Airport Infrastructure Grants (AIG): $2.89 Billion in FY2026 Formula Allocations Explained
Airport Infrastructure Grants (AIG) represent one of the most underutilized funding opportunities in airport finance—not because the money is hard to access, but because many airport operators don't fully understand how AIG works or realize they can accumulate and deploy multi-year allocations in a single project.
Created by Section 71001 of the Bipartisan Infrastructure Law in 2021, AIG distributes $15 billion over five years (FY2022-2026) on a formula basis to every airport on the National Plan of Integrated Airport Systems. Unlike the competitive discretionary funding of AIP or ATP, AIG allocations are automatic. Your airport receives its share whether you apply or not—the question is whether you capture it before it expires.
With $2.89 billion available in FY2026 allocations, and a critical September 30, 2026 deadline for FY23 funds, now is the moment to understand AIG, calculate your airport's total allocation, and deploy it strategically.
What Is AIG and Where Did It Come From?
AIG was established in Section 71001 of the Infrastructure Investment and Jobs Act (IIJA), enacted November 15, 2021. The law set aside $15 billion over five fiscal years to complement traditional Airport Improvement Program (AIP) funding.
The policy rationale was simple: AIP, while robust, is demand-driven and tilted toward larger, more sophisticated applicants. Small and medium airports often struggle to navigate competitive discretionary funding or lag in entitlement funding because they have fewer staff and lower project activity. AIG was designed as a guarantee: every airport in the NPIAS receives an allocation, period.
The result is fundamentally different from AIP:
| Feature | AIP | AIG |
|---|---|---|
| Funding type | Mix of entitlement + discretionary | Formula-only (100% entitlement) |
| Eligibility | NPIAS airports | NPIAS airports |
| Application required | Yes (especially for discretionary) | No (automatic) |
| Competitive scoring | Discretionary is competitive | None; formula-based |
| Federal share | 75%-90% depending on hub class | 90% federal, 10% local match |
| Eligible projects | AIP-eligible and PFC-eligible projects | AIP-eligible and PFC-eligible projects |
| Deadline | Varies per fiscal year | Sep 30 end of fiscal year + 2 (FY23 → Sep 30 2026) |
The key innovation: formula-based, no-application-required funding. Your airport gets money. You do not have to compete. You do not have to justify it. You do have to use it before the deadline.
FY2026 AIG Allocations: How Much Is Your Airport Receiving?
For FY2026, the total AIG appropriation is $2.89 billion. This money is divided among all NPIAS airports according to a formula based on:
- Passenger volume (commercial service airports)
- Cargo weight (for airports with significant freight operations)
- General aviation activity (for non-commercial airports)
The formula is complex, but here is the simplified logic:
- Large and medium hub airports (defined by FAA based on annual enplanements): ~50% of total AIG funding
- Small hub and non-hub primary airports: ~35% of total AIG funding
- General aviation airports: ~15% of total AIG funding
To find your specific FY2026 AIG allocation:
- Visit the FAA Office of Airport Planning website (airports.faa.gov) or contact your FAA regional office
- Request your FY2026 AIG formula allocation
- Also request your FY2023, FY2024, and FY2025 allocations (they may not yet be fully obligated)
Typical allocations for reference:
| Airport Class | Typical FY2026 Allocation | Notes |
|---|---|---|
| Large hub (>0.05% of U.S. enplanements) | $5-$15+ million | Major metros (ATL, LAX, ORD, DFW, DEN) get largest shares |
| Medium hub (0.05%-0.25% enplanements) | $2-$8 million | Mid-size metros (Austin, Nashville, Phoenix suburbs) |
| Non-hub primary (10K-50K enplanements) | $500K-$2 million | Regional commercial airports |
| Small general aviation | $50K-$500K | Non-commercial NPIAS airports |
Important note: These are approximations. Your actual allocation depends on passenger and cargo volumes. Contact your FAA regional office for exact figures.
Multi-Year Funding: Accumulating FY23, FY24, FY25, and FY26 Allocations
Here is the most valuable insight about AIG: you can combine allocations from multiple fiscal years to fund a larger project.
Your airport receives:
- FY2023 allocation: Expires September 30, 2026
- FY2024 allocation: Expires September 30, 2027
- FY2025 allocation: Expires September 30, 2028
- FY2026 allocation: Expires September 30, 2029
This creates an opportunity: you can stack FY23 + FY24 + FY25 + FY26 allocations to create a multi-year funding package for a single large project.
Example: Medium Hub with $5M Allocation Per Year
| Fiscal Year | Annual Allocation | Expiration |
|---|---|---|
| FY2023 | $5.0M | Sep 30, 2026 (CRITICAL) |
| FY2024 | $5.0M | Sep 30, 2027 |
| FY2025 | $5.0M | Sep 30, 2028 |
| FY2026 | $5.0M | Sep 30, 2029 |
| Combined Pool | $20.0M | First expiration: Sep 30, 2026 |
This $20 million pool can fund a single taxiway project, a new apron, a terminal renovation (paired with ATP), or other major infrastructure.
