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United States Department of Transportation United States Department of Transportation

Q-03. Are the IIJA funds split into different funding buckets?

Yes. Five billion dollars of Facilities and Equipment is being administered by ATO for improvements to FAA-owned facilities. ARP will administer approximately $20 billion of financial assistance funds to airport sponsors. This includes $15 billion of Airport Infrastructure Grants (AIG) and $5 billion for the Airport Terminal Program (ATP). The $20 billion is allocated over five years ($4 billion annually). Of the $20 billion made available for financial assistance, FAA will receive up to $118 million annually for administration of IIJA funds and the Office of Inspector General (OIG) will receive $2 million annually for oversight of IIJA funds.

(1)    AIG includes formula allocations (AIG Allocated) and competitive (FAA Contract Tower and AIG Funding Reallocation) funds of up to $14.45 billion. 

a)    AIG formula allocations-

  • Primary Airports share not more than $2.48 billion annually based on enplanement and cargo volume. Nonprimary Airports share not more than $500 million annually, based on airport classification in the National Plan of Integrated Airport System (NPIAS) and the aggregated NPIAS eligible development cost for each classification.


b)    FAA Contract Tower-

  • AIG provides $20 million annually in competitive grants (FAA Contract Tower) for sponsor-owned contract towers participating in the FAA Contract Tower Program and the Contract Tower Cost Share Program (FCT). These funds are available to: construct, repair, improve, rehabilitate, modernize, replace, or relocate an airport control tower; acquire and install air traffic control, communications, and related equipment in an airport control tower; and construct a remote tower certified by the FAA, including acquisition and installation of air traffic control, communications, or related equipment (to date, there is no FAA-certified remote tower technology). Starting in FY 2026, FAA will award FCT competitive grants for up to $100M per year. The FCT competitive grants will consist of AIG funds that remain unobligated at the end fourth fiscal year (FY) of their availability. For more information about unobligated AIG funding, please see Q-9 and F-3 below.


c)    AIG Funding Reallocation (AFR) Program-

  • In FY 2026, a new competitive grant program will utilize unobligated AIG funds in the final year of availability. Per the statutory text of IIJA, eligible projects include those that reduce airport emissions, reduce noise impact to the surrounding community, reduce dependence on the electrical grid, or provide general benefits to the surrounding community.  For more information about AIG funds that remain unobligated at the end fourth FY of their availability, please see Q-9 and F-3 below.


(2)    ATP provides approximately $4.85 billion ($970 million annually) in grants, including multi-modal terminal development and on-airport rail access projects.

  • These funds can also be used for projects for relocating, reconstructing, repairing, or improving a sponsor-owned air traffic control tower (ATCT) regardless of staffing.