The airport infrastructure in the US is classified as poor in the ASCE report 2025; the sector needs improved finances and funding. Although the airport infrastructure has improved from past years due to the IIJA and federal airport grants. If you are wondering about the airport infrastructure financing in the USA, you can check every detail here.
Airport Infrastructure Financing USA
The airport is not only an important infrastructure for travelling, but also drives the nation’s economy as it creates jobs and enhances connectivity. According to reports, the airports support around 12 million jobs, generate annual economic revenue of $1.8 trillion, hence it’s important to meet the airport infrastructure needs.
The passenger rate is also expected to grow in the future, that is, 1.4 billion by 2040 and 1 billion in 2025, so to accommodate the airport’s services and provide the best transportation experience to the passengers, the infrastructure needs to be improved.
The federal government has supported the funding of airport infrastructure through the IIJA 2021 Act and provided $15 billion till 2026 to improve the sector. At the beginning of this year, the Federal Aviation Administration confirmed $332 million across 32 states to modernize the airports, and to date, around $12 billion has been invested since 2022.
The bipartisan infrastructure laws support the airport infrastructure and address the requirements, backlog, and increasing demand of the infrastructure. According to reports, the IIJA funding includes $500 million for non-primary airports, whereas $2.39 billion is for primary airports.
How does Airport Infrastructure get funding in the USA?
The airport infrastructure in the USA mainly gets the investment through federal grants; however, apart from this, the infrastructure also gets its funding, such as:
- Municipal bonds: Municipal organizations help in improving the airport infrastructure through municipal bonds or the funds they receive from federal grants or programs.
- Airport-generated Revenue: Airports use the revenue generated from fees, rent, passenger facility charges, and others to improve the infrastructure and invest in projects that can enhance the aviation sector.
- Public-Private Partnerships: The public-private partnership method is getting popular in the infrastructure sector to bridge the investment gap as both private and public stakeholders share the risk, revenue, and investment for the project, which mitigates the risks and attracts investment.
- State and Local grants: Apart from the federal grants, the local and state governments also use the taxes collected to strengthen the transportation sector, as connectivity is highly important for every region. Many states have their funds for aviation, road, and other transportation infrastructure to improve the quality of life.
Airport Infrastructure Funding Grants USA
The US Airport infrastructure has many federal grants and programs administered by the Federal Aviation Administration and the Department of Transportation. Here you can check the Airport infrastructure programs and grants facilitating the funding:
- New Airport Terminal Program:
- The New Airport Terminal Program provides $5 billion fund for the terminal development through competitive grants under the FAA.
- The project cost under the program depends on the type of airports, such as 80% for large and medium airports, 9% for small, non-primary, and non-hub airports.
- Airport Infrastructure Grant:
- The $15 billion funds for five years are granted under this federal grant to modernize the US airports and improve the current airports.
- The funds are used for runways, safety systems, taxiways, climate resilience projects, terminal upgrades, and others.
- Airport Improvement Program:
- The AIP grants strengthen the airport infrastructure each year based on the passenger volume under the FAA administration.
- The administration uses the federal formula to distribute the funds for the airport infrastructure.
- FAA Facilities & Equipment Funding:
- The FAA also offers the Facilities and equipment funds to upgrade the facilities and engineering services.
- The funds are around $5 billion, which includes FAA-owned ATC facilities, contract towers, and others related to navigation facilities.
What is the investment gap for the USA Airport infrastructure?
Airport infrastructure in the US was graded D+ in the 2025 report card, which indicates the poor condition and risks. The ASCE says the air passenger traffic would increase 58% in the next 15 years, which requires robust airport infrastructure to meet the demands.
The investment gap in the airport infrastructure can be caused by the following reasons that everybody should be aware of to find the best solutions:
- Old infrastructure: Most of the US airports have old infrastructure that lacks modern facilities, safety, capacity, and passenger experience, and thus, many of them need the funds to enhance the passenger experience.
- Rising costs: With the technological advancements, the costs of new technologies, construction, and other infrastructure needs are getting costlier, which is affecting the investment.
- Funding shortfalls: The report says the US airports’ infrastructure development will need $174 billion in the next five years, and given the current investment levels, it’s looking like the sector is in a state of lack of funds.
The US Airports’ infrastructure needs a long-term investment plan, and as the IIJA funds will end in 2026, this raises concerns for the future of the infrastructure needs and demands.
