Construction Law Blog

New York and Florida are pouring money into Airport Construction. Why?

Airports today are no longer just runways and ticket counters — they’re massive nodes of commerce, logistics, and transportation that shape regional economies. That’s why states such as New York and Florida have committed large sums to airport construction and modernization: rising passenger and cargo demand, federal funding opportunities, global competition for air traffic and tourism, and the local economic development that modern airports enable. Below I explain the main drivers, how airport projects interact with surrounding infrastructure, the key pros and cons, and examples from New York and Florida to ground the discussion.

Why the investment wave?

  1. Demand & capacity — passenger numbers and air cargo volumes have rebounded and grown, pressuring older terminals and airfields to expand.
  2. Federal funding windows — programs in the Infrastructure Investment and Jobs Act (IIJA) and FAA Airport Infrastructure Grant (AIG) provide billions that make large projects feasible. Federal Aviation Administration+1
  3. Economic development & jobs — airports attract businesses, hotels, logistics centers, and tourists; they’re visible ways for states to signal competitiveness. International Airport ReviewPort Authority NY/NJ
  4. Modernization & resilience goals — new terminals, improved baggage and security technology, sustainability measures, and resilience to climate impacts drive capital spending. Federal Aviation AdministrationAxios

Surrounding infrastructure: the full system that must be built or upgraded

An airport project rarely stands alone. The most important adjacent systems include:

  • Roadways and drop-off/pick-up zones. New terminals increase vehicle trips; roadway redesigns, dedicated curb lanes, and staging areas are necessary to prevent gridlock. (Example: JFK/JFK transformation plans include large roadway reconfigurations.) Port Authority Buildswww.usa.skanska.com
  • Public transit links. Rail, subway, or bus rapid transit connections multiply the passenger capacity of an airport and reduce car dependence. For many NYC-area projects, adding or improving rail/transit access is a central goal. Port Authority NY/NJ
  • Baggage handling / terminal systems. Modern bag systems, secure staging, and passenger flow design reduce delays and enhance throughput — but are expensive and complex to build. Federal Aviation Administration
  • Airfield pavement, taxiways, and lighting. Runway and taxiway rehabilitation keeps safety standards and capacity aligned with increased operations; many FAA grants explicitly fund these projects. Federal Aviation Administration
  • Cargo & logistics nodes. Airports expanding cargo capacity must link to highways, intermodal yards, and warehousing to realize economic benefits (especially in Florida where air cargo is a major growth area). Miami-Dade CountyMiami Airport News
  • Utilities & resilience infrastructure. Water, sewer, stormwater mitigation, and climate adaptation (e.g., flood protection) are frequently required — particularly in coastal states like New York and Florida. Axios

These surrounding investments often equal or exceed the cost of the terminal itself; planners must coordinate across state DOTs, transit agencies, local governments, and port authorities.

Pros — what states expect to gain

  • Jobs and multiplier effects. Construction creates short-term jobs; airports generate long-term employment in airlines, concessions, logistics, and related industries. Large redevelopment programs often promise thousands of jobs. Port Authority NY/NJInternational Airport Review
  • Attracting business and tourism. Better airport capacity and passenger experience help attract conventions, corporate relocations, and tourists — a big driver in Florida’s growth strategy. Miami Airport News
  • Improved safety, efficiency, and customer experience. New terminals reduce delays, improve security flows, and increase capacity for future demand. www.usa.skanska.com
  • Federal cost-sharing. IIJA/AIG and similar programs provide substantial grants and incentives; leveraging federal dollars makes big projects politically and financially viable. Federal Aviation AdministrationTransportation Department

Cons and risks — what to watch for

  • Huge capital costs and financing risk. Even with federal grants, airports rely on bonds, passenger facility charges, and private investment — which can strain budgets if forecasts are missed. (Large projects like JFK and LaGuardia involve tens of billions in combined public/private funds.) Port Authority NY/NJwww.usa.skanska.com
  • Construction disruption. Phased construction at operating airports creates noise, traffic impacts, and temporary capacity constraints that frustrate travelers and neighbors. Port Authority Builds
  • Community impacts: noise, environmental justice, and land use. Surrounding neighborhoods can face more noise, pollution, and displacement pressure; proper mitigation and community engagement are essential. International Airport Review
  • Climate and resilience exposure. Coastal airports (e.g., in NYC and Florida) face sea-level rise, storm surge and extreme-heat considerations; building resilience adds cost and complexity. Axios
  • Opportunity cost. Dollars spent on mega-airport projects are not available for other priorities (housing, transit elsewhere, education) — political tradeoffs must be explicit.

The Airport Construction Boom – New York and Florida

New York: big transformational programs

The Port Authority’s multi-billion dollar programs at JFK, LaGuardia, and Newark have been framed as regional economic engines — combining new terminals, simplified roadway networks, transit access studies, and contracts aimed at minority and women-owned businesses. These projects promise thousands of jobs and major improvements in passenger experience, but they also represent long timelines, big public-private financing structures, and the need to manage construction impacts while operations continue. Port Authority NY/NJwww.usa.skanska.com

Florida: expanding to capture tourism & cargo growth

Miami International’s “Future-Ready” plan and recent approvals for new concourses reflect Florida’s strategy to scale capacity for both passengers and air cargo as tourism and trade grow. MIA’s Modernization in Action plan and the recently approved Concourse K investment are current examples of that strategy. Miami Airport NewsMiami Airport

Practical considerations for planners and policymakers

  1. Coordinate early across agencies. Transit, highways, ports, utilities, and regional planning agencies must be at the table from day one. Port Authority NY/NJ
  2. Stress-test demand forecasts. Build flexibility so capacity can scale with demand rather than lock in oversized fixed assets.
  3. Prioritize community mitigation and workforce development. Noise buffers, air quality mitigation, affordable housing policies, and local hiring commitments reduce social friction. International Airport Review
  4. Design for resilience. Incorporate flood protection, redundant power, and cooling/heat mitigation into the capital program. Axios

Airport Construction Funding

Airport projects typically combine multiple funding sources. Below are the major mechanisms planners use, with short descriptions and examples.

