Regulatory Alert: FAA Releases $739.9 Million in FY25 AIP Grants for Projects at Over 253 Airports
August 20, 2025
The Federal Aviation Administration (FAA) released a list of over $739 million in infrastructure grant awards as part of the fiscal year 2025 (FY25) Airport Improvement Program (AIP), including $450.8 million in entitlement grants and $289.1 million in discretionary grants. The grants awarded today will fund a variety of projects at over 253 airports, including construction and improvement of airport facilities, repairs to runways, taxiways, and aprons, and purchasing equipment needed to operate and maintain airports.
The AIP grants released today were made available by the $4.0 billion in “regular” AIP funding that Congress provided in March as part of a continuing resolution (CR) for FY25. Today’s announcement brings the total amount of FY25 AIP grants awarded to approximately $2.2 billion after FAA has awarded about $1.4 billion since late June. FAA will need to announce another approximately $1.7 billion over the next month.
You can review the full list of grant awards released today here and each of the previous FAA announcements here.
Infrastructure Investment and Jobs Act (IIJA) Program Updates. We wanted to provide several other updates on the three airport-specific grant programs under the IIJA:
The Federal Aviation Administration (FAA) released a list of over $739 million in infrastructure grant awards as part of the fiscal year 2025 (FY25) Airport Improvement Program (AIP), including $450.8 million in entitlement grants and $289.1 million in discretionary grants. The grants awarded today will fund a variety of projects at over 253 airports, including construction and improvement of airport facilities, repairs to runways, taxiways, and aprons, and purchasing equipment needed to operate and maintain airports.
The AIP grants released today were made available by the $4.0 billion in “regular” AIP funding that Congress provided in March as part of a continuing resolution (CR) for FY25. Today’s announcement brings the total amount of FY25 AIP grants awarded to approximately $2.2 billion after FAA has awarded about $1.4 billion since late June. FAA will need to announce another approximately $1.7 billion over the next month.
You can review the full list of grant awards released today here and each of the previous FAA announcements here.
Infrastructure Investment and Jobs Act (IIJA) Program Updates. We wanted to provide several other updates on the three airport-specific grant programs under the IIJA:
- Airport Infrastructure Grant (AIG) Program: Today, FAA released another $1.1 billion of infrastructure development grants from the AIG Program. Of the $11.6 billion that has been made available through the first four years of the program, about $7.7 billion has been committed to specific projects. FAA is expected to release approximately $2.9 billion in FY26 AIG allocations, the final year of additional funding, in November.
- Airport Terminal Program (ATP): FAA has already awarded about $3.8 billion in grants to airport sponsors in the first four years of the ATP. We continue to hear from the FAA that the notice of funding opportunity (NOFO) for about $1 billion in FY26 ATP funding, the final year of additional funding, is close to being released. We are keeping a close eye on the NOFO and will update members as soon as it is published.
- FAA Contract Tower (FCT) Competitive Grant Program: We continue to hear the NOFO for the FY26 FCT Competitive Grant Program is close to being released as well. As a reminder, up to $100 million of any unobligated (unused) FY22 AIG allocations remaining after September 30, 2025, will be reallocated to the FY26 FCT Competitive Grant Program. Thus, we are expecting up to $120 million in funding to be made available for the program in FY26 ($20 million in funding for FY26, plus up to an additional $100 million from unobligated FY22 AIG allocations), which should be reflected in the NOFO released soon.
