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Austin-Bergstrom lands $90M federal grant to build new Concourse B

Austin-Bergstrom lands $90M federal grant to build new Concourse B

Built World Austin, TX local

Largest award in the FAA's 2026 terminal grant round funds construction of the 26-gate midfield concourse

September 17th, 2026: FAA awards $90M for Concourse B

Overview

Updated 48 minutes ago

The Federal Aviation Administration has committed $90 million to build Concourse B at Austin-Bergstrom International Airport — the largest single award in the agency's 2026 terminal grant round. The money covers phase two of the 860,810-square-foot midfield concourse, which will add 26 gates to an airport that has run over capacity for years.

The concourse is the centerpiece of Journey With AUS, a multi-billion-dollar expansion that also includes new taxiways, a bigger main terminal, and an underground tunnel connecting Concourse B to the Barbara Jordan Terminal. The airport said it had already pulled in $96.34 million from the same grant program for the concourse and tunnel.

Federal terminal money is a new lever. Before the 2021 infrastructure law created the Airport Terminal Program, the FAA rarely paid for terminal buildings. Now Austin is stacking those grants with airport revenue bonds and city cash to close out a project expected to open in the early 2030s.

Why it matters

Austin's airport has exceeded capacity for years; this grant funds 26 new gates and tests whether federal money will keep the multi-billion-dollar build on schedule.

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Key Indicators

$90M
FAA grant for Concourse B phase 2 construction
Largest single award in the FAA's 2026 Airport Terminal Program round.
26
New gates planned for Concourse B
Southwest takes 18, United five, and three are set for common use.
860,810 sq ft
Concourse B floor area
The planned size of the new midfield terminal.
$108M
FAA letter of intent for airfield work
Long-term federal commitment toward new taxiways supporting the concourse.

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People Involved

Organizations Involved

Timeline

March 2016 September 2026

6 events Latest: September 17th, 2026 · 3 weeks ago
Tap a bar to jump to that date
  1. FAA awards $90M for Concourse B

    Latest Funding

    FAA awards $90 million for Concourse B construction, phase two.

  2. FAA issues $108M letter of intent

    Funding

    FAA issues $108 million letter of intent for new taxiways at AUS.

  3. Bipartisan letter backs AUS funding

    Political

    Texas representatives sign bipartisan letter backing federal AUS funding.

  4. FAA terminal grant program begins

    Program Launch

    FAA's Airport Terminal Program begins giving about $1 billion a year.

  5. City leases South Terminal to Lonestar

    Contract

    City signs 40-year lease with Lonestar to run the South Terminal.

Scenarios

1

Concourse B Opens in the Early 2030s

Likely Resolves by End of 2032

Discussed by: City airport officials and the FAA, who frame the grant as moving construction forward

Construction proceeds through the announced phases and the concourse opens to passengers as planned. The $90 million is one installment in a funding stack that also includes prior ATP grants, the $108 million airfield letter of intent, airport revenue bonds, and city cash.

2

Austin Wins More FAA Grants to Sustain the Build

Possible Resolves by Q3 2027

Discussed by: AUS officials, who said the airport would keep applying for competitive federal funding

The airport continues to win annual Airport Terminal Program awards as it builds toward the early 2030s opening. Each new award on the federal grant record extends federal co-funding of the terminal and reduces reliance on bonds.

3

Funding or Schedule Problems Delay the Project

Uncertain Resolves by End of 2029

Discussed by: Bond market reporting on the program's $3-4 billion cost and typical airport overruns

The multi-billion-dollar program hits a funding shortfall or schedule slip, pushing Concourse B's opening past the early 2030s. Other large airport expansions have faced cost growth and condemnation litigation, and the city already paid $90 million to clear the South Terminal.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

June 2005

Kelo v. New London (2005)

The Supreme Court ruled 5-4 that New London, Connecticut could seize private homes under eminent domain and transfer the land to a private developer for a planned Pfizer research campus. Suzette Kelo's house was among those condemned.

Then

The decision sparked a national backlash and new state-level restrictions on eminent domain for private development. The Pfizer campus was never built as planned.

Now

Kelo remains the reference point for fights over government taking property to advance private redevelopment.

Why this matters now

Austin used the same power to take the South Terminal from its private operator, and a court set the price at $90 million — 46 times the city's original offer.

2003-2021

Chicago O'Hare Modernization Program (2003-2021)

Chicago began a multi-billion-dollar plan to reconfigure O'Hare's runways, condemning homes, wetlands, and St. Johannes Cemetery in the suburbs of Bensenville and Elk Grove Village.

Then

Suburban towns and property owners sued for years, briefly halting work. The Supreme Court declined to hear the case in 2005, letting construction proceed.

Now

The runway program was completed in phases through 2020, showing how even successful airport expansions carry years of condemnation litigation.

Why this matters now

Austin's path mirrors this: the city won the right to proceed in federal court even as it paid Lonestar $90 million, and construction is now moving forward.

Sources

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