Word on the Runway: Building up and up

For decades, aviation’s vertical infrastructure – terminals, towers, and other above-ground facilities – received little to no federal support. That changed with the 2021 enactment of the Infrastructure Investment and Jobs Act (IIJA). This sudden injection of funds into the aviation and transportation industries has the potential to drive progress and innovation in the type and number of projects developed across the industry.

To gain insight into the future of vertical infrastructure funding, we spoke with industry experts Karl David, Senior Cost Specialist at Connico and Christopher Donahue, AIA LEED AP, Founding Principal at Abstract Group. Both shared a key trend or prediction of what they see shaping the future of vertical infrastructure funding in the aviation industry following the enactment of the IIJA.

Their insights are critical as we continue navigating the evolving industry landscape. In the latest installment of Connico’s Word on the Runway series, we asked:

What was your initial reaction to the decision to fund vertical infrastructure through the Infrastructure Investment and Jobs Act (IIJA)? How have you seen that decision ripple through the industry, and do you think this trend and level of funding will continue?

Here’s what our experts said.

Karl David
Senior Cost Specialist, Connico
The government’s decision to fund vertical infrastructure is an investment in “building up taller” versus “taking up space.” When funding opened under the IIJA, federal investment surged in all areas of infrastructure, particularly in roadways, bridges, and airports. While this shift is bringing national and regional improvements, it hasn’t directly impacted infrastructure at the local level. Meanwhile, Connico’s work with vertical infrastructure in this era of funding has seen great success. For instance, the success of Oakland San Francisco Bay Airport’s (OAK) terminal study encompassed the modernization of two terminals, along with the design of a new terminal. OAK is located in a higher-end market where infrastructure costs are steeper than those on the East Coast. Additionally, Connico needed to account for the unknowns of tariffs and the associated market volatility.

One positive is that the funding reaches more rural areas as opposed to metropolises that get all the attention; the Raleighs, the Charlestons, and similar places can upgrade and keep up with their growth. However, the current trend and level of funds are likely to taper off in the future if a new emphasis is placed on investment in other areas like colleges or agriculture, which could impact hospitals, airports, and other major facilities. Historical patterns show similar shifts, like when investment moved away from roadways and bridges in the 2000s to focus on schools and colleges, leading to failing roadways and collapsing bridges.

It’s also important to consider how a major national event could quickly redirect priorities, reducing infrastructure funding for 10-15 years. For example, environmental factors, like California wildfires that destroy massive amounts of lumber, can also drive up material costs and strain budgets. Cuts like this would ripple through the economy, affecting not only large projects but also small business loans and the local businesses that benefit from them. This trend of funding could also be affected by uncertainty tied to political shifts, tariffs, and global supply chains. There are parallels between today and what our industry experienced in the 1970s, when embargoes, steel shortages, and economic volatility also made headlines. While this cycle of investment is complex and could become vulnerable to many forces, our work at Connico is focused on providing consistency amid uncertainty through proactively budgeting for tariffs and market fluctuations.

Christopher Donahue, AIA LEED AP
Founding Principal, Abstract Group
My initial reaction to the Infrastructure Investment and Jobs Act (IIJA) was optimism. Seeing $25 billion directed toward aviation infrastructure felt like a long-overdue commitment to upgrade aging facilities that are essential to the nation’s economy. This infusion of funding offered a much-needed push to modernize U.S. airports, especially after years of operational challenges. With U.S. airports supporting over 12 million jobs and generating $1.8 trillion in annual economic output, this investment serves as both a catch-up effort and a key reminder of the critical role aviation plays in everyday life.

At Abstract Group, we’ve seen firsthand how the IIJA has accelerated project delivery. Airports that once delayed or scaled back capital improvements are moving ahead, often with larger and more ambitious programs than before. But with acceleration comes pressure: projects tied to annual federal funding cycles must meet strict deadlines, compressing design schedules and creating urgency around coordination. What might have taken a year to move through early planning and review is now being compressed into a fraction of that time. Our firm’s approach has shifted accordingly to ensure airports don’t miss out on this opportunity. In reality, this federal support is overdue and not a long-term solution. Over the next five years, nearly $174 billion in investment will be needed – far exceeding the $6 billion annual total from passenger facility charges and Airport Improvement Program funding, which has lost half of its value over 25 years of inflation.

Still, the ripple effects of the IIJA have been significant. One example is the renovation of Pittsburgh International Airport’s (PIT) airside core and concourses. With IIJA support, the project expanded beyond its original scope to include both passenger-facing upgrades and critical back-of-house systems. It’s a clear demonstration of how federal investment can simultaneously enhance the traveler experience and strengthen the backbone of airport operations. By phasing the work in alignment with IIJA cycles, we helped the airport maximize the impact of federal support while advancing its vision of a more modern, resilient terminal.

It remains to be seen whether current investment levels will continue or revert to historical norms. Sustained investment will be essential if the U.S. wants to lead the way in building the aviation infrastructure of the future. Overall, the IIJA has created real momentum in the aviation industry by removing roadblocks, streamlining approvals, and giving airports the confidence to pursue transformative projects. While I remain hopeful that federal leaders will recognize the importance of sustained investment, this funding has already proven how impactful aviation infrastructure is to business, communities, and the broader economy.

As experts in consulting services, Connico is focused on providing extraordinary results for our clients. Our skilled team of planners, architects, engineers, and consultants has transformed airports, roadways, and communities across the country.

Have a question for our Word on the Runway series or want to connect with our team? Get in touch with us!