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LAX secures $289 million in federal funding for new terminal access roads

LAX secures $289 million in federal funding for new terminal access roads

Built World Los Angeles, CA local

Federal Aviation Administration award funds Phase 3 of a roadway separating airport traffic from Sepulveda Boulevard

August 28th, 2026: Federal government records $289.3 million award to LAWA

Overview

Updated 1 hour ago

Los Angeles International Airport is getting $289.3 million from the Federal Aviation Administration to build a new access road that separates airport traffic from the gridlock on Sepulveda Boulevard. The award funds Phase 3 of a 17,410-foot roadway serving Terminals 1-8 and B, covering construction of 7,955 feet.

The road is part of LAX's Airfield and Terminal Modernization Program, a multi-billion-dollar overhaul timed to the 2028 Summer Olympics. Los Angeles World Airports (LAWA) says the new inbound roads should open before the Games, with outbound roads complete by 2030.

Why it matters

If the new access roads miss the 2028 Olympics deadline, Olympic travelers will hit the same Sepulveda Boulevard gridlock the project was built to fix.

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Key Indicators

$289.3M
Phase 3 FAA award
Federal grant for construction of 7,955 feet of the terminal access road serving LAX Terminals 1-8 and B.
$368.6M
Total AIG grants FY2022-26
Cumulative Airport Infrastructure Grant funding LAWA has received for its transformation program.
5.3 km
Total new access road
The 17,410-foot roadway separating airport traffic from Sepulveda Boulevard.
2.4 km
Phase 3 construction
The 7,955-foot segment covered by this grant.
2028
Ingress completion target
New inbound roads scheduled to open before the Summer Olympics.

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People Involved

Organizations Involved

Timeline

2 events Latest: August 28th, 2026 · 3 weeks ago
  1. Federal government records $289.3 million award to LAWA

    Latest Funding

    USAspending records the obligation for Phase 3 of the 17,410-foot terminal access road, covering construction of 7,955 feet serving Terminals 1-8 and B.

  2. Transportation Secretary Sean Duffy announces $289M FAA grant for LAX

    Funding

    Duffy announced the Airport Infrastructure Grant through the FAA, supporting new ingress roadways that separate airport traffic from Sepulveda Boulevard.

Scenarios

1

Ingress roads open before the 2028 Olympics

Likely Resolves by Jul 19, 2028

Discussed by: LAWA leadership and city officials, who have tied the project timeline to the Games

LAWA states the new inbound roadways will be complete ahead of the 2028 Summer Olympics, with outbound roads following by 2030. The federal grant is intended to keep that schedule on track. If construction holds, the roads open to traffic before the Olympic opening ceremony in July 2028.

2

Egress roads slip past 2030

Possible Resolves by End of 2030

Discussed by: Infrastructure observers who note airport megaprojects often miss deadlines

Large airport projects routinely fall behind schedule. If the outbound portion of the roadway project, set for completion by 2030, slips, LAX's transformation extends beyond its stated timeline. The Olympics deadline pressures the ingress phase; the egress phase has no comparable external constraint.

3

Cost overruns trigger additional federal funding

Possible Resolves by End of 2028

Discussed by: Construction analysts and federal budget watchers

The $289.3 million award covers only Phase 3. The full ATMP Roadways project reconfigures 4.4 miles of roads, and the broader transformation spans terminals, a people mover, and a rental car center. If costs exceed current estimates, LAWA may seek supplemental federal appropriations or draw on local funding sources. A request for additional federal money would show up as new FAA grant awards.

Historical Context

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

November 1989 - February 1995

Denver International Airport construction (1989-1995)

Denver's new airport, meant to replace Stapleton International, was budgeted at $1.7 billion and ballooned to $4.8 billion. The automated baggage system failed in repeated tests, delaying the opening 16 months.

Then

The airport opened in February 1995 with a manual baggage system; the automated system was abandoned entirely in 2005.

Now

Denver International became a major hub and one of the busiest US airports, but the episode remains the standard example of airport megaproject cost and schedule overruns.

Why this matters now

LAX's ATMP is a multi-billion-dollar airport build with a hard Olympic deadline. Denver shows how cost and schedule overruns can compound when new systems don't perform as designed.

March 2008

Heathrow Terminal 5 opening (2008)

British Airways moved all Heathrow operations into the new Terminal 5 on March 27, 2008. The baggage system broke down within hours, stranding 28,000 bags and forcing hundreds of flight cancellations.

Then

British Airways canceled 671 flights in the terminal's first 11 days; the terminal operated at a fraction of capacity for weeks.

Now

Terminal 5 stabilized within months and became a functioning part of Heathrow. The lesson: a completed, on-time build doesn't guarantee a smooth opening.

Why this matters now

LAX's new access roads must handle Olympic traffic from day one. The parallel is about operational readiness, not just finishing construction on schedule.

Sources

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