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FAA opens largest-ever grant window for small airport tower upgrades

FAA opens largest-ever grant window for small airport tower upgrades

Built World
By Newzino Staff |

A six-fold funding surge and 100% federal cost share mark the final year of a five-year infrastructure program—and the first real funding path for remote towers in the U.S.

January 21st, 2026: FAA Opens FY2026 Grant Round With $120 Million Available

Overview

For decades, small and regional airports have relied on aging air traffic control towers built in the 1960s and 1970s, with limited federal help for upgrades. On January 21, 2026, the Federal Aviation Administration (FAA) quietly opened a grant window that makes up to $120 million available—six times the annual norm—at 100% federal cost, covering everything from tower reconstruction to the construction of FAA-certified remote towers. It is the final and largest funding round of a five-year program created by the 2021 Infrastructure Investment and Jobs Act.

The funding surge comes from an unusual mechanism: $100 million in unspent funds from the program's first year automatically roll into the contract tower grant pool in the fifth year, stacking on top of the regular $20 million annual allocation. For the roughly 250 airports in the FAA's Contract Tower Program—mostly small-city and regional fields that rely on privately operated control towers rather than FAA staff—this creates a one-time opportunity to fund projects that previous $20 million rounds couldn't cover. The grant window also explicitly includes remote tower construction, a technology already operational at dozens of European airports but not yet certified for use anywhere in the United States.

Key Indicators

$120M
Total FY2026 funding available
Six times the standard $20M annual allocation, due to $100M in unobligated FY2022 funds rolling over
100%
Federal cost share
No local matching funds required—rare for federal infrastructure grants
~250
Eligible airports
Airports in the FAA Contract Tower Program and Cost Share Program, mostly small-city and regional fields
0
U.S. certified remote towers
Despite a decade of pilots and Congressional mandates, no remote tower has been certified for operational use in the U.S.

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People Involved

Jesse Carriger
Jesse Carriger
Manager, FAA Office of Airports IIJA Infrastructure Branch (APP-540) (Overseeing FY2026 FCT grant applications)
Sean P. Duffy
Sean P. Duffy
United States Secretary of Transportation (Overseeing Department of Transportation programs including FAA grants)

Organizations Involved

Federal Aviation Administration (FAA)
Federal Aviation Administration (FAA)
Federal Agency
Status: Administering final year of five-year IIJA tower grant program

The FAA regulates U.S. civil aviation, operates the national air traffic control system, and administers airport infrastructure grants.

Colorado Department of Transportation
Colorado Department of Transportation
State Agency
Status: Advancing remote tower project at Northern Colorado Regional Airport

Colorado's transportation agency is backing the most advanced remaining U.S. remote tower project, at Northern Colorado Regional Airport near Fort Collins.

Timeline

  1. FAA Opens FY2026 Grant Round With $120 Million Available

    Grant Program

    The FAA published the final-year Notice of Funding Opportunity with six times the usual funding—$20 million in new money plus $100 million in unspent FY2022 funds—at 100% federal cost share, with applications due February 17, 2026.

  2. DOGE-Linked FAA Layoffs Raise Aviation Safety Concerns

    Workforce

    Approximately 400 FAA employees were laid off as part of federal workforce reductions, though air traffic controllers were exempted after intervention by Secretary of Transportation Sean Duffy.

  3. FAA Opens FY2025 Grant Round

    Grant Program

    The fourth annual round made $20 million available, with applications due September 18, 2024. Awards funded 20 airport towers across 15 states.

  4. FAA Reauthorization Act Mandates Remote Tower Program

    Legislation

    Congress passed the FAA Reauthorization Act of 2024, which requires the FAA to create a formal remote tower approval program and expand testing beyond the FAA Technical Center to at least three airport sites.

  5. FAA Ends Remote Tower Pilot at Leesburg, Virginia

    Setback

    After nearly a decade of testing, the FAA effectively terminated the remote tower pilot at Leesburg Executive Airport. Technology vendor Saab withdrew, and the airport pivoted to planning a conventional tower.

  6. First Round Awards: 33 Grants to 29 Airports

    Grant Award

    The FAA selected 29 airports for $20 million in tower modernization grants, including projects ranging from new tower construction in Columbus, Indiana to lighting system replacements in Joplin, Missouri.

  7. FAA Opens First Contract Tower Grant Round (FY2023)

    Grant Program

    The FAA published its first Notice of Funding Opportunity for the new program, making $20 million available for tower construction, rehabilitation, and equipment upgrades at eligible airports.

  8. Infrastructure Investment and Jobs Act Signed Into Law

    Legislation

    The bipartisan law allocated approximately $25 billion for the national airspace system, including $100 million over five years specifically for the new Contract Tower Competitive Grant Program—the first dedicated federal funding stream for airport-owned tower upgrades.

  9. Sweden Approves World's First Operational Remote Tower

    Technology

    Sweden's air navigation service provider approved the first remote tower providing aerodrome air traffic services, launching a wave of European deployments that would eventually reach over 30 airports across Scandinavia, Norway, and the Netherlands.

  10. FAA Launches Contract Tower Program at Five Airports

    Policy

    Born from the PATCO strike aftermath, the FAA began contracting private companies to staff control towers at low-activity airports. The program has since expanded to over 250 towers.

