Reconstruct terminal components

The Federal Aviation Administration (FAA) awarded the City of Palm Springs $8.38 million on September 18, 2025, under the Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs (CFDA 20.106). This formula grant funds Phase 1 of a terminal reconstruction project at Palm Springs International Airport, with completion anticipated by September 17, 2029. The funded activities include site enabling work, building expansion, and electrical infrastructure improvements necessary to support the installation of a new baggage handling system designed to enhance passenger and baggage movement efficiency throughout the terminal.

This award represents a portion of the total eligible project costs, with additional funding provided through a complementary Airport Infrastructure Grant and Airport Terminal Program grant. The formula grant mechanism ensures predictable, formula-based allocation of FAA airport development resources to support the modernization of critical aviation infrastructure and contribute to the FAA's strategic objectives of safety, operational excellence, and long-term economic benefits through transportation infrastructure investment.

Activities and expected outcomes

This project reconstructs existing terminal by installing a new baggage handling system to improve the movement of passengers and baggage. This grant funds a portion of phase 1, which consists of site enabling work, building expansion, and proposed electrical work. This grant is associated with an airport infrastructure grant and an airport terminal program grant that fund the remaining eligible portion of the project. Intended beneficiary: this grant will provide federal funding for airports associated with palm springs, california.