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) | ~$14.5 billion | Formula (allocated to NPIAS airports) | ~$2.89 billion/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:
| Fiscal Year | Allocation Released | Amount |
|---|---|---|
| FY2022 | December 16, 2021 | ~$2.89 billion |
| FY2023 | November 29, 2022 | ~$2.89 billion |
| FY2024 | November 16, 2023 | ~$2.89 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 90% for airports that are not large- or medium-hub airports. Large- and medium-hub airports receive a federal share of 80% for terminal development projects and 90% for most other eligible projects, consistent with AIP federal share rules.
Expiration Deadlines
AIG allocations expire four years after the fiscal year in which they become available. This creates a series of deadlines:
| Allocation Year | Expiration |
|---|---|
| FY2022 | End of FY2025 (September 30, 2025) — expired |
| FY2023 | September 30, 2026 |
| FY2024 | September 30, 2027 |
| FY2025 | September 30, 2028 |
| FY2026 | September 30, 2029 |
The FY2023 deadline of September 30, 2026 is the next critical date. Any airport that has not obligated its FY2023 AIG allocation under a grant agreement by that date will lose those funds.
Strategic Considerations
AIG funds can be combined across fiscal years. An airport may pool its FY2023 through FY2026 allocations to fund a single project, provided the earlier-year allocations are obligated before their respective expiration dates.
AIG can also be layered with other funding sources:
- AIP entitlements and discretionary grants
- ATP competitive grants (for terminal projects)
- PFC revenues (pay-as-you-go or leveraged)
- General airport revenue bonds
- Local match from airport operating funds or reserves
Airport Terminal Program (ATP)
Program Structure
ATP is a competitive discretionary grant program providing approximately $1 billion annually for five years (FY2022–FY2026) to fund terminal development, on-airport rail access, and airport-owned air traffic control tower (ATCT) projects. ATP was created by Section 71002 of the BIL.
FY2026 is the final year of ATP funding. The application deadline for FY2026 ATP was January 15, 2026, with awards expected by October 30, 2026.
Allocation Limits by Hub Size
Congress established annual funding distribution limits by hub category:
| Hub Size | Maximum Share of Annual ATP Funding |
|---|---|
| Large hub | Not more than 55% |
| Medium hub | Not more than 15% |
| Small hub | Not more than 20% |
| Nonhub and nonprimary | Not less than 10% |
Federal Cost Share
| Hub Size | Federal Share (ATP) | Local Match Required |
|---|---|---|
| Large and medium hub | 80% | 20% |
| Small hub, nonhub, nonprimary | 95% | 5% |
Eligible Projects
ATP-eligible projects are defined in the IIJA and FAA guidance:
- Airport terminal development — as defined in 49 U.S.C. § 47102(28): development of an airport passenger terminal building, including terminal gates, access roads serving exclusively airport traffic, and walkways leading directly to or from a terminal building.
- On-airport rail access projects — consistent with PFC Update 75-21 (86 FR 48793, August 31, 2021).
- Airport-owned ATCT projects — relocating, reconstructing, repairing, or improving an airport-owned air traffic control tower.
Selection Criteria
FAA evaluates ATP applications on the following criteria:
- Increase capacity and passenger access
- Replace aging infrastructure
- Achieve ADA compliance and expand accessibility
- Improve airport access for historically disadvantaged populations
- Improve energy efficiency (including LEED accreditation)
- Improve airfield safety through terminal relocation
- Encourage actual and potential competition among air carriers
For the FY2026 cycle, FAA also added a priority for projects enhancing the travel experience for families, including mother's rooms, family screening lanes, family restrooms, and children's play areas.
Awards to Date
Through FY2025, the FAA has announced over $3.8 billion in ATP grants funding more than 440 projects. The following table summarizes ATP announced amounts by fiscal year:
| Fiscal Year | Announced Amount | Approximate Number of Airports |
|---|---|---|
| FY2022 | ~$1 billion | 85 airports |
| FY2023 | ~$1 billion | 99 airports |
| FY2024 | ~$970 million | 125 airports in 46 states and territories |
| FY2025 | ~$970 million | 125+ airports |
| FY2026 | Up to $1 billion (pending) | Applications closed January 15, 2026 |
Individual grant amounts range from under $300,000 for small general aviation terminal projects to over $60 million for projects at large hubs. Denver International Airport's baggage handling system replacement received approximately $109 million in cumulative ATP funding across FY2022–FY2024. Other awards include Chicago O'Hare (Terminal 3 rehabilitation, FY2023), Orlando International (Terminal C, FY2022), and Fort Lauderdale-Hollywood International (terminal connector, FY2024).
Relationship Between ATP and AIG
ATP and AIG serve different but complementary purposes:
| Feature | AIG | ATP |
|---|---|---|
| Distribution | Formula (automatic allocation) | Competitive (application required) |
| Eligible projects | AIP-eligible and PFC-eligible projects (broad) | Terminal development, on-airport rail, airport-owned ATCT (narrower) |
| Federal share | 80%–90% depending on hub and project type | 80% (large/medium hub); 95% (small/nonhub/nonprimary) |
| Annual amount | ~$2.89 billion | ~$1 billion |
| Availability | 4 years from FY of allocation | 5 years from FY of appropriation |
| Competition | None (formula) | Competitive scoring and national review |
Airports may combine AIG and ATP funding on the same project. For example, a terminal renovation could receive an ATP competitive grant for the terminal building itself and use AIG allocations for associated taxiway or apron work that is AIP-eligible but outside ATP scope.
Post-BIL Considerations
FY2026 is the final year of BIL airport grant funding for both AIG and ATP. Unless Congress reauthorizes or extends these programs, the flow of BIL-specific formula and competitive grant funding will conclude with the obligation of FY2026 allocations.
For airports planning multi-year capital improvement programs, the following timing considerations apply:
- FY2023 AIG allocations must be obligated by September 30, 2026. Airports with unobligated FY2023 funds may wish to identify shovel-ready projects and work with their FAA regional or district office to submit grant applications before this deadline.
- FY2026 ATP awards are expected by October 30, 2026. Projects that cannot satisfy statutory and administrative requirements for a grant award by that date risk not receiving funding.
- Post-BIL funding levels are uncertain. The traditional Airport Improvement Program (AIP) continues to be funded through annual appropriations — approximately $3.3 to $4.0 billion per year in recent fiscal years. Whether Congress enacts a successor to BIL's supplemental airport grant programs is a legislative question that remains open as of March 2026.
Infrastructure Investment and Jobs Act (IIJA), Section 71001 (AIG) and Section 71002 (ATP). FAA, BIL Frequently Asked Questions, November 2023. FAA, FY 2026 ATP Notice of Funding Opportunity, December 8, 2025. FAA IIJA Airport Infrastructure Grant Funding Amounts page (accessed February 2026). FAA ATP Grant Status List (updated February 2025). American Association of Airport Executives (AAAE), FY2025 and FY2026 Guidance. FAA IIJA Resources
Changelog
2026-03-06 — Initial publication.Disclaimer: This article is AI-assisted and prepared for educational and informational purposes only. It does not constitute legal, financial, or investment advice. Financial data reflects publicly available sources as of March 2026. Always consult qualified professionals before making decisions based on this content.
AI Disclosure: This document was prepared with AI-assisted research by DWU Consulting. It is provided for informational purposes only and does not constitute legal, financial, or investment advice. All data should be independently verified before use in any official capacity.