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FAA Distributes $615 Million in Airport Improvement Grants

The FAA announced $615M in AIP grants across 238 projects in 42 states, funding runways, terminals, and safety upgrades.

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The Federal Aviation Administration (FAA) announced a $615 million infrastructure investment on August 20, 2026, distributing 238 grants across 42 states and two territories to modernize aging runways, taxiways, and terminal facilities.

The funding is issued through the Airport Improvement Program (AIP) and arrives during a period of high passenger demand. U.S. Transportation Secretary Sean P. Duffy and FAA Administrator Bryan Bedford detailed the allocations in a press release, emphasizing safety upgrades and passenger experience enhancements.

Major infrastructure and safety allocations

The latest round of AIP funding targets both major commercial hubs and regional airfields. The largest single grant highlighted in the announcement directs $21.5 million to Midland International Air & Space Port (MAF) in Texas for runway rehabilitation. In Alaska, $19.5 million will fund the construction of a new airport in Noatak, addressing critical remote access needs.

Other notable allocations include $15.3 million for noise mitigation efforts at San Diego International Airport (SAN) and $8.3 million to construct a new contract air traffic control tower at Gary/Chicago International Airport (GYY) in Indiana.

Terminal enhancements and capacity growth

Beyond airfield surfaces, the grants support terminal expansions and passenger facility upgrades. Lynchburg Regional Airport (LYH) in Virginia will receive $8 million for a new terminal building. Wilmington International Airport (ILM) in North Carolina secured $6.3 million for a runway extension project to accommodate increased traffic.

At Sacramento International Airport (SMF) in California, a $2.4 million grant will fund the installation of new passenger boarding bridges.

In the official announcement, Secretary Duffy stated that upgrading airport infrastructure is part of the administration’s work to usher in a new era of transportation.

“American families deserve state-of-the-art runways, taxiways and infrastructure that will make their travel experience safer, smoother, and more efficient,” Duffy said.

FAA Administrator Bedford added that the agency is prioritizing these grants while Americans are traveling at record levels, noting the investment ensures the FAA fulfills its promise to transform the passenger travel experience.

AirPro News analysis

This $615 million allocation represents a routine but substantial deployment of Airport Improvement Program capital. We note that the timing aligns with a broader push by the U.S. Department of Transportation (USDOT) to highlight infrastructure spending in August 2026, following a $35.1 million maritime grant announcement earlier in the month. The inclusion of both heavy airfield maintenance, such as the Midland runway rehabilitation, and passenger-facing terminal upgrades reflects the dual mandate of current FAA funding mechanisms to balance operational safety with passenger throughput demands.

Sources: Federal Aviation Administration, Federal Aviation Administration (ATP Context), Maritime Administration

Photo Credit: Midland TX

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OHare Concourse E Groundbreaking Accelerated Under ORDNext Plan

Chicago advances Concourse E construction to 2026 under the $8.8B ORDNext program, adding gates before Terminal 2 demolition.

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The City of Chicago will accelerate the construction of a new concourse at O’Hare International Airport (ORD), breaking ground on the first phase of Concourse E in late 2026 to ensure sufficient gate capacity ahead of a massive terminal replacement project. The revised construction sequence prioritizes new gates to maintain operational stability during the demolition of the existing Terminal 2.

In a press release issued on August 20, 2026, the Chicago Department of Aviation (CDA) and Mayor Brandon Johnson outlined the updated timeline for the $8.8 billion ORDNext modernization program. By fast-tracking Concourse E, the airport aims to support increased flight volumes for hub carriers United Airlines (UA) and American Airlines (AA) before the centerpiece O’Hare Global Terminal (OGT) begins construction in 2029.

Revised timeline and gate capacity

The ORDNext program is designed to increase overall gate capacity at the airport by 14 percent. The newly announced sequence focuses heavily on bringing satellite concourses online before disrupting central terminal operations.

Construction on The New Concourse D began in August 2025. The CDA finalized a Guaranteed Maximum Price for the facility in June 2026, coming in $21 million below the approved budget. Concourse D is scheduled for completion in late 2028 and will provide 19 new gates.

The New Concourse E will be built in two phases. The first phase will break ground in late 2026 and open in 2030, adding 14 gates. The second phase will add 10 more gates and is scheduled for completion in 2034. Once fully built, Concourse E will span approximately 460,000 square feet and house 24 gates.

