Recent DOT Announcements for Airport Improvements: What’s Happening and What’s Next

The U.S. aviation sector is undergoing a transformative phase, driven by significant investments from the U.S. Department of Transportation (DOT) and its Federal Aviation Administration (FAA). In 2025, the DOT has announced substantial funding for airport improvements, aimed at modernizing infrastructure, enhancing safety, and improving the passenger experience. These initiatives, largely funded through the Bipartisan Infrastructure Law (BIL), are set to reshape airports nationwide, ensuring they meet the demands of growing air travel while prioritizing sustainability and accessibility. This article explores the latest DOT announcements, the specific improvements underway, and what the aviation industry can expect moving forward.

Overview of DOT’s Airport Improvement Initiatives

The DOT, through the FAA, administers several grant programs to support airport development, with the Airport Improvement Program (AIP) and Airport Terminal Program (ATP) being the most prominent. These programs fund critical upgrades to runways, terminals, taxiways, and air traffic control systems. In 2025, the FAA has allocated billions of dollars to address aging infrastructure, improve operational efficiency, and align with national priorities such as safety, equity, and environmental sustainability.

Key Funding Announcements for 2025

1. Airport Infrastructure Grants (AIG): On January 7, 2025, the FAA announced $332 million in AIG funding for 171 grants across 32 states. This is part of the $25 billion allocated under the BIL for airport improvements over five years. Projects include terminal expansions, baggage system upgrades, runway safety enhancements, and noise compatibility initiatives. Notable examples include:
   • $84.3 million to Phoenix Sky Harbor International Airport for a new 2,100-foot taxiway and bridge to accommodate more aircraft operations.
   • $18.8 million to Sitka Rocky Gutierrez Airport in Alaska for terminal expansion and snow removal equipment storage rehabilitation.
   • $6.7 million to Tallahassee International Airport for new taxiways and lighting to meet FAA safety standards.
2. Airport Terminal Program (ATP): The FAA has made approximately $1 billion available for the FY 2025 ATP, focusing on modernizing terminals and airport-owned traffic control towers. In October 2024, the FAA awarded $970 million to 125 airports across 46 states, funding projects like new baggage systems, larger security checkpoints, and increased gate capacity. Examples include:
   • $33.2 million to Austin-Bergstrom International Airport for a new Midfield Terminal B with 20 additional gates.
   • $15 million to Salt Lake City International Airport for Concourse B expansion, adding 16 new gates to boost competition.
   • $9.7 million to Nashville International Airport for terminal access road improvements, including road widening and bridge construction.
3. AIP Supplemental Discretionary Grants: In 2023, the FAA announced $269 million in supplemental discretionary grants, available through FY 2025, for projects emphasizing airfield operational resiliency, sustainable aviation fuel infrastructure, and energy efficiency. These grants prioritize medium and large hub airports ($235.7 million) and smaller airports ($33 million).

Focus Areas for Airport Improvements

The DOT’s recent announcements emphasize several key priorities:

• Safety and Efficiency: Projects like runway and taxiway reconstructions, new navigational aids, and modernized air traffic control systems aim to enhance safety. For instance, the $26.6 million grant to Indianapolis International Airport funds runway reconstruction to improve safety standards.
• Accessibility: Grants support compliance with the Americans with Disabilities Act (ADA) and initiatives like the #AccessibleAirTravel campaign, launched to mark the 37th anniversary of the Air Carrier Access Act. Projects include modernized restrooms, lactation rooms, and service animal relief areas, as seen at Corpus Christi International Airport.
• Sustainability: The FAA prioritizes projects that reduce greenhouse gas emissions, promote energy efficiency, and incorporate sustainable materials. Examples include energy-efficient terminal designs at Phoenix-Mesa Gateway Airport and sustainable aviation fuel-compatible infrastructure.
• Equity and Economic Impact: The DOT aligns with Executive Orders to promote equitable access and support underserved communities. Grants encourage the use of Disadvantaged Business Enterprises and create high-quality jobs with fair labor standards.

What’s Happening Now

Airports across the U.S. are actively implementing these funded projects. In Hawaii, the Daniel K. Inouye International Airport is undergoing a Runway and Taxiway Shoulders Rehabilitation Project, with Runway 4R-22L reopening in January 2025 and further work scheduled through October 2025. In Illinois, the Department of Transportation’s FY 2025 Annual Proposed Airport Improvement Program prioritizes safety, preservation, and design standards to maximize economic development.

Nationwide, airports are upgrading terminals to handle increased passenger demand. For example, Cleveland Hopkins International Airport in Ohio is launching a $780 million terminal expansion, while Orlando International Airport is investing $10 million in an Automated Parking Guidance System to enhance parking efficiency. These projects reflect a broader trend of modernizing infrastructure to support growing air travel, with the FAA reporting record-breaking passenger numbers in 2024.

What’s Next for Airport Improvements

Looking ahead, the FAA has outlined several key deadlines and plans for FY 2025:

• Application Deadlines: Airport sponsors must notify the FAA by April 1, 2025, of their intent to use FY 2025 AIP entitlement funds, with final grant applications due by April 28, 2025. Discretionary funding applications are accepted on a rolling basis, with a final deadline of June 16, 2025.
• Continued Funding: The ATP will provide approximately $1 billion annually through FY 2026, subject to funding availability. The AIP’s funding has increased to $4 billion per year through FY 2028, following the 2024 FAA Reauthorization Act.
• Air Traffic Control Modernization: On May 8, 2025, Transportation Secretary Sean P. Duffy announced a multibillion-dollar plan to overhaul the nation’s air traffic control system within four years. This includes replacing outdated technologies (e.g., copper wires and floppy disks) with modern radar sensors, flight management systems, and new control towers, prompted by recent incidents like the midair collision near Ronald Reagan Washington National Airport.

Implications for the Aviation Industry

These investments are poised to transform the U.S. aviation landscape. Modernized terminals and runways will enhance passenger experiences, reduce delays, and improve safety. Increased gate capacity, as seen in projects at Austin-Bergstrom and Salt Lake City, will foster airline competition, potentially lowering airfares. Sustainability initiatives align with global trends toward greener aviation, while accessibility improvements ensure inclusivity for all travelers.

For aviation professionals and businesses, these projects create opportunities for collaboration with Disadvantaged Business Enterprises and participation in high-quality job markets. Airports are encouraged to act swiftly to secure funding, as deadlines are tight and competition for discretionary grants is high.

Conclusion

The DOT’s 2025 airport improvement initiatives mark a pivotal moment for U.S. aviation. With billions in funding from the Bipartisan Infrastructure Law, airports are undergoing critical upgrades to meet the demands of modern air travel. From safety enhancements to sustainable designs, these projects promise a safer, more efficient, and inclusive aviation system. As airports continue to submit applications and implement projects, the industry can look forward to a future of modernized infrastructure and enhanced passenger experiences. Stay tuned to aviatorpro.com for the latest updates on aviation developments and opportunities.