It’s time to modernize US airports. With $1.2 trillion allocated through the Infrastructure Investment and Jobs Act (IIJA), there is a unique opportunity to invest in long overdue airport upgrades. Also known as the bipartisan infrastructure bill (BIL), the IIJA includes many programs in its Airport Infrastructure Grant (AIG) initiative, including $15 billion from the IIJA, which are essential for the growth of airports across the country and in the many facets of the American economy they support.
To date, the Federal Aviation Administration (FAA) has awarded $9 billion in AIG funding through hundreds of grants to airports in all 50 states and several US territories. But that still leaves $6 billion unspent. This funding exists only on paper until it is disbursed to airports and does not serve its purpose of improving the nation’s transportation hubs, or the vast ecosystems that support them. As a crucial election approaches in the United States, it’s time for the government to accelerate the process of allocating grants and jump-starting vital infrastructure projects across the country.
Why is IIJA and AIG funding so important?
About $3 billion in AIG funding has been disbursed each year through FY 2022, but much more is needed to unlock the full potential of this initiative. Selso Garcia, solutions engineer – owners of Procore Technologies, emphasized the importance of ensuring that the rest of the grants are fulfilled sooner rather than later: “When the underlying infrastructure projects are completed, the airports can focus on other priorities such as increasing passenger capacity and experience.” says Garcia. “It’s like improving the foundation or structure of your house. When you prioritize these long overdue repairs, you have a sense of ownership pride that makes you want to improve your home even more.”
In other words, AIG’s financing is not just about flashy new terminals or investment in commercial areas, but about laying the foundations for long-term growth and security. Garcia points to Baltimore Washington International Airport as a perfect example. “The great team at BWI understood the limitations of moving passengers through their TSA checkpoints,” he says. “After resolving these issues, the limiting factor to growth became their baggage handling system. They are in the process of upgrading BHS while improving their passenger experience with new restrooms and terminal extensions, and all of this is in addition to the upgrades they have made to their taxiways and airport lighting.By prioritizing grant investments in critical projects, BWI and other airports can move toward improvement wholesale passenger experience, from passenger check-in to wheels.
Funding delays stem from ineffective planning
With elections approaching, timely delivery of IIJA funds is more important than ever. While the BIL passed the Senate on a 69-30 vote with a strong bipartisan majority, leadership changes could hamper the speed of disbursement of the funds.
“Indeed, he notes, airport investments often have a trickle-down effect where some of the expense is recouped through air fares and rents and federal passenger facilities charges (PFCs), all of which can translate into higher ticket prices That said, the AIG funds were approved, and no member of Congress “wants to say ‘no’ to projects that their communities need,” Garcia says.
So what is holding back several billion dollars in funding? As public funding, it’s about transparency and airports being what Garcia calls “good stewards” of the funds provided. Like the BWI project that went from foundational projects to passenger experience enhancements, airports and their project teams must plan thoroughly to support the full scope of their requests for grant
“The last thing you want to do is bring in a program, find out you underestimated the overall budget, and then have to go back to the pit,” says Garcia. He notes that this planning includes having engineering drawings and other documentation to support bidding opportunities for civil and infrastructure companies that will execute the work.” airport, and have planned accordingly to prioritize the right projects.”
Airports and local economies: the ripple effect
AIG funding is for everything from security upgrades to terminal expansions and sustainability projects, but it’s only useful if it gets to the airports. When that funding is delayed, airports face setbacks that can force them to prioritize improvements that are less essential but more visible, such as restroom upgrades or new seating areas. While these upgrades may superficially appease travelers, they sacrifice the supporting infrastructure improvements needed to grow an airport and its surrounding region.
“Airports are economic powerhouses,” Garcia says, citing data from the Airports Council International showing that 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-focused cities. The airport-related economy includes airlines, technology companies that apps to book your flights, the concessions you buy at the airport, the hotels you book, the gifts you buy back home, and all the necessary mechanisms to support travel, such as construction, maintenance staff of the facilities, etc. To make it a reality you need a town or, in this case, a city”.
Regional economic development agencies consider these factors, as well as relocations and business growth, to gain a holistic understanding of how cities and corporations can grow. This means that airports are directly linked to the competitiveness of cities and regions as they try to attract new businesses. With this in mind, releasing the AIG funds now helps improve not only airport facilities, but the economies around them.
Advocating for immediate action
So what can the aviation and construction industries do to ensure these funds are released sooner rather than later? According to Garcia, it’s all about preparation. “Plan and be ready to execute. It would help if you could demonstrate that you are a good steward of the funds provided. Have the engineering in place, understand the total cost of your project, and be ready to move when the funds are awarded” .
Ultimately, the success of the AIG program depends on swift, transparent and accountable execution. Airports must be prepared to receive the funds and use them efficiently, ensuring that every dollar goes towards creating safer, more sustainable and more competitive facilities.
As airport infrastructure funding comes in, your team will need to be ready to run quickly and smoothly. Having the right digital tools is key. Focus groups have shown that the right software solution helps ensure IIJA projects are closely managed, and funds are effectively tracked, so your team comes out on top and achieves similar projects in the future. Learn more about the key to successful IIJA implementation.
