Airport Alert: DOT Announces Funding for Air Traffic Control Facility Upgrades
May 15, 2026
The Department of Transportation today released approximately $836 million to replace and repair aging air traffic control facilities. Of that amount, $750 million will be used to replace eight air traffic control towers including two in the FAA Contract Tower (FCT) Program and two that are co-located with Terminal Radar Approach Controls (TRACONs). Another $85.8 million is designated for other contract tower airports to upgrade sponsor-owned towers.
Funding for Air Traffic Control Towers and TRACONs
Today’s announcement indicates that the FAA will be investing $750 million to replace eight air traffic towers and TRACONs with “brand-new, state-of-the-art facilities.” A DOT press release indicates that those air traffic control facilities slated for replacement are located at the following airports:
- Charleston International (SC)
- Grand Forks International (ND)
- Greenville-Spartanburg International (SC)
- Lawton-Fort Sill Regional (OK)
- Pocatello Regional (ID)
- Sacramento International (CA)
- San Jose Mineta International (CA)
- Miami Executive (FL)
The Lawton-Fort Sill Regional Airport and Pocatello Regional Airport participate in the FCT program and have FAA-owned air traffic control towers. AAAE and USCTA convinced Congress to include $200 million in the Infrastructure Investment and Jobs Act (IIJA) to upgrade FAA-owned towers at contract tower airports.
As a reminder, the IIJA included a total of $25 billion for aviation over five years beginning in Fiscal Year 2022. Of that amount, $15 billion is for airport infrastructure grants, $5 billion for airport terminal projects, and $5 billion for air traffic facilities.
Funding for Other Contract Tower Airports
DOT and FAA also announced that 41 contract tower airports in 24 states will receive a total of $85.8 million to upgrade sponsor-owned towers. This marks the fifth round of IIJA funding for the FCT Competitive Grant program and covers FY26.
The competitive grants that the agency unveiled today ranged from less than $52,000 to $10 million to rehabilitate towers. The list of FCT airports that will receive FY26 funding may be viewed here.
The IIJA included $100 million for contract tower upgrades -- $20 million annually beginning in FY22. However, that amount grew to $85.6 million in FY26 because the bill requires the first $100 million in annual unobligated Airport Infrastructure Grant (AIG) funds to go to contract tower upgrades.
Airport Terminal Program
The FAA has yet to announce projects that will be selected for funding under the FY26 Airport Terminal Program (ATP). We will share that information as soon as it becomes available.
Related Information
