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

Overview

Updated Oct 10

The Federal Aviation Administration has committed $90 million to build Concourse B at Austin-Bergstrom International Airport, the largest award in the five-year history of its Airport Terminal Program. The money funds 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.

On Sept. 29, the airport broke ground on Concourse M, a six-gate reliever concourse to keep traffic moving while the main build proceeds. It could open as early as 2028. Concourse B is expected in the early 2030s, paid for with federal grants, airport revenue bonds, and city cash.

Why it matters

Austin's airport has run over capacity for years; this grant funds 26 new gates and tests whether federal money keeps 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.

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.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Ghizlane Badawi

Chief Executive, Austin-Bergstrom International Airport

Leading the Journey With AUS expansion program

Bryan Bedford

Administrator, Federal Aviation Administration

Oversees FAA infrastructure funding programs

Lloyd Doggett

U.S. Representative, Texas's 37th District

Led bipartisan push for AUS federal funding

Jeff Pearse

Chief Executive, Lonestar Airport Holdings

Won $90 million court award in South Terminal condemnation fight

Kirk Watson

Mayor, City of Austin

Backed the Concourse M project at its groundbreaking

Organizations Involved

City of Austin Aviation Department

City agency

Grant recipient and program owner

Owns and operates Austin-Bergstrom and is the named recipient of the $90 million FAA grant.

Federal Aviation Administration (FAA)

Federal Agency

Grantor of Airport Terminal Program funds

Awards competitive terminal grants created by the 2021 Infrastructure Investment and Jobs Act.

Austin-Bergstrom International Airport

Airport

Site of the expansion

The airport at the center of the Journey With AUS expansion program.

Timeline

March 2016 September 2026

7 events Latest: September 29th, 2026 · 1 month ago

Tap a bar to jump to that date

September 2026
Groundbreaking for Concourse M
Latest Construction

Airport breaks ground on the six-gate reliever concourse that will keep gates available while Concourse B is built. Target opening is as early as 2028.
September 29th, 2026
FAA awards $90M for Concourse B
Funding

FAA awards $90 million for Concourse B construction, phase two.
September 17th, 2026
2026
FAA issues $108M letter of intent
Funding

FAA issues $108 million letter of intent for new taxiways at AUS.
2026
June 2024
Bipartisan letter backs AUS funding
Political

Texas representatives sign bipartisan letter backing federal AUS funding.
June 2024
February 2023
Court orders $90M payment for South Terminal
Legal

Travis County court orders Austin to pay Lonestar $90 million for the South Terminal.
February 7th, 2023
2022
FAA terminal grant program begins
Program Launch

FAA's Airport Terminal Program begins giving about $1 billion a year.
2022
March 2016
City leases South Terminal to Lonestar
Contract

City signs 40-year lease with Lonestar to run the South Terminal.
March 2016

Scenarios

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.

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.

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.

Concourse M Opens by 2028, Keeping Gates Available

Likely Resolves by Q1 2028

Discussed by: Airport officials, who target an opening as early as 2028

Concourse M opens as early as 2028, keeping six gates available while Concourse B construction and Concourse A remodeling proceed. The project was scaled down from an earlier 84,500-square-foot plan to about 37,000 square feet.

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.