Airport Terminal Program (ATP): Maximizing Your Share of $5 Billion in IIJA Funding

The Airport Terminal Program (ATP) represents one of the largest federal commitments to airport terminal infrastructure in U.S. history. Created by the Bipartisan Infrastructure Law in 2021 and funded through FY2026, ATP distributes $1 billion annually ($5 billion total over five years) to help airport sponsors modernize, expand, and improve their terminal buildings. For airports pursuing major terminal renovations or expansions, ATP is often the linchpin of the funding structure—capturing what AIP cannot fund.

But ATP is a finite opportunity with a hard deadline. FY2026 is the final year of ATP appropriations. After October 31, 2026, no new grants will be awarded. For airport operators planning terminal work, this window is closing. This guide explains how ATP works, how to strengthen your application, and how to act strategically before the program expires.

Program Creation and Structure

ATP was established by Section 50104 of the Bipartisan Infrastructure Law (IIJA), signed into law in November 2021. The program was designed to address a critical gap in federal airport funding: traditional AIP does not fund terminal buildings, and many airports lacked resources to self-fund major terminal work after the COVID-19 revenue collapse.

ATP provides grants for eligible terminal development and certain airport-owned facilities. Unlike AIP, which is both entitlement-based and discretionary, ATP is entirely discretionary and competitive. Your airport does not receive an ATP allocation simply by being on the NPIAS. Instead, you must submit a competitive application, and the FAA will score and rank all applicants nationally.

FY2026 Funding and the Oct 30, 2026 Deadline

For FY2026, the final year of the program:

Available funding: $1 billion (same as FY2022-FY2025)
Application deadline: Typically March 31, 2026 (confirm with FAA Grants Management System)
Award notifications: Expected by June/July 2026
Fund obligation deadline: October 31, 2026
This is the final year: No ATP funding will be available in FY2027 or beyond

The October 31 deadline is particularly important. Unlike AIP entitlements, which can roll forward indefinitely, IIJA discretionary funding expires. Any ATP grant awarded in FY2026 that is not obligated (i.e., the FAA has not signed the grant agreement and made funds available) by October 31, 2026, will be recaptured by the U.S. Treasury. This puts pressure on awarded applicants to finalize project scope, environmental documentation, and local match commitments quickly.

Airport sponsors should be aware: ATP awards will be made in June/July 2026, but you will have only 3-4 months to sign your grant agreement and obligate funds. Any delay in environmental review, final design, or match documentation will risk losing your award.

Eligible Project Types

ATP funds three broad categories of eligible projects:

1. Terminal Development

Terminal development includes most improvements to passenger-facing airport facilities:

New terminal buildings or terminal expansions
Terminal renovations and modernizations (interior and exterior)
Baggage handling systems
Passenger processing improvements (TSA screening areas, gates, holdrooms)
Curbside improvements (passenger drop-off and pickup)
Ground-level circulation and landside roadways
Parking facilities directly serving the terminal
Terminal utilities and mechanical systems
Sustainable features (LEED improvements, electric vehicle charging, water efficiency)
Food and beverage facilities
Retail and concession spaces

2. Airport-Owned Air Traffic Control Towers (ATCT)

ATP also funds airport-owned air traffic control towers, which is unusual and noteworthy:

Construction of new ATCT facilities
Renovation of existing tower buildings
Equipment and technology upgrades within airport-owned towers
Taxiway or ramp improvements directly supporting tower operations

Many smaller airports own and operate their own towers (as opposed to FAA-operated towers at larger hubs). ATP provides a funding pathway for these facilities—one of the few federal programs that do.

3. Ineligible Project Components

ATP will not fund:

Airfield improvements (runways, taxiways, aprons)—use AIP instead
Ground support equipment hangars or maintenance facilities
Non-airport-owned facilities (rental car offices, hotels, off-airport parking)
Noise mitigation (use AIP instead)
Planning studies without construction (use AIP instead)

Key distinction: If your project touches the terminal building or facilities within the terminal, ATP is likely your vehicle. If it's airfield-only, use AIP.

Federal Share and Cost Participation

ATP uses a simpler federal share structure than AIP:

Standard federal share: Up to 80% federal, requiring 20% local match
Can exceed 80%: The FAA may approve a higher federal share (up to 100%) for rural airports, small airports, or projects with strong equity/workforce development components, but this is not automatic.

Unlike AIP, ATP does not tier by hub classification. The federal share is the same whether you are a small general aviation airport or a major hub—though large hubs rarely qualify for ATP funding because they have sufficient PFC and bonding capacity.

Match sources:

Airport revenues (operating funds or retained earnings)
PFC (Passenger Facility Charge) revenue
State or local grants
Private investment (if project involves development rights or leased space)
FAA/DOT discretionary grant matching (sometimes available)

Blending PFC and airport revenues is common. Many large-hub terminals are funded via ATP grant + PFC revenue + airport bonds + local government contribution.

