Airports are able to pursue funding for digital tower solutions through the standard yearly funding processes provided by the federal government. There are two such grant options which come into play depending on what type of airport the facility is.
Airport Improvement Program (AIP) – Tower Construction
The Airport Improvement Program (AIP) provides grants to public agencies for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems (NPIAS).
The Airport Improvement Program (AIP) is the primary federal mechanism for airport infrastructure funding, including the construction of or replacement of air traffic control (ATC) towers when justified and included in the National Plan of Integrated Airport Systems (NPIAS).
In addition to being included in the NPIAS list, qualifying airports need to fall into one of the following three categories: publicly owned, privately owned but designated by FAA as a reliever, privately owned but having scheduled service and at least 2,500 annual enplanements.
For the FAA to consider a project for AIP funding, the following criteria must also be met:
- The project sponsorship requirements have been met
- The project is reasonably consistent with the plans of planning agencies for the development of the area in which the airport is located
- Sufficient funds are available for the portion of the project not paid for by the Federal Government
- The project will be completed without undue delay
- The airport location is included in the current version of the NPIAS
- The project involves more than $25,000 in AIP funds
- The project is depicted on a current airport layout plan approved by FAA.
The grants typically cover between 75% and 90% of eligible project costs, depending on the airport's size and the type of project. The remaining balance must be covered by local or state matching funds.
AIP Annual Timeline
Activities to secure funding take place throughout the Federal Government's fiscal year:
August – November
Airports update CIP submissions
October – December
FAA reviews submissions and builds the national ACIP
January – March
Congress finalizes AIP appropriations
September 30
Federal fiscal year ends and all funds must be obligated
March – September
FAA issues grant offers and projects move into execution
Primary AIP Resources
- Airport Improvement Program (AIP)
- FAA Regional Airports Division and Airport District Office (ADO)
- FAA Headquarters, Office of Airports (ARP)
- FAA Air Traffic Organization for coordination on airspace issues
- AIP Handbook (FAA Order 5100.38D)
- AIP Handbook (Alternate Access Page)
- Airports Capital Improvement Plan (ACIP)
Federal Contract Tower (FCT) Program – Tower Construction and Modernization Grants
As a part of the Infrastructure Investment and Jobs Act, up to $600 million over 10 years can be allocated for the modernization of airport traffic control towers. These funds will allow airports to 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; and construct a remote tower certified by the FAA. Grants typically fund 100% of projects.
As of January 2026, 186 airports are eligible for the IIJA FCT competitive grant program, with 163 enrolled in the FCT program and 23 on the candidate list. Check to see who's on the list.
FCT Annual Timeline
The timeline for the FCT program runs on a calendar year timeline:
January
NOFO typically released in January
February
Application window typically closes in February
Later
Awards follow later in the fiscal year based on evaluations and funding availability
Primary FCT Resources
Environmental Resources
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