Now is the Moment to Upgrade and Modernize Airport Facilities.

With $1.2 trillion earmarked through the Infrastructure Investment and Jobs Act (IIJA), the opportunity to modernize U.S. airports has arrived. Also known as the Bipartisan Infrastructure Bill (BIL), the IIJA includes various programs under its Airport Infrastructure Grants (AIG) initiative, which allocates $15 billion essential for airport growth and the broader U.S. economy. To date, the Federal Aviation Administration (FAA) has distributed $9 billion in AIG funding through hundreds of grants to airports across all 50 states and several U.S. territories. However, this leaves $6 billion still unallocated, which remains dormant until disbursed, failing to improve the nation’s transportation hubs and their supporting ecosystems. With an important U.S. election approaching, it’s crucial for the government to expedite the grant allocation process and initiate vital infrastructure projects nationwide.

The Significance of IIJA and AIG Funding

Since fiscal year 2022, approximately $3 billion in AIG funding has been released each year, but much more is necessary to unlock the full potential of this initiative. Selso Garcia, Solutions Engineer – Owners for Procore Technologies, emphasized the urgency of fulfilling the remaining grants: “When underlying infrastructure projects are complete, airports can focus on other priorities like increasing capacity and passenger experience,” Garcia states. “It’s like improving the foundation or structure of your home. When you prioritize those long-overdue repairs, you have pride of ownership that makes you want to enhance more of your home.”

The AIG funding is not merely about constructing new terminals or upgrading retail areas; it lays the groundwork for long-term growth and safety. Garcia cites Baltimore Washington International Airport as a case in point: “The great team at BWI understood the limitations of moving passengers through their TSA checkpoints,” he explains. “After they resolved those issues, the limiting factor for growth became their baggage handling system. They’re in the process of updating the BHS while also improving their passenger experience with new restrooms and terminal expansions, and all of this is in addition to updates they’ve made to their taxiways and airport lighting.” By prioritizing grant investments in foundational projects first, BWI and similar airports can enhance the overall passenger experience from check-in to takeoff.

Challenges in Funding Disbursement

With a critical election on the horizon, timely release of IIJA funds is more vital than ever. Although the BIL passed the Senate with a strong bipartisan majority of 69-30, potential leadership changes may slow down fund disbursement.

“Airport investments often have a trickle-down effect where some of the expenses can be recouped through airline fees and federally capped passenger facility charges (PFCs)—all of which can translate to higher ticket prices,” Garcia notes. However, with AIG funds already approved, “no Congress member wants to say ‘no’ to projects their communities need.”

So what’s causing the delay in billions of dollars in funding? As public funds, transparency and ensuring that airports are “good stewards” of the provided funds is crucial. Like the BWI project, which successfully transitioned from foundational improvements to enhancing passenger experiences, airports and their project teams must thoroughly plan to support their grant requests.

“The last thing you want to do is introduce a program, find out you underestimated the overall budget, and then have to go back to the well,” Garcia warns. He emphasizes the need for proper engineering drawings and documentation to facilitate bidding opportunities for civil and infrastructure firms executing the work. “Federal organizations will want to allocate money to those who understand how to manage an airport and have strategically prioritized the right projects.”

The Economic Ripple Effect of Airports

AIG funding encompasses everything from safety enhancements to terminal expansions and sustainability initiatives, but it’s only beneficial if it reaches the airports. Delays can lead airports to prioritize less critical but more visible enhancements, such as restroom renovations or new lounges, ultimately sacrificing necessary infrastructure improvements vital for growth.

“Airports are economic powerhouses,” Garcia asserts, referencing Airports Council International data that shows airports support 11.5 million jobs and generate $1.7 trillion in annual economic output. “It’s critical to have infrastructure that can support a mobile workforce and global capabilities, such as flights to other business-centric cities. The airport-related economy encompasses airlines, technology firms creating flight booking apps, airport concessions, hotels, and all the support services like construction and facility maintenance. It takes a village to make it happen, or in this case, a city.”

Regional economic development agencies consider these factors, along with relocations and business growth, to develop a comprehensive understanding of how cities and corporations can thrive. Thus, releasing AIG funds now enhances not only airport facilities but also the economies surrounding them.

Calling for Immediate Action

What can the aviation and construction industries do to ensure timely release of these funds? According to Garcia, it’s all about preparation. “Plan and be ready to execute. Show you’re a good steward of the funds provided. Have the engineering in place, understand the full cost of your project, and be ready to move when the funds are awarded.”

Ultimately, the success of the AIG program hinges on swift, transparent, and responsible execution. Airports must be prepared to receive and efficiently use the funds, ensuring every dollar contributes to creating safer, more sustainable, and competitive facilities.

As airport infrastructure funding becomes available, teams need to be ready for prompt and seamless execution. Employing the right digital tools is crucial; focus groups have shown that effective software solutions ensure IIJA projects are closely managed and funds tracked efficiently, setting your team up for future success.