Federal funding now tops $66.5 million, covering more than 70% of the $93.6 million project
Palm Springs International Airport (PSP) has secured another $5.5 million in federal funding for its new outbound baggage handling system, bringing the total federal investment in the approximately $93.6 million project to more than $66.5 million — more than 70% of the project’s total cost.
The latest award comes through the Federal Aviation Administration’s (FAA) Airport Infrastructure Grant program and represents the final year of AIG funding for the project. The $5,501,525 grant will support the final phase of the baggage system, including software integration, commissioning, testing, construction administration, and project management.
Securing federal funding for major infrastructure projects has been a key priority for PSP, bringing significant outside investment into Palm Springs and the Coachella Valley while preserving airport resources for other critical needs.
PSP funds capital improvements through competitive awards and other federal funding programs, along with revenues generated by the airport. No city general fund or local taxpayer dollars are used for these projects.
PSP also credits strong partnerships in advancing the project, including support from Congressman Ken Calvert’s office, continued collaboration with the FAA and TSA, and support from the Palm Springs City Council and volunteer Airport Commissioners.
“This investment is ultimately about making the travel experience at PSP better for our passengers,” said Victoria Carpenter, C.M., Interim Director of Aviation. “Modernizing this critical infrastructure will allow us to move checked bags faster, more accurately and more reliably while preparing PSP for continued growth. For our passengers, that means a smoother journey and greater confidence that their luggage will arrive when they do.”
The outbound baggage handling system is the behind-the-scenes infrastructure that moves checked luggage from airline ticket counters through security screening and sorting before bags are delivered to airlines for loading onto departing aircraft.
The project will expand PSP’s outbound baggage area and increase capacity to accommodate growing luggage volumes. The new system is designed to support projected passenger growth over the next 15 years while meeting the latest TSA security standards.
PSP has secured federal support for the project through multiple FAA and Transportation Security Administration programs, along with a $3 million federal earmark. The project’s current funding plan includes:
- $66.55 million in federal funding
- $14.4 million in Passenger Facility Charge revenue
- $12.6 million in airport funds
Work is already underway, with construction activity advancing while PSP maintains its existing baggage operation. The project is expected to be completed in late 2028.
The baggage handling system is a major component of Progress PSP, the airport’s capital improvement initiative focused on modernizing critical infrastructure, improving the passenger experience and preparing PSP for future growth.
To learn more, visit ProgressPSP.com.