Key Strategic Insight: The September 30, 2026 Deadline for FY23 Funds
FY2023 AIG allocations expire on September 30, 2026. This is a hard deadline. Any FY23 funds not obligated by that date are returned to the federal government and lost.
For airports that have not yet awarded FY23 projects or begun construction, this deadline is fast approaching. If your airport received FY23 AIG and has not deployed it, you have less than 9 months (from February 2026) to:
- Identify a project
- Complete preliminary engineering
- Ensure environmental clearance
- Award the contract
- Request the grant agreement from the FAA
- Obligate the funds (sign the grant agreement)
This is tight. Most airports should begin preliminary planning on FY23 projects immediately if they have not already.
Eligible Projects and Uses
AIG funds can be used for any project that is:
- AIP-eligible, OR
- PFC-eligible (but the airport must have PFC authority and allocate it to the project)
This covers a broad range of airport infrastructure:
AIP-Eligible Projects (AIG Can Fund)
- Runways and taxiways
- Aprons and ramps
- Safety areas and EMAS systems
- Navigational aids and approach lighting
- Stormwater and drainage systems
- Fuel piers and hydrant systems
- Ground support equipment parking
- Pavement rehabilitation
- Wildlife hazard mitigation
- Noise mitigation (coupled with airfield work)
- Sustainable infrastructure (EV charging, SAF facilities, electrification)
- Planning and environmental studies
PFC-Eligible Projects (AIG Can Fund If Airport Has PFC)
- Terminal buildings and renovations
- Rental car facilities (airport-owned)
- Parking structures (airport-owned)
- Concession facilities
- Office/administrative buildings
- Landside improvements supporting passenger access
The flexibility is extraordinary. If your airport has a project that is either AIP-eligible or PFC-eligible, AIG can fund it.
Federal Share: 90% Federal, 10% Local
AIG uses a simpler and more generous federal share than AIP:
- Federal share: 90%
- Local match required: 10%
This applies to all NPIAS airports regardless of hub classification. Compare to AIP, which ranges from 75%-90% depending on airport class. AIG is uniformly 90% federal.
Match sources:
- Airport operating revenues
- PFC revenue (if the project is terminal-related)
- State or local government contributions
- In-kind contributions (limited and rare)
For most medium and large airports, 10% match is trivial to cover from retained earnings or operating reserves. This is one reason AIG is so valuable—the match burden is minimal.
How to Apply for AIG Funds
Unlike AIP discretionary funding, AIG requires no formal competitive application. However, you do need to formally request the grant and execute a grant agreement.
Step 1: Confirm Your Allocation
Contact your FAA regional office and request:
- FY2026 AIG allocation amount
- FY2023, FY24, FY25 allocations not yet obligated
- Expiration dates for each fiscal year
Step 2: Identify Your Project
Select a project that qualifies (AIP-eligible or PFC-eligible). Examples:
- Taxiway rehabilitation
- Apron expansion
- Terminal renovation (paired with ATP)
- Cargo facility improvements
- Stormwater system upgrade
Step 3: Develop Project Scope and Budget
- Write a clear project narrative
- Create a detailed cost estimate (preliminary engineering level minimum)
- Identify the funding mix (AIG + local match)
Step 4: Complete Environmental Review
- NEPA clearance is required before grant award
- For most projects: Categorical Exclusion (CATEX) or Environmental Assessment (EA)
- CATEX process: 2-6 months
- EA process: 6-12 months
- Begin environmental review early; do not wait until after award
Step 5: Request the Grant Agreement
Submit to your FAA regional office:
- Project narrative (2-3 pages)
- Cost estimate (detailed line-item)
- Environmental clearance (or status if in progress)
- Local match documentation
- Financial statements (3 years audited)
Step 6: FAA Review and Grant Agreement Execution
- FAA reviews for completeness and eligibility (typically 30-60 days)
- Grant agreement is prepared
- You sign and return the agreement
- FAA signs and returns a copy
- Funds are now obligated (deadline is met)
Step 7: Proceed with Project Design and Construction
Once the grant agreement is signed and funds are obligated, you can proceed with detailed design, bid, and construction. AIG funds are drawn down as work is completed (typical reimbursement model).