  1. Federal grants (FAA programs, IIJA/AIG, AIP)
  • Airport Infrastructure Grant (AIG) program created under the IIJA provides large, targeted funding over multiple years for airport modernization projects (runways, taxiways, terminals, transit connections, sustainability). The FAA’s AIG program and the established Airport Improvement Program (AIP) are central federal sources for airports. These grants reduce the local funding burden and enable projects that might otherwise be unaffordable. Federal Aviation Administration+1
  1. Passenger Facility Charges (PFCs)
  • Airports levy per-passenger fees (PFCs) that can be used to repay bonds or pay for capital projects. For big redevelopment programs, projected PFC revenue is often a core part of the financing plan.
  1. Municipal / state funding and bonds
  • States, counties, and local authorities issue general obligation bonds or revenue bonds, or allocate capital appropriations to cover portions of large projects. Example: Miami-Dade County approved the Concourse K project funding as part of MIA’s master modernization plan. Miami-Dade CountyMiami Airport News
  1. Public-Private Partnerships (P3s)
  • P3s bundle design, construction, financing and sometimes operations into a single agreement with a private partner (e.g., LaGuardia’s Terminal B partnership model). P3s can transfer some risk and attract private capital, but create long-term contractual obligations and require careful risk allocation. www.usa.skanska.comEngineering News-Record
  1. Airport / authority reserves and revenue
  • Airport operating revenue (parking, concessions, airline leases) is often used to service debt or pay project costs. Strong revenue projections help secure better bond terms.
  1. Targeted federal rounds and discretionary grants
  • Periodic federal award rounds (e.g., competitive grants announced by DOT/FAA under IIJA) supply additional funding for specific projects; several hundreds of millions have been allocated across dozens of airports in recent rounds. Transportation DepartmentAP News

Construction company bids (Public Information)

Large airport projects are typically procured through public bidding or negotiated P3 processes. Here’s how the process works and where to find bid and award records — plus a few recent, concrete examples.

How bidding & procurement usually works

  1. Solicitation / RFP / IFB published. The airport authority (Port Authority, county, state DOT) publishes Request for Proposals (RFP) or Invitation for Bids (IFB) on its procurement portal and often on aggregator sites. These documents include scope, technical requirements, MWBE goals, bonding, insurance, and submission deadlines. Port Authority NY/NJ
  2. Pre-bid conferences and addenda. Potential bidders attend briefings; addenda clarify or change requirements.
  3. Submission and public opening (for many public agencies). Bids are submitted and, depending on rules, opened publicly. Evaluation includes technical compliance, price, safety/quality history, DBE/MWBE participation, and past performance.
  4. Award and contract publication. The award is posted publicly (award lists, press releases) and contracts are often available for download or inspection. Agencies maintain award lists and contract pages. corpinfo.panynj.govDemandStar

Where to find bid documents and award lists

Recent / concrete examples (publicly announced awards)

  • JFK Central Terminal Roadways & Ground Transportation Center — Skanska-led JV
    A Skanska-led joint venture was publicly announced as the awardee for the reconstruction of JFK’s central terminal roadways and ground transportation center in a contract worth in the ballpark of $1.24 billion. This is a public award posted in company press releases and Port Authority documents. www.usa.skanska.comPort Authority Builds
  • LaGuardia Terminal B — P3 award & construction partners
    LaGuardia’s Terminal B was delivered under an innovative public-private partnership with LaGuardia Gateway Partners; contractors and builders involved in the large CTB redevelopment are documented in Port Authority and partner pages. The P3 included design-build-finance-operate elements that were competitively procured. www.usa.skanska.comEngineering News-Record
  • Miami International Airport Concourse K — Lemartec-NV2A JV
    Miami-Dade County and Miami International announced the award of the general contractor contract for the Concourse K expansion (approx. $600.6 million project) to the Lemartec-NV2A Joint Venture; award details were published in the airport press release and local county notices. Miami Airport NewsMiami Airport
  • JFK MWBE contract awards
    The JFK transformation has publicly reported record MWBE contract dollars (reported ~$2.3 billion in awards to MWBE firms) as contracts have been awarded in phases; these award lists and press releases are available through the Port Authority and press coverage. International Airport ReviewPort Authority NY/NJ

What bidders should expect in big airport RFPs

  • Strict MWBE / DBE participation goals in many projects (especially NY).
  • High insurance, bonding and safety requirements.
  • Detailed schedule & phasing constraints because construction will occur on an active airport.
  • Community benefits and workforce commitments (local hire, apprenticeship targets).

Investing in airport construction is a high-stakes lever for economic growth: it can create jobs, attract global business, and modernize an area’s transportation footprint. States like New York and Florida are betting that modern airports — paired with roads, transit, cargo infrastructure, and resilience upgrades — will pay off. But the benefits are neither automatic nor cost-free: careful coordination, community engagement, realistic finance plans, and climate-aware design are what separate transformative projects from expensive liabilities. The added sections above explain how these projects are funded and how construction contracts are bid and awarded — with real, publicly announced examples showing how the procurement process plays out in practice.

John Caravella, Esq

John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.

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