USCTA Alert

September 18, 2026

The FAA today released a notice of funding opportunity that outlines how contract tower airports can apply for a share of up to $100 million in Fiscal Year 2027 Infrastructure Investment and Jobs Act (IIJA) funding to upgrade airport-owned contract towers. There is a quick turn on this since airports will need to submit their applications by October 19 at 5:00 p.m. Eastern Time.

Although initial IIJA funding is expiring in FY26, contract tower airports are eligible to receive up to $100 million in unobligated Airport Infrastructure Grant (AIG) funding annually between FY26 and FY30. Based on conversations with FAA staff, we expect the total amount of unobligated AIG funds that will be available to contract tower airports in FY27 will be between $55 million and $60 million. 

Funding Background

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 between FY22 and FY26.

The IIJA also included other USCTA-backed language to provide additional funding for contract tower upgrades. Beginning in FY26, contract towers are eligible to receive up to $100 million annually from unobligated AIG funds. In FY26, contract tower airports received a total of $85.8 million -- $20 million in annual IIJA funding and $65.8 million in unobligated AIG funds.

Application Deadline

The deadline for submitting applications for this latest NOFO is no later than October 19, 2026, at 5:00 p.m. Eastern Time. The FAA underscores that is a firm deadline and that the agency will not accept any late applications.

Overview of the FCT Competitive Grant Program

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, and related equipment to be used in those towers; or construct a remote tower, herein referred to as digital tower(s) certified by the FAA, including acquisition and installation of air traffic control, communications, or related equipment.” The Federal cost share is 100 percent.

Application Process

Applications for FY27 FCT competitive grants must be submitted using Form 5100-144. 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

• FY27 FCT Notice of Funding Opportunity

• FY26 FAA Contract Tower Competitive Grant Final Selections

• FY25 FAA Contract Tower Competitive Grant Final Selections

• FY24 FAA Contract Tower Competitive Grant Final Selections

• FY23 FAA Contract Tower Competitive Grant Final Selections

• FY22 FAA Contract Tower Competitive Grant Final Selections

• More Resources on FCT Competitive Grant Program