“Chicago is not waiting to build the O’Hare our residents, businesses and visitors will need for the next generation. By moving forward with New Concourse E this year, we are adding gates where they are needed, keeping this historic modernization moving, and creating a clear path to deliver the O’Hare Global Terminal, the centerpiece of ORDNext, as quickly as possible.” — Brandon Johnson, Mayor of Chicago

Paving the way for the Global Terminal

The decision to advance Concourse E alters a previous 2024 compromise plan. According to reporting by the Daily Herald, the prior sequence would have seen Concourse D built first, followed by a phased construction of the global terminal, and finally Concourse E. The updated strategy ensures that Concourse E provides necessary relief capacity before Terminal 2 is demolished.

Construction on the O’Hare Global Terminal is now scheduled to begin in 2029 and conclude in 2033. DePaul University aviation expert Joseph Schwieterman told the Daily Herald that the revised plan averts what would have been a highly disruptive situation during the construction of the new global terminal.

The resequencing also offers logistical advantages. CDA Communications Director Kevin Bargnes noted to the Daily Herald that the new timeline allows crews to build the tunnel connecting Concourses D and E more efficiently, resulting in overall cost savings for the project.

CDA Commissioner Mike McMurray stated in the press release that starting Concourse E now allows the airport to stay ahead of growth rather than reacting to it. He noted the initial 14 gates will provide the flexibility required to maintain safe and efficient airline operations during the most complex phases of the ORDNext program.

Airline support and operational impact

The capacity additions come as O’Hare experiences high summer demand. The CDA reported the airport is handling nearly 100 more daily departures this summer compared to July 2025, driven by operational expansions from both United and American.

Both hub carriers expressed support for the revised construction sequence. Omar Idris, Vice President of ORD for United Airlines, stated the airline supports a plan that brings new capacity online sooner and maintains efficient operations throughout the construction period.

Amanda Zhang, Vice President of Corporate Real Estate for American Airlines, called the O’Hare Global Terminal a landmark project that will redefine the customer experience. She noted that advancing the terminal efficiently and responsibly remains a shared priority for the airline and the city.

AirPro News analysis

We view the revised ORDNext sequencing as a pragmatic pivot by the Chicago Department of Aviation. Attempting to construct the O’Hare Global Terminal without first securing the relief valve of Concourse E would have likely constrained hub operations for United and American, leading to congestion and potential schedule reductions. By prioritizing gate capacity through the satellite concourses, the city mitigates the operational risk inherent in demolishing a central facility like Terminal 2 at one of the world’s busiest airports. The $21 million budget underrun on Concourse D also suggests the CDA is currently managing the massive capital program with effective financial oversight, a critical factor as the project moves toward the more complex global terminal phase.

Sources: Chicago Department of Aviation

Photo Credit: Chicago Department of Aviation

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MWAA Approves $15.5B Budget for Washington Dulles Overhaul

MWAA approved a $15.5B budget amendment to modernize Dulles Airport, retiring mobile lounges via a $3.75B AeroTrain extension by 2034.

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The Metropolitan Washington Airports Authority (MWAA) Board of Directors approved a $15.5 billion budget amendment on August 19, 2026, to fund a massive revitalization of Washington Dulles International Airport (IAD). The authorization brings the total capital budget for the multi-decade overhaul to $19.9 billion, paving the way for the retirement of the airport’s aging mobile lounges.

The vote advances a sweeping infrastructure plan initially outlined by President Donald Trump on July 29, 2026. Financed primarily through municipal bonds rather than federal funds, the project encompasses five core construction packages designed to modernize the Virginia hub. The initiative will add or renovate 5 million square feet of airport space, fundamentally altering passenger flow and terminal operations.

Phasing out the mobile lounges

A central component of the revitalization is the replacement of the mobile lounges, which have transported passengers between the main terminal and concourses for decades. According to reporting by The Points Guy, MWAA Vice President for Engineering Keith Autry confirmed that the automated AeroTrain system will be extended to fully replace the legacy vehicles.

Construction on the new tunnels is scheduled to begin in early 2029. The $3.75 billion AeroTrain extension project is expected to reach completion in 2034, at which point the mobile lounges will be officially retired from standard passenger service.

