Palm Springs International Airport (PSP) has secured $21.55 million in federal funding from the Federal Aviation Administration (FAA) to advance construction of its new, expanded checked baggage handling system. The project is the airport’s highest near-term priority as it works to meet sustained record demand.
The funding was announced Thursday by U.S. Senators Alex Padilla and Adam Schiff as part of $158.4 million awarded to 72 California airports. This $21.55 million comes through the FAA’s Airport Infrastructure Grant program, which allocates funding to U.S. airports for infrastructure needs.
PSP is also competing for additional federal dollars. Last year, the airport was one of only a limited number of airports nationwide to win a competitive FAA Airport Terminals Program grant, receiving $6 million toward the baggage system project. Together, these awards represent more than $27 million in federal investment so far toward the $86 million program — a project that will be funded entirely through federal grants and future airport revenues.
With traveler volumes reaching all-time highs, the new baggage handling system will modernize how checked luggage is screened and sorted at PSP. The system will deliver next-generation efficiency, speed, and capacity — preparing to scale with the airport’s projected growth over the next 15 years and meeting the latest TSA security standards. PSP has already logged five record months in 2025, with July alone up 11% compared to last year.
“This is a major step forward in modernizing PSP for the future,” said Harry Barrett, Jr., Executive Director of Aviation at Palm Springs International Airport. “We’re seeing unprecedented passenger growth, and this funding allows us to invest in critical infrastructure to meet that demand while improving the travel experience for our passengers and partners.”
Phase 1 of the project, funded by this new award, will include site enabling work, building expansion, and proposed electrical systems to support the upgraded facility. Construction is expected to begin in 2025, with full project completion slated for 2028.
By securing these grants, PSP is ensuring millions of federal dollars flow into the Coachella Valley to support airport growth. This strategy allows the airport to complete major projects without relying on local taxpayers, while keeping airline costs stable and supporting continued air service development.
The baggage system upgrade is a core component of Progress PSP — the Airport’s capital improvement initiative focused on expanding capacity, modernizing infrastructure, and improving the overall travel experience.
To learn more, visitProgressPSP.com.
