USCTA Alert

December 8, 2025

This evening, the Federal Aviation Administration (FAA) released the notice of funding opportunity (NOFO) that outlines how airport sponsors can apply for a share of approximately $1 billion in fiscal year 2026 (FY26) discretionary funds under the Airport Terminal Program (ATP), which was created by the Infrastructure and Investment and Jobs Act (IIJA). The goal of the ATP is to make annual grants for terminal development projects that will improve airport infrastructure. In the NOFO, FAA outlines how airports can apply for the fifth and final year of ATP funding and how the agency will evaluate applications and proposed projects.
 
FAA has set Thursday, January 15, 2026, at 5 p.m. ET, as the deadline for submitting applications. FAA published the NOFO and the application form in separate parts of its website. You can view the NOFO here and the application form here. As discussed below, the application for FY26 ATP funding is nearly identical to the previous fiscal year. While the NOFO does not change any of the statutory criteria used for evaluating applications for ATP funding, the notice does outline the Trump administration’s priorities and goals for the funding. We highly encourage you to carefully review the NOFO and the selection criteria before applying.
 
Overview of the ATP. The NOFO provides an overview and detailed information regarding the ATP. Under the program, FAA is providing $5 billion ($1 billion annually) to airports via discretionary, competitive grants for eligible terminal projects. FAA has already announced over $3.8 billion in FY22, FY23, FY24, and FY25 ATP grants that are funding over 440 projects. As explained in the NOFO, the program is governed by key statutory requirements outlined by Congress in the IIJA, which remain the same from previous years:

• Distribution by Hub Size: The $1 billion for FY26 ATP grants is subject to the following award allocation limitations: 55% for large hub airports; 15% for medium hub airports; 20% for small hub airports; and not less than 10% for nonhub and nonprimary airports.
• Eligible Projects: Eligible projects for funding under the ATP include: (1) airport terminal development projects; (2) on-airport rail access projects; and (3) projects for relocating, reconstructing, repairing, or improving an airport-owned air traffic control (ATC) tower.
• Project Considerations: Under the IIJA, Congress directed FAA to consider projects that (a) increase capacity and passenger access, (b) replace aging infrastructure, (c) expand accessibility for persons with disabilities, (d) improve airport access for historically disadvantaged populations, (e) improve energy efficiency, (f) improve airfield safety through terminal relocation, and (g) encourage actual and potential competition.
• Local Match: The federal cost share for ATP grants is 80% for large and medium hub airports; and 95% for the remainder of eligible airports.
  
  

FY26 ATP Application Process and Timelines. Airport sponsors applying for an FY26 ATP grant must use FAA Form 5100-144, “Infrastructure Investment and Jobs Act (IIJA), Competitive Grant Project Information,” which can be found on the FAA’s website here.
The application form requires sponsors to provide a brief project description and overview; targeted timeframes for understanding the scope of costs, executing a grant, and beginning construction; information about the status of the proposed project; and details about how the proposed project will satisfy the criteria FAA must consider when selecting grants for funding.
 
AAAE compared the application for FY25 ATP grants and the application for FY26 ATP grantsapplication for FY26 ATP grants. The FY26 ATP grant application removed a box that allowed sponsors to explain how a proposed terminal or tower project “will create good-paying jobs.” The “good-paying jobs” criterion was an additional requirement the Biden administration added in previous years, although it was not specifically outlined in the IIJA law. Aside from that change, the grant applications are nearly identical.
 
Any questions regarding applications can be directed to your Regional Office or Airports District Office or the FAA Office of Airports IIJA Team at IIJA.Airports@faa.gov. The application form and NOFO have instructions on how to submit an application to FAA for consideration. Applications must be submitted electronically by 5 p.m. ET on Thursday, January 15, 2026. If an airport sponsor is selected to receive an FY26 ATP grant, FAA has set Friday, October 30, 2026, as the deadline for the sponsor to ensure a grant agreement is executed for the project.
 
FY26 ATP Grant Selection Criteria. In the NOFO, FAA outlines the criteria that will be used to evaluate applications for FY26 ATP funding. The following five criteria will be taken into consideration:

• The project must meet the eligibility requirements under the ATP (i.e., considered an eligible project as described above).
• FAA will consider the timeliness of implementation, with priority given to those projects that can satisfy all requirements for a grant award by October 30, 2026.
• Consideration will be given to “eligible and justified” projects that advance specific objectives identified by Congress under the IIJA. This includes projects that (a) increase capacity and passenger access, (b) replace aging infrastructure, (c) expand accessibility for persons with disabilities, (d) improve airport access for historically disadvantaged populations, (e) improve energy efficiency, (f) improve airfield safety through terminal relocation, and (g) encourage actual and potential competition. The NOFO provides much more detail on how each of these objectives will be evaluated with respect to a proposed project, and there are some differences from previous years. For example, FAA provides a different list that describes which communities are considered “disadvantaged” for purposes of the criteria. In addition, while references to climate change and reducing emissions have been removed, the NOFO directs applicants to explain how a project may enhance energy efficiency by reducing energy consumption.
• ATC tower projects will be evaluated based on their overall impact on the National Airspace System (NAS), including age of facility, operational constraints, and nonstandard facility conditions.
• FAA will provide a preference to projects that achieve a complete development objective, even if awards for the project must be phased, and priority will be given to projects that have already received partial awards.

   
Projects Advancing Administration Goals. With the change in administrations, airport sponsors should carefully review the criteria that will be used for evaluating applications to ensure a proposed project aligns with the Trump administration’s goals and priorities. Based on our review of the NOFO, there are two key takeaways:

• Promoting Family-Friendly Facilities: In the NOFO, FAA indicated the agency will prioritize projects that align with the administration’s “focus on the American family by ensuring a more seamless travel experience and enhancing existing family facilities.” FAA encouraged sponsors to include components in proposed terminal projects that enhance the travel experience for families, such as adding mothers’ rooms or new family restrooms, reconfiguring security checkpoints to ensure adequate space for dedicated family screening lanes, or creating more children’s play areas or exercise areas. Along these same lines, DOT issued a press release today explaining its “Make Travel Family Friendly Again” campaign.
• Principles Governing DOT’s Policies, Programs, and Activities: In the NOFO, FAA explains that DOT intends to apply principles from DOT Order 2100.7 when evaluating applications and making award selections. The order was released earlier this year and outlines the principles that govern implementation of all DOT policies, programs, and activities. In the order, DOT emphasized that the department will prioritize for grant funding, to the extent permitted by law, projects and goals that, among other things, (a) utilize user-pay models; (b) mitigate the unique impacts of DOT programs, policies, and activities “on families and family-specific difficulties”; and (c) give preference to “communities with marriage and birth rates higher than the national average.”