Terminal and concourse expansion

The largest single financial allocation within the approved budget is directed toward the airport’s primary passenger facilities. Patch reported that $6.2 billion is earmarked for the renovation and expansion of the main terminal and Concourse A/B.

Reconstruction work on the main terminal is slated to commence in late 2027. Following the completion of the AeroTrain tunnels, the authority plans to begin construction on additional new concourses in 2039. MWAA President and CEO Jack Potter emphasized the long-term operational benefits during the August 19 meeting.

“We look forward to the construction. We look forward to continued growth at Dulles Airport, and we think we have a very bright future,” Potter said, as reported by The Washington Post.

AirPro News analysis

We view the MWAA board’s reliance on municipal bonds rather than direct federal funding as a standard but substantial financial commitment for a project of this scale. Retiring the mobile lounges at IAD is a long-overdue operational necessity. While the vehicles are a recognizable piece of the airport’s history, they introduce ground-level congestion and extend minimum connection times for hub carrier United Airlines (UA). Transitioning to a fully automated underground train system will align Dulles with modern international hub standards and improve ramp safety by reducing vehicular traffic around taxiing aircraft.

Sources: Metropolitan Washington Airports Authority

Photo Credit: Metropolitan Washington Airports Authority

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Parsons Wins McGhee Tyson Airport Terminal Expansion Contract

Parsons Corporation awarded 5-year contract for McGhee Tyson Airport’s $700M-$800M terminal expansion in Knoxville, Tennessee.

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Parsons Corporation has secured a five-year contract to provide program and construction management (PM/CM) services for a major terminal expansion at McGhee Tyson Airport (TYS) in Knoxville, Tennessee. The agreement, announced on August 18, 2026, positions the infrastructure firm to oversee a comprehensive modernization effort at a facility currently operating well beyond its original design capacity.

In a press release issued on August 18, 2026, Parsons confirmed its selection by the Metropolitan Knoxville Airport Authority (MKAA) to support the airport’s Terminal Area Development Plan. The contract ensures compliance with Federal Aviation Administration (FAA) funding requirements while managing the complex logistics of expanding an active commercial terminal.

Managing unprecedented passenger growth

McGhee Tyson Airport has experienced a rapid surge in traveler volume over recent years. The facility served 3.3 million passengers annually and ranked as the fastest-growing airport in the United States in 2024. This throughput significantly exceeds the terminal’s original design capacity, which was built to accommodate 2.6 million annual passengers.

Airport officials project that nearly 4 million travelers will pass through the facility in 2026. To address this capacity shortfall and prepare for future demand, the MKAA initiated a capital improvement campaign with an estimated value between $700 million and $800 million.

The Parsons contract will directly support this broader initiative. The firm will provide oversight to ensure the terminal development program enhances daily operations and improves the passenger experience without disrupting current flight schedules or compromising safety standards.

Expanding aviation infrastructure portfolios

Parsons brings extensive experience to the Knoxville project, having worked on aviation infrastructure at more than 450 airports across 40 countries. The company’s portfolio includes supporting the FAA’s next-generation modernization program and executing specialized projects such as fire-fighting foam transitions.

Martin Boson, President of Engineered Systems for Parsons, stated that the award expands the company’s position in the aviation market by adding a new strategic airport customer to its roster.

“Parsons’ proven expertise spans the entirety of our business, from delivering complex infrastructure at major airports throughout North America and the Middle East, supporting the Federal Aviation Administration’s next-generation modernization program, and executing fire-fighting foam transitions,” Boson said.

The modernization effort at TYS is supported in part by federal grants. On June 9, 2026, the airport received $10 million from the Infrastructure Investment and Jobs Act Airport Terminal Program. This specific funding allocation is designated for the expansion of the airport’s security checkpoints, a critical component of the overall terminal upgrade.

AirPro News analysis

We view the selection of a major global contractor like Parsons as an indicator of the scale and complexity of the McGhee Tyson Airport expansion. When regional airports experience rapid passenger growth that pushes them millions of passengers beyond their design capacity, the transition from a regional facility to a mid-major hub requires rigorous program management to prevent operational bottlenecks. By securing a firm with extensive FAA compliance experience, the MKAA is likely positioning itself to efficiently absorb and deploy further federal infrastructure grants over the five-year contract period.

Sources: Parsons Corporation

Photo Credit: McGhee Tyson Airport

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