USCTA Alert

FAA Releases Notice of Funding Opportunity for FY26 FCT Competitive Grant Program

January 16, 2026

The FAA today released a notice of funding opportunity that outlines how contract tower airports can apply for a share of up to $120 million in Infrastructure Investment and Jobs Act (IIJA) funding in Fiscal Year 2026 to upgrade airport-owned contract towers.

Of that amount, $20 million comes from the familiar FAA Contract Tower (FCT) Competitive Grant Program and up to $100 million may also be available from FY22 unobligated Airport Infrastructure Grant funds. This combination could translate into substantially more funding available for contract tower airports in FY26 than in previous years.

Funding Background

As a reminder, USCTA successfully convinced Congress to include at least $300 million in the IIJA to upgrade aging contract towers. Of that amount, $100 million is reserved for FCT airports to repair, replace, and relocate sponsor-owned towers, or $20 million annually. The FAA has already selected 93 FCT tower projects for funding in FY22, FY23, FY24, and FY25.

The IIJA also included USCTA-backed language that could boost funding for contract tower upgrades in the years ahead. Beginning in FY26, contract towers may receive up to $100 million annually from unobligated AIG funds. Over five years, this could amount to as much as an additional $500 million for contract tower improvements.

Application Deadline

The FAA has published the latest FCT NOFO, the application form, and other details on its IIJA website. The agency indicates that the deadline for submitting applications is no later than February 17, at 5:00 p.m. Eastern Time. The NOFO underscores that is a firm deadline and that the agency will not accept any late applications.

Overview of the FCT Competitive Grant Program

The NOFO provides an overview and detailed information regarding the FCT Competitive Grant Program, which provides $20 million via discretionary, competitive grants annually for five years (FY22–FY26) for projects at sponsor-owned ATC towers.

As outlined in the NOFO, the FAA intends to consider eligible projects that will “sustain, construct, repair, improve, rehabilitate, modernize, replace, or relocate non-approach control towers; acquire and install air traffic control, communications to be used in those towers, and related equipment in those towers; or construct a remote tower certified by the FAA….”

As in previous years, the latest NOFO points out that “the Federal cost share of the FCT Competitive Grant Program is 100 percent for all airports eligible to receive grants.”

Application Process

Applications for FY26 FCT competitive grants must be submitted using Form 5100-144. The application form requires airports to provide a brief project description, targeted timeframe dates, information about project status, and details about the age of the tower, the status of siting studies, etc.

According to the FAA, “those airports that applied under the FY26 ATP NOFO for projects that may be eligible under this FCT NOFO do not have to reapply.” Any questions regarding applications can be directed to the appropriate Regional Office (RO), Airports District Office (ADO), State Agency for Airports covered under the FAA SBGP, or the FAA IIJA Team at: IIJA.Airports@faa.gov.

Resources

USCTA Membership Reminder

Thanks to those contract tower airports that paid their 2025 USCTA dues. For those airports interested in renewing their membership including those that have received funds from the FCT Competitive Grant Program, please contact Brad Van Dam at 703-797-2534. Membership renewal will ensure you continue to receive regular updates on this and other grant opportunities.