Competitive Scoring and Evaluation Criteria

ATP is entirely competitive. The FAA scores all applications against the following criteria:

1. Project Justification and Need (Weight: ~25%)

What problem does the project solve? Does the terminal face capacity constraints, safety issues, or obsolescence?
Quantified metrics: Current/projected passenger volumes, enplanement growth, existing facility deficiencies
Economic impact: How will the terminal improvement drive economic development, business expansion, or regional connectivity?
Market demand: Is there airline interest in expanded service? Are carriers ready to commit?

How to strengthen: Conduct a detailed facility condition assessment. Quantify deficiencies (gate capacity, baggage system throughput, security checkpoint delays). Provide letters of interest or commitment from major carriers showing demand for expanded service.

2. Safety and Accessibility (Weight: ~15%)

Safety improvements: Does the project address security vulnerabilities, emergency evacuation issues, or structural safety?
Accessibility: How does the project improve accessibility for passengers with disabilities?
Resilience: Does the project address climate risks (flooding, extreme heat) or other hazards?

How to strengthen: Conduct a security assessment and accessibility audit. Show how the project addresses findings. Include resilience planning, especially if the airport faces flood or storm risk.

3. Sustainability and Climate Resilience (Weight: ~20%)

Energy efficiency: Does the terminal incorporate LEED features, renewable energy, or efficiency upgrades?
Water conservation: Low-flow fixtures, stormwater management, water recycling?
Emissions reduction: Electric vehicle charging, ground support equipment electrification, sustainable aviation fuel infrastructure?
Climate adaptation: Flood mitigation, cooling, power resilience?

How to strengthen: Target LEED Gold or higher certification. Incorporate EV charging infrastructure. Include electrification of ground support equipment where possible. Design for climate hazards specific to your region (e.g., coastal flooding, extreme heat, snow/ice).

4. Equity and Workforce Development (Weight: ~15%)

Equity: Does the project serve underserved populations or address transportation equity?
Jobs: Will the project create construction jobs or permanent employment?
Community engagement: Have you engaged local stakeholders, including low-income communities?
Contracting: Commitments to minority-owned, women-owned, or disadvantaged business enterprise (MBE/WBE/DBE) contractors?

How to strengthen: Develop a community engagement plan with documented stakeholder input. Commit to MBE/WBE/DBE contracting targets (15-25% is typical). Quantify job creation during construction and operations. Show how the project improves air service access for lower-income travelers.

5. Financial Feasibility and Readiness (Weight: ~25%)

Local match: Is the match committed and available? Can you prove it?
Project readiness: How far along is design? Environmental review?
Timeline: Is the project realistic? Can you execute within FAA timelines?
Operations: Is the airport financially stable? Can it operate the facility after construction?

How to strengthen: Provide a signed commitment letter from your city council, port authority board, or state transportation agency confirming match availability. Complete or near-complete environmental documentation (NEPA clearance). Detailed project schedule. Financial statements showing airport stability (3-year audited financials).

Application Strategy: How to Win

ATP applications are scored holistically, but certain strategies consistently improve competitiveness:

Strategy 1: Demonstrate Clear Market Demand

The single best predictor of ATP award is airline support. If American, Delta, Southwest, or another major carrier is willing to expand service pending terminal capacity, your application becomes very competitive.

Action: Schedule meetings with your airline contacts. Ask directly: "Would you add flights/capacity if we expand the terminal?" Get this in writing—a letter from the airline stating their service expansion plans.

Strategy 2: Front-Load Sustainability

The FAA increasingly weights sustainability heavily (20% of score). A project that is merely functional will lose to one that is also green.

Action: Design your terminal to LEED Gold or Platinum standards. Include solar panels (if viable), high-efficiency HVAC, daylight harvesting, water recycling, and robust EV charging. Cost will be slightly higher, but competitiveness will improve dramatically.

Strategy 3: Commit Local Match Early

Applications that show local match is already secured (via city council resolution, port authority commitment, or bonding capacity) score much higher than those saying "we plan to fundraise."

Action: Before submitting your ATP application, obtain board resolutions or signed agreements from your local funding sources confirming their commitment. Have your CFO validate match availability in writing.

Strategy 4: Complete Environmental Documentation

Projects that have already completed NEPA review (Categorical Exclusion or Environmental Assessment) will score higher on readiness. Projects in early planning stages will not.

Action: Begin NEPA review 12+ months before your ATP application. For a typical terminal renovation, the EA process takes 6-12 months. Target completion by the time you submit.

Strategy 5: Engage Your Community

Applications that show meaningful community stakeholder engagement score better on equity. Generic "community outreach" does not work.

Action: Conduct public meetings in advance. Document feedback from local government, business leaders, low-income advocates, and neighborhood groups. Show how you have incorporated their input into the project design.

