FAA to give airports $1 billion for terminals and upgrades

Travelers check in at the airport
Travelers check in at Minneapolis-St. Paul International Airport on Friday, July 1, 2022.
Kerem Yücel | MPR News

The Biden administration is giving nearly $1 billion to 85 airports across the country — including four in Minnesota — to expand and upgrade terminals and other facilities, using money approved in last year's huge infrastructure bill.

Transportation Secretary Pete Buttigieg said the projects will help meet future demand for travel and make flying safer and more efficient.

“I don’t think anybody could look at airports across America today and say that the existing system and existing levels of funding have been adequate,” Buttigieg told reporters.

The grants announced Thursday are the first installment of $5 billion for airport projects that were included in an infrastructure bill that Congress approved and President Joe Biden signed last November.

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The grants to Minnesota airports include a total of more than $21 million for Minneapolis-St. Paul International Airport, including more than $10 million to replace a failing concrete roof on one of the terminals.

The grants to MSP also include money to replace five passenger boarding bridges, and relocate another; modify walkways and ramps to meet ADA requirements and better utilize space; and replace two electrical substations that serve the baggage system and a security checkpoint.

Also in Minnesota:

  • The Fillmore County Airport in Preston will get $950,000 for a new terminal

  • The Glencoe Municipal Airport will get more than $700,000 for a new terminal

  • The Bemidji Regional Airport will get $95,000 to improve its security checkpoint

Elsewhere across the country, the largest of the Federal Aviation Administration grants include $60 million to improve the terminal and replace the bag-handling system at Denver International Airport, $50 million apiece for Boston's Logan Airport and Orlando International Airport in Florida, $49.6 million for Dulles Airport outside Washington, D.C., to build a new concourse and $20 million for Pittsburgh International Airport to build a new terminal next to the old one.

The main airports in Detroit and Philadelphia will get more than $20 million each to renovate their restrooms.

The FAA said 532 airports submitted applications for 658 projects that, if all had been granted, would have totaled more than $14 billion.

In the past, federal funds have gone largely into runways, taxiways and towers while airports paid for terminal upgrades with money they get from passenger facility charges, or PFCs — up to $4.50 per flight that is tacked onto every airline ticket.

Buttigieg said it is fine to spend taxpayer money on projects that were generally funded by passenger fees in the past because “there is a need out there; taxpayers expect it and want it.”

Congress could consider raising ticket taxes for airport projects next year. Airports want to raise the fees, but airlines don’t.

MPR News contributed to this report.