Strategic Timing: When to Use AIG
The best use of AIG is in a layered funding strategy:
Scenario 1: AIP Entitlement + AIG + Local Match
- Project: Taxiway Rehabilitation, $15M total
- Funding structure:
- AIP entitlement: $8M (your annual/multi-year entitlement)
- AIG (FY23 + FY24): $5M
- Local match (airport revenues): $2M
- Total: $15M, funded completely from federal and local sources
Scenario 2: Terminal Project with ATP + AIG + PFC
- Project: Terminal Renovation, $100M total
- Funding structure:
- ATP grant (competitive): $40M
- AIG (FY22-26 combined): $25M
- PFC revenue: $25M
- Airport bonds (match): $10M
- Total: $100M
Scenario 3: Large Infrastructure Program, Multi-Year Deployment
- Project: Airport Master Plan Implementation, $200M+ over 10 years
- Funding structure:
- Year 1-3: AIP entitlements + AIG + local match
- Year 4-5: AIP discretionary (competitive) + remaining AIG
- Year 6+: PFC + bonds + new AIP
- Total: Sustained infrastructure investment powered by federal, PFC, and local sources
The key is recognizing AIG's role as a reliable, no-competition funding layer that can close the gap when combined with AIP and PFC.
Common Mistakes and Pitfalls
Mistake 1: Ignoring AIG Because "It's Automatic"
Many airport operators assume AIG is so automatic they don't need to do anything. Wrong. The allocation is automatic, but capturing it before the deadline requires action. If you don't request the grant and obligate funds by the deadline, you lose the money.
Mistake 2: Not Combining Multi-Year Allocations
Small airports especially fail to realize they can stack FY23 + FY24 + FY25 funds to create a $2-3M pool that can fund a meaningful project. Instead, they spend each year's allocation piecemeal on maintenance.
Mistake 3: Missing the September 30, 2026 Deadline for FY23
Many airports will lose FY23 AIG funds because they did not obligate them in time. If your airport received FY23 allocations and has not yet awarded a grant agreement, start immediately on this.
Mistake 4: Not Budgeting for the 10% Local Match
Even though 10% is reasonable, many airport operators forget to include it in their project budget. Then they submit an incomplete application.
Mistake 5: Pursuing AIG Alone When AIP + AIG + PFC Is Better
Some airports use AIG to fund small, tactical projects when a larger, more impactful project could be funded if they combined AIP + AIG + PFC + bonds. Think bigger.
Interaction with AIP, ATP, and PFC
Understanding how AIG relates to other federal funding is critical:
| Program | Competitive? | Formula? | Can Layer with AIG? | Eligible Projects |
|---|---|---|---|---|
| AIP | Yes (discretionary) + No (entitlements) | Yes (entitlements) | YES | AIP projects + planning |
| ATP | Yes | No | YES (partially) | Terminal buildings |
| PFC | Not federal (airport-collected) | No (airport-set) | YES | Terminal + PFC-eligible |
| AIG | No (formula only) | Yes | Baseline for layering | AIP + PFC projects |
Layering strategy:
- Start with entitlements: Use AIP entitlements first (they're yours)
- Add AIG: Stack multi-year AIG allocations
- Pursue competitive: Apply for AIP discretionary or ATP if project justifies it
- Layer PFC: If airport has PFC authority, use it for terminal/concession work
- Fill gaps with bonds or reserves: Close any remaining gap
AIG is the "reliable layer" that requires no competition, no scoring, and minimal match. It should be included in every major project.
Planning for Post-2026 (AIG Ends in FY2026)
Important: AIG is a IIJA program with a sunset date. The final appropriation is FY2026. No AIG funding will be available in FY2027 or beyond unless Congress reauthorizes.
Your runway for AIG is:
- FY2026 allocation, expires Sep 30, 2029
- FY2025 allocation, expires Sep 30, 2028
- FY2024 allocation, expires Sep 30, 2027
- FY2023 allocation, expires Sep 30, 2026 (IMMINENT)
After FY2029, AIG is gone. This makes capturing every dollar essential. Do not defer AIG-funded projects hoping to use funds "later"—deploy them now before the program expires.
Conclusion and Action Checklist
AIG is the most reliable, least competitive airport funding available. With $2.89 billion in FY2026 allocations and cumulative multi-year pools reaching $10-50+ million per airport, AIG represents genuine opportunity for infrastructure investment.
Action checklist for your airport:
- Contact your FAA regional office and confirm FY2026, FY25, FY24, and FY23 AIG allocations
- Flag FY23 funds expiring Sep 30, 2026—prioritize obligating these first
- Identify 1-2 major projects suitable for multi-year AIG funding (FY23+24+25+26)
- Begin environmental review on the primary project now
- Develop a detailed cost estimate and funding mix (AIG + local match)
- Request grant agreements from FAA by August 2026 for FY23 funds
- For FY24-26 funds, maintain a disciplined deployment schedule
- Layer AIG with AIP entitlements, PFC, and ATP to maximize total project funding
The money is sitting there. Will your airport capture it?
This analysis was prepared with AI-assisted research by DWU Consulting. It is provided for informational purposes only and does not constitute legal, financial, or investment advice. All data should be independently verified before use in any official capacity.