August has been a busy month for the Federal Aviation Administration (FAA), which invested nearly $1.5 billion in new and upgraded airport infrastructure including runways, terminals, towers, and passenger areas.
The agency awarded a new round of Airport Improvement Program (AIP) grants to airports in 42 states and two territories with a total of $615 million going to 238 grants, while earlier this month it awarded $870 million in Airport Infrastructure Grant (AIG) funding.
This marks the sixth AIP award since March and to date, the agency has now allocated about $2.67 billion in AIP grants for fiscal year 2026. Fiscal year 2026 will see the conclusion of the AIG program, which was established in 2022 by the Infrastructure Investment and Jobs Act.
AIP funding supports infrastructure projects involving runways, taxiways, signage, lighting, markings, and other safety-related needs. Over the next two decades, the FAA expects the annual number of passengers flying through the National Airspace System (NAS) to double to two billion, requiring infrastructure upgrades. “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.
Projects include:
• $19.5 million to support the construction of a new airport in Noatak, Alaska
• $8 million to build a new terminal at Lynchburg Regional Airport (KLYH) in Virginia
• $21.5 million for runway rehabilitation at Midland International Air & Space Port (KMAF) in Texas
• $15.3 million for noise mitigation at San Diego International Airport (KSAN)
• $8.3 million for a new contract tower at Gary/Chicago International Airport (KGYY) in Indiana
• $6.3 million for runway extension at Wilmington International Airport (KILM) in North Carolina