  11. Reagan Fires 11,000 Striking Air Traffic Controllers

    Origin

    President Reagan fired over 11,000 striking members of the Professional Air Traffic Controllers Organization (PATCO), forcing the FAA to close 60 lower-activity towers and find alternative staffing models.

Scenarios

1

Airports Rush Applications, Setting Off Largest Tower Upgrade Wave in Decades

Discussed by: Airport industry groups (AAAE, AOPA) and state aviation offices tracking the February 17 deadline

The combination of $120 million in available funding, zero local match requirements, and a hard application deadline could trigger a surge of applications from airports that previously couldn't afford tower projects. If most of the $120 million is obligated, it would represent more tower investment in a single year than the prior four years combined, with projects breaking ground at dozens of small and regional airports by late 2026 or 2027.

2

Remote Tower Funding Claimed but Certification Remains Stalled

Discussed by: Reason Foundation aviation policy analysts, remote tower technology vendors (Saab, Frequentis, RTX), and the Colorado Department of Transportation

Airports may apply for remote tower construction funding under the grant, but since no remote tower has been certified for operational use in the U.S., the money could sit unspent or be redirected to conventional projects. The FAA Reauthorization Act of 2024 mandates a formal approval program, but the agency's track record—a decade of pilots with zero certifications—suggests the regulatory bottleneck may outlast the funding window.

3

Federal Workforce Cuts Slow Grant Administration and Project Oversight

Discussed by: Congressional oversight committees, Department of Transportation Inspector General, aviation labor unions (NATCA)

Recent FAA workforce reductions could reduce the agency's capacity to process a surge of grant applications and oversee the resulting construction projects. If the FAA cannot obligate the $120 million before the funds' statutory expiration window, some money could go unspent—an outcome that would undermine the program's purpose of addressing aging tower infrastructure at the airports that need it most.

4

Program Success Builds Momentum for Reauthorization of Tower Funding Beyond 2026

Discussed by: Congressional transportation committees, National Association of State Aviation Officials, airport advocacy organizations

If the five-year program demonstrates measurable results—dozens of towers modernized, projects completed on time—it could become a template for continued funding in future FAA reauthorization bills. The 2024 reauthorization already extended FAA programs through fiscal year 2028, and a successful track record would strengthen the case for a permanent or extended contract tower grant program.

Historical Context

PATCO Strike and Birth of Contract Towers (1981–1982)

August 1981 – 1982

What Happened

On August 3, 1981, nearly 13,000 members of the Professional Air Traffic Controllers Organization walked off the job. President Reagan fired 11,345 who refused to return within 48 hours. The FAA closed 60 low-activity towers and scrambled to staff the rest with supervisors, non-strikers, and military controllers.

Outcome

Short Term

The FAA launched a pilot program contracting private companies to operate five of the shuttered towers, proving that competent air traffic control could be delivered outside the federal workforce.

Long Term

The Contract Tower Program expanded to over 250 airports and became the backbone of air traffic control at small and regional fields nationwide—the very airports now eligible for the FY2026 modernization grants.

Why It's Relevant Today

The FY2026 grant program is a direct descendant of the post-strike contract tower model. The infrastructure being modernized today—towers at small airports staffed by contractor employees—exists because of decisions made in the strike's aftermath 44 years ago.

Scandinavian Remote Tower Rollout (2015–2022)

April 2015 – December 2022

What Happened

Sweden approved the world's first operational remote tower in 2015 at Örnsköldsvik Airport. Norway then deployed remote tower technology to 15 airports by late 2022, all controlled from a single center in Bodø. The Netherlands began implementing Saab-built remote systems for regional airports controlled from Amsterdam Schiphol.

Outcome

Short Term

Scandinavian countries demonstrated that camera-based remote towers could safely replace physical towers at lower-traffic airports, often at a fraction of the construction and staffing cost.

Long Term

Remote towers became routine infrastructure in northern Europe. Over 30 airports now operate under remote control, creating a proven operational record that the FAA has studied but not yet replicated.

Why It's Relevant Today

The FY2026 grant program explicitly funds remote tower construction, but the U.S. has zero certified remote towers despite Europe's decade-long operational track record. The gap illustrates the regulatory—not technological—barrier that has kept American small airports dependent on conventional towers.

Federal-Aid Airport Program Launch (1946)

May 1946

What Happened

President Truman signed the Federal Airport Act, creating the first peacetime program of federal grants for civilian airport development. Twin Falls, Idaho received the first grant: $384,000 for initial development of what is now Magic Valley Regional Airport.

Outcome

Short Term

The program funded basic runway and facility construction at hundreds of small airports that had served as military training fields during World War II.

Long Term

It established the principle—still in effect 80 years later—that the federal government has a role in funding infrastructure at airports too small to finance improvements on their own. The program evolved through several iterations into today's Airport Improvement Program.

Why It's Relevant Today

The FY2026 Contract Tower grant continues an 80-year federal tradition of investing in small airport infrastructure. The 100% federal cost share echoes the original program's recognition that rural and small-city airports cannot self-fund the safety infrastructure their communities depend on.

12 Sources:
+6
Federal Register Federal Aviation Administration Grants.gov U.S. Department of Transportation Reason Foundation Congress.gov Colorado Department of Transportation PBS NewsHour Federal Aviation Administration Federal Aviation Administration Federal Aviation Administration Federal Aviation Administration