligible costs, or 80% for noise program work. The program covers more than 3,300 public-use airports nationwide. The FAA has published an interactive data visualization website where the public can track AIP and AIG grant recipients and projects by state, airport or congressional district.

Part Of A Broader Investment Push

Thursday’s announcement builds on a series of federal aviation investments made earlier this year. On May 15, Duffy announced $835.8 million to replace aging air traffic control towers and Terminal Radar Approach Control, or TRACON, facilities — more than $750 million for eight new towers and TRACONs, plus $85.8 million for upgrades to Federal Contract Towers at 41 airports in 24 states.

That investment is separate from the $12.5 billion the Trump administration’s One Big Beautiful Bill allocated toward an air traffic control system overhaul, which covers replacement of radar systems, telecommunications, tower hardware and voice switches at more than 4,600 sites nationwide. The FAA tracks that spending on its “Modern Skies” website. As part of the effort, the agency awarded contracts in January to RTX’s Collins Aerospace and Indra Sistemas to replace more than 600 radars by June 2028; the RTX contract alone is valued at $438 million.

Earlier this year, the FAA also announced $970 million in Airport Terminal Program grants to 133 airports in 45 states for family-friendly projects such as children’s play areas, nursing pods and family security screening lanes, along with $523 million in Airport Infrastructure Grants for 332 airports in 43 states and a separate $653 million in AIP grants for more than 346 airports.

In June, the House Appropriations Committee approved a fiscal 2027 transportation spending bill that includes $4 billion for traditional AIP grants and about $271 million in supplemental AIP grants. The bill also includes what the American Association of Airport Executives described as an increase of nearly $24 million for the FAA Contract Tower Program, a figure that reflects a year-over-year boost rather than the program’s total funding. The bill still requires Senate action before it can be enacted.

The Airport Improvement Program dates to the Airport and Airways Improvement Act of 1982 and traces its roots to the Federal Airport Act of 1946. It is funded almost entirely from the Airport and Airways Trust Fund, which draws revenue from taxes and fees on airline tickets and aviation fuel. The FAA Reauthorization Act of 2024 raised annual AIP funding to $4 billion beginning in fiscal 2025, up from $3.35 billion, which had been in place since fiscal 2012.

Key Takeaways

  • The FAA announced $1.776 billion in airport improvement grants for 46 states on July 2, timed to America’s 250th anniversary.
  • The largest awards went to Denver ($88.8 million), Boise ($74 million), Baltimore-Washington ($62.4 million) and Houston Hobby ($62.2 million).
  • Funded projects include runway rehabilitation, taxiway construction, safety upgrades and family-friendly terminal improvements.
  • The grants are part of a broader federal aviation investment push that also includes a $12.5 billion air traffic control overhaul.
  • The House Appropriations Committee has approved $4 billion in AIP grants for fiscal 2027, pending Senate action.

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