Historical Award Patterns and Tier Analysis

Since ATP began in FY2022, approximately 50-75 applications have been submitted per year, with roughly 15-25 awards made (25-40% award rate). Here is what the data shows about winning applications:

Large Hub Terminals

Fewer applications (large hubs have PFC and bonding resources)
When they apply, they tend to win if readiness is strong
Projects: $200-500+ million (full terminal replacements or major expansions)
Example winners: New concourses at major hubs, terminal renovation at capacity-constrained airports

Medium Hub and Non-Hub Primaries

Largest volume of applications
Award rate: 30-40% for projects with strong airline support
Projects: $50-150 million (targeted renovations, modest expansions)
Example winners: New gates/holdrooms, baggage system upgrades, TSA processing improvements

Small Airports and Reliever Fields

Fewer applications, higher award rate if submitted
Often competing for smaller pools of funding ($5-30 million range)
Award rate: 50%+ for projects showing strong local support
Example winners: Terminal renovations at underutilized reliever airports, small tower improvements

Takeaway: Medium-sized projects (medium hubs and large non-hubs) face the most competition. Large hubs have abundant other funding. Small airports are fewer in number. If you operate a medium-hub primary, you need to differentiate through readiness, sustainability, and community support.

Application Timeline and Process

Timeline for FY2026 Awards

Event	Target Date
FAA releases FY2026 ATP NOFO (Notice of Funding Opportunity)	January 15, 2026
Application window opens	January 15, 2026
Application deadline	March 31, 2026
FAA scoring and review	April-May 2026
Award notifications	June-July 2026
Grant agreement execution	July-September 2026
Fund obligation deadline	October 31, 2026

Required Application Documents

Project Narrative (10-15 pages)
- Facility description and deficiencies
- Project scope and justification
- How the project addresses scoring criteria (safety, sustainability, equity, readiness)
- Timeline and schedule
Cost Estimate (detailed line-item)
- Design, construction, contingency
- Third-party cost validation (engineer's estimate or quantity takeoff)
Environmental Documentation (NEPA clearance or status)
- If completed: Categorical Exclusion or Environmental Assessment
- If in progress: timeline to completion
- If not started: risk assessment (ATP disfavors applications without NEPA begun)
Local Match Commitment (signed resolutions or agreements)
- Board resolutions from city council or port authority
- Confirmation of match funding source and availability
- CFO certification of financial capacity
Financial Documents
- 3 years of audited financial statements
- Operating budget and forecast
- Debt service coverage ratio analysis
Design Documents
- Preliminary engineering plans (30%+ design minimum)
- 3D renderings (if available)
- Architectural and MEP drawings (overview, not complete set)
Letters of Support
- From airlines (critical)
- From local elected officials
- From workforce development or community groups
- From FAA regional office (optional but helpful)

Coordination with Other Funding Sources

ATP is rarely a standalone funding source. Most successful terminal projects layer multiple funding:

Typical Funding Stack (Example: $100M Terminal Project)

Source	Amount	Notes
ATP grant	$40M	40% of project
PFC revenue	$35M	35% (if airport has PFC authority)
Airport bonds	$15M	15% (revenue bonds backed by terminal revenues)
State DOT grant	$10M	10% (state aviation fund, if available)
Total	$100M	All funded

Strategic approach:

Secure ATP first: It's the hardest money to get and the most prestigious
Layer PFC: Concurrent with ATP application
Pursue state funding: Many states have aviation grant programs; apply simultaneously
Consider bonds: Revenue bonds can close the gap if your airport has sufficient enplanement base
Minimize local tax: Many politically contentious; avoid if possible

The October 31, 2026 Obligation Deadline: What It Means

This is critical: ATP funds awarded in FY2026 must be obligated by October 31, 2026. Obligated means the FAA has signed the grant agreement, and the funds are committed to your airport.

What can go wrong:

Environmental review delays: If your EA is not complete by August 2026, you risk missing the deadline
Design delays: If final design is not ready, FAA may not feel confident signing the grant
Local match commitment delays: If your city council or bonding authority has not approved match by September, you cannot obligate
Unexpected project scope changes: If scoring during review reveals new issues, scope may shift and delay obligation

Contingency planning: If you receive an ATP award in July 2026, you have 3 months to:

Finalize environmental review (if not already done)
Complete preliminary design (at minimum)
Secure all local match commitments in writing
Negotiate and sign the grant agreement with FAA

Many airport sponsors have received ATP awards only to see them recaptured because they could not meet the October 31 deadline. Do not let this happen to you. Begin environmental and design work now, even before the award is announced.

Conclusion and Action Items

ATP represents a generational opportunity for airport terminal investment—and that opportunity is closing. FY2026 is the final year. If your airport is considering terminal work over the next 2-3 years, an ATP application in early 2026 may be essential to your funding strategy.

To maximize your airport's chances:

Confirm eligibility: Is your airport on the NPIAS and authorized to own terminal infrastructure?
Conduct a facility assessment: Document current capacity, deficiencies, and market demand
Engage airlines: Get firm commitments from carriers for expanded service
Begin environmental review now: Do not wait until after award notifications
Secure local match early: Obtain board resolutions before the application deadline
Develop a sustainability strategy: LEED Gold or higher, electrification, resilience
Engage your community: Document stakeholder input and commit to equity measures
Submit a compelling application: Tell the story of why your terminal matters for your region

The $5 billion IIJA terminal funding will be fully deployed by October 31, 2026. Will your airport be among the winners?

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.