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BIL Airport Infrastructure Grants (AIG) and Airport Terminal Program (ATP)

BIL Airport Infrastructure Grants (AIG) and Airport Terminal Program (ATP) Bipartisan Infrastructure Law Grant Funding for Airport Capital Improvement Programs An essential reference for airport and a

Published: March 6, 2026
Last updated March 5, 2026. Prepared by DWU AI · Reviewed by alternative AI · Human review in progress.
Summary: BIL authorized $25 billion for airport infrastructure over FY2022–FY2026. Two programs directly serve airport sponsors: AIG ($15 billion formula-based) and ATP ($5 billion competitive, approximately $1 billion annually). AIG allocations expire four years from the fiscal year of appropriation; FY2023 allocations expire September 30, 2027, the next statutory expiration deadline. ATP is competitive and runs through FY2026, with awards expected by October 30, 2026. Both programs can be combined with AIP entitlements, PFC revenues, and local debt. As of February 2026, FAA has announced over $3.8 billion in ATP awards across more than 440 projects. Historical AIP funding from FY2019–2025 averaged approximately $3.3–$4.0 billion annually. For multi-year capital programs, airport finance teams may consider prioritizing shovel-ready projects among unobligated FY2023–FY2025 AIG allocations before the September 30, 2027 expiration for FY2023 funds.

Overview

The Infrastructure Investment and Jobs Act of 2021 (IIJA), commonly known as the Bipartisan Infrastructure Law (BIL), was signed into law on November 15, 2021 (Pub. L. 117-58). BIL authorized $25 billion over five fiscal years (FY2022–FY2026) for airport infrastructure, allocated across three programs:

Program Total Authorization Distribution Method Annual Amount
Airport Infrastructure Grants (AIG) $15 billion Formula (allocated to NPIAS airports) Variable per year
Airport Terminal Program (ATP) $5 billion Competitive (discretionary) ~$1 billion/year
FAA Air Traffic Facilities $5 billion FAA Air Traffic Organization ~$1 billion/year

AIG and ATP are the two programs directly available to airport sponsors. The FAA Air Traffic Facilities program funds improvements to FAA-owned facilities and is administered by the Air Traffic Organization (ATO), not by airport sponsors.

Airport Infrastructure Grants (AIG)

How AIG Works

AIG is a formula-based grant program. Every airport in the National Plan of Integrated Airport Systems (NPIAS) receives an annual allocation calculated based on passenger volume, cargo weight, and general aviation activity. Unlike AIP discretionary grants or ATP, AIG allocations do not require a competitive application â€" the funds are assigned to each airport automatically.

The FAA has released five annual installments of AIG allocations. FY2023 enplaned passenger growth was 10.0%, compared to the five-year average of 3.2% for FY2019–2023 (Bureau of Transportation Statistics, accessed February 2026):

Fiscal Year Allocation Released Amount
FY2022 December 16, 2021 $1.04 billion
FY2023 November 29, 2022 $2.32 billion
FY2024 November 16, 2023 $2.64 billion
FY2025 November 19, 2024 ~$2.89 billion
FY2026 October 27, 2025 ~$2.89 billion

The fifth and final installment (~$2.89 billion for FY2026) was released on October 27, 2025.

Eligible Uses

AIG funds can be used for any project eligible under the Airport Improvement Program (AIP) or the Passenger Facility Charge (PFC) program. This includes:

  • Runway, taxiway, and apron construction and rehabilitation
  • Terminal development
  • Airport planning and environmental studies
  • Safety and security improvements
  • Noise compatibility projects
  • Sustainability projects
  • Airport-transit connections and roadway projects

Federal Cost Share

AIG grants carry a federal share of 95% for small hub, nonhub, and nonprimary airports. Large- and medium-hub airports receive a federal share of 80% for terminal development projects and 90% for most other eligible projects, as established under IIJA Section 71001.

Expiration Deadlines

AIG allocations expire four years after the fiscal year in which they are appropriated. This creates a series of deadlines:

Allocation Year Expiration
FY2022 End of FY2026 (September 30, 2026) — expires September 30, 2026
FY2023 September 30, 2027
FY2024 September 30, 2028
FY2025 September 30, 2029
FY2026 September 30, 2030

The FY2023 deadline of September 30, 2027 is the next statutory expiration date. Any airport that has not obligated its FY2023 AIG allocation under a grant agreement by that date will lose those funds.

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