Regulatory Alert: FAA Releases FY26 Allocations for Airport Infrastructure Grant Program
October 27, 2025
Today, the Federal Aviation Administration (FAA) released $2.89 billion in fiscal year 2026 (FY26) allocations under the Airport Infrastructure Grant (AIG) Program, which provides $15 billion for airport infrastructure upgrades over five years and was created by Congress through the Infrastructure Investment and Jobs Act (IIJA). The FY26 allocations represent the amount that each airport is entitled to use for any project that is eligible under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Airports may also combine their FY23, FY24, FY25, and FY26 allocations to fund a single project.
You can view the FY26 AIG allocations here – a spreadsheet detailing the amounts allocated to each airport. Airports are encouraged to work with their local FAA offices to identify eligible projects and apply to use their allocated AIG funds. We understand that airports can begin applying to use their FY26 allocations as of today.
IIJA Background. As airports are aware, the IIJA provided a historic investment of $20 billion in new federal spending for airport infrastructure over a five-year period. As a reminder, FAA has developed three different programs to administer the funds:
For FY23 AIG allocations, which were the second year’s allocations under the program, an airport must ensure its share of allocations is under grant by the end of FY26, or September 30, 2026. To ensure the September 30, 2026, deadline is met, FAA has established the following deadlines:
Today, the Federal Aviation Administration (FAA) released $2.89 billion in fiscal year 2026 (FY26) allocations under the Airport Infrastructure Grant (AIG) Program, which provides $15 billion for airport infrastructure upgrades over five years and was created by Congress through the Infrastructure Investment and Jobs Act (IIJA). The FY26 allocations represent the amount that each airport is entitled to use for any project that is eligible under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Airports may also combine their FY23, FY24, FY25, and FY26 allocations to fund a single project.
You can view the FY26 AIG allocations here – a spreadsheet detailing the amounts allocated to each airport. Airports are encouraged to work with their local FAA offices to identify eligible projects and apply to use their allocated AIG funds. We understand that airports can begin applying to use their FY26 allocations as of today.
IIJA Background. As airports are aware, the IIJA provided a historic investment of $20 billion in new federal spending for airport infrastructure over a five-year period. As a reminder, FAA has developed three different programs to administer the funds:
- Airport Infrastructure Grant (AIG) Program: Under the AIG Program, FAA has made $14.45 billion in formula grants (about $2.89 billion per year) available for airports to fund any eligible project under the AIP or PFC Program. Of the $11.6 billion allocated during the first four fiscal years (FY22-FY25), approximately $7.9 billion has been committed to specific projects. The $2.89 billion in formula allocations for FY26 represents the final year of AIG funding.
- Airport Terminal Program (ATP): Under the ATP, FAA is making $5 billion available in competitive grants ($1 billion per year) to fund projects for terminal development, on-airport rail access, and relocating, repairing, or improving an airport-owned air traffic control (ATC) facility. FAA is expected to release a notice of funding opportunity (NOFO) for the final year of ATP funding (FY26) once the federal government shutdown ends.
- FAA Contract Tower (FCT) Competitive Grant Program: Under the FCT Competitive Grant Program, FAA is making $100 million in discretionary grants ($20 million per year) available to fund projects that repair, improve, or replace an airport-owned FCT ATC tower. FAA is expected to release a NOFO for FY26 FCT competitive grants once the federal government shutdown ends. At the end of FY25, FAA indicated that approximately $64 million in unobligated FY22 AIG funds remained available. Those funds will be made available through the FY26 FCT Competitive Grant Program.
For FY23 AIG allocations, which were the second year’s allocations under the program, an airport must ensure its share of allocations is under grant by the end of FY26, or September 30, 2026. To ensure the September 30, 2026, deadline is met, FAA has established the following deadlines:
- May 1, 2026: Deadline to notify FAA of the airport’s intent to use expiring FY23 AIG funds.
- June 30, 2026: Airports must submit an application, based on bids, to the FAA for AIG projects that would use expiring FY23 AIG funds.
- September 30, 2026: FAA and airports must ensure any expiring FY23 AIG funds are obligated, or under grant, for a specific project.
If your airport has any remaining FY23 AIG allocations, these deadlines are important to keep in mind. Also, it is worth noting that these deadlines will continue to apply in future years. For example, airports will have to notify FAA of their intent to use expiring FY24 AIG allocations by May 1, 2027, and submit applications, based on bids, by June 30, 2027.
