Construct/expand fuel farm

The Department of Transportation Federal Aviation Administration Southern Region awarded $5.778 million to the Lexington-Fayette Urban County Airport Board on August 3, 2026, under the Airport Infrastructure Grants program (CFDA 20.117) to construct and expand an existing fuel farm at Blue Grass Airport in Lexington, Kentucky.

The project expands the fuel farm by adding five 40,000-gallon fuel tanks to increase availability of an existing fuel type. The expansion enables the airport to generate additional revenue and operate more self-sustainably. This project qualifies under the expanded eligibility provisions of the Infrastructure Investment and Jobs Act.

Work is performed at Lexington, Kentucky 40510 with a period of performance through August 2, 2030. The assistance type is a Project Grant with a lump-sum award structure; assistance is released upon application for reimbursement of expenses. Recipient records are subject to inspection by the FAA, DOT, Office of the Inspector General, and the Government Accountability Office. An airport layout plan must remain current for the duration of the grant agreement, ordinarily 20 years, and accounting records must be retained for three years after submission of the final expenditure report.

Activities and expected outcomes

This project expands an existing fuel farm by adding five 40,000-gallon fuel tanks to expand availability of an existing fuel type to assist the airport to be as self-sustaining as possible by generating revenue. This project is allowable under the infrastructure investment and jobs act's expanded eligibility. Intended beneficiary: this grant will provide federal funding for airports associated with lexington, kentucky.