PSP Lands $21.55 Million Federal Grant to Modernize Baggage System

Palm Springs International Airport (PSP) is packing its bags for the future with a major boost in federal funding. The airport has secured a $21.55 million grant from the Federal Aviation Administration to push forward construction of its long-awaited baggage handling system upgrade—its top near-term priority as passenger demand continues to soar.

The award, announced Thursday by U.S. Senators Alex Padilla and Adam Schiff, is part of $158.4 million funneled into 72 California airports. PSP’s slice of the pie comes from the FAA’s Airport Infrastructure Grant program, which funds critical airport improvements across the country.

This is not PSP’s first federal windfall. Last year, the airport secured a competitive $6 million Airport Terminals Program grant for the same project, bringing total federal investment in the new baggage system to more than $27 million. The full $86 million cost will be covered through additional federal grants and future airport revenues, meaning local taxpayers won’t be footing the bill.

The stakes are high. With PSP breaking traffic records—July was up 11% over last year, marking its fifth record-setting month in 2025—the new system will be designed to handle the crush of passengers. It promises faster screening, smarter sorting, and compliance with the latest TSA security standards, ensuring the airport can keep pace with its projected 15-year growth curve.

“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 one of construction, made possible by this grant, will kick off in 2025 with site prep, building expansion, and new electrical systems. Full completion is targeted for 2028, with the upgraded system expected to become the backbone of PSP’s Progress PSP initiative—a sweeping modernization program aimed at expanding capacity, upgrading infrastructure, and elevating the travel experience.

For locals, the news carries a simple message: PSP is making sure the millions flowing in from Washington stay right here in the Coachella Valley, fueling growth without tapping the wallets of area taxpayers.