PICAYUNE — With funding from the Infrastructure Investment and Jobs Act set to expire in 2026, Mississippi airports are rushing to lock in federal dollars before time runs out. 

The funding, which began flowing in 2022, offers airports across the country the chance to tackle long-delayed improvements. But if the money isn’t obligated by the end of fiscal year 2026, it disappears — unused funds are forfeited and returned to the federal government.   

Josh Stubbs, director of aeronautics and rails at the Mississippi Department of Transportation, said that’s put pressure on local airports to launch projects now or risk losing out. 

“We’re in year four (of the law),” Stubbs said. “We’re getting to that spot where they have to use it or lose it—and that’s what they’re starting to do.” 

Airports have long relied on the Federal Aviation Administration’s Airport Improvement Program for essential maintenance. Those dollars are restricted to projects that enhance safety, capacity, security or environmental compliance — typically limited to airfield work like runway paving, taxiways or lighting. Projects must meet federal environmental and procurement standards and be justified based on civil aviation demand.

But the bipartisan law gives airports more flexibility. While it still requires FAA approval, the law allows dollars to be spent on revenue-generating projects like fuel tanks and hangars. 

“When you try to use some (Airport Improvement Program) funding for a revenue producer, you’ve got some restrictions,” he said. “(With) the infrastructure law, both of those go away.” 

The result, Stubbs said, is more project proposals than MDOT has seen in recent years. As the deadline approaches, the state anticipates contributing about $5 million in matching funds to help local airports complete their projects. 

Picayune upgrades focus on economic growth 

In Picayune, the federal funding is being used to repave cracked runway asphalt and upgrade outdated electrical systems at the city’s municipal airport. 

Devin Hedgepeth, a design engineer at Dungan Engineering in Picayune, said the project costs $2.697 million, with only 5% — about $160,000 — coming from local funds. 

“Five percent for that big of a buck — it’s a pivotal project and just a small token to pay for such a large project,” Hedgepeth said. 

Construction began in March and is expected to keep the runway closed through October. 

City Manager Harvey Miller said Picayune’s airport, once used primarily for recreation, has become an essential tool for economic development. He said corporate visitors from companies such as Walmart and Applebee’s frequently fly into the facility, and its condition can influence business growth.  

“It’s all changed for the good — now we think it’s a tremendous economic tool,” he said. “If we are expected to grow economically, you got to have a fine facility.” 

A 2013 study from MDOT found airports across the state supported more than 20,000 jobs and generated more than $2.5 billion in economic activity. In Picayune alone, the airport accounted for 230 jobs and more than $51 million in output.  

Chevron headquarters its aviation operations at the Picayune airport, using helicopters to transport crews offshore to platforms in the Gulf. Jose Jaramillo, the company’s aircraft operations manager, said the airport has been a critical hub during severe weather events — including Hurricane Katrina — when airports closer to the coastline were inoperable.  

“Here in Picayune, we do all our heavy maintenance, all of the major inspections will happen here,” he said.  

Jaramillo said further improvements would allow the airport to bring in more business — and more revenue.

“If you expand the airport, you give the airport more of a capability to accept bigger aircraft,” he said. “The more fuel they use, the more revenue for the airport, more revenue for the city.”

Ty Gill, owner of Black Star Helicopter in Picayune — a mechanics company that supports agricultural aviation — said aviation infrastructure is essential to growing local opportunity. 

“We hire economic development people that would go out and solicit businesses … and the airport is the first thing that a company sees when it comes to your community,” Gill said. “Progress feeds progress. That’s how it works.” 

Poplarville pushes for long-term self-sufficiency 

In nearby Poplarville, the Poplarville-Pearl River County Airport is also investing in upgrades — but with an eye toward financial independence.

Federal rules require that certain infrastructure investments be revenue-producing, such as the construction of leasable hangars, until the airport meets FAA design standards. That requirement prompted the Poplarville airport to renovate its runway and upgrade lighting earlier this year. The project came with a 95-5 match — totaling $160,000 for the local commitment, which was split between the airport and Pearl River County.

Now, the airport board plans to construct five new hangars using a $940,000 federal grant. MDOT is contributing $50,000 to the project. But with the funding deadline approaching, the board is temporarily borrowing $150,000 from the county to begin construction, with plans to repay the loan using next fiscal year’s federal funds.

The airport is operated entirely by volunteers and serves mostly recreational aircraft. Board member Darryl Fuller said the hangars will help reduce the airport’s reliance on taxpayer support.

“We want this facility to be standalone. We don’t want to keep going to the city and the county with our hands out saying, ‘We need $10,000,’” Fuller said. “The county has these bridges that are being condemned … and I know for a fact that I sure would like to the city to pave the street in front of our house. Besides that, if I’m using the airport, I should pay for the upkeep of the airport.”

Fuller said the hangars are expected to generate about $20,000 in annual revenue, which could help fund future improvements. One such project — extending the runway to accommodate larger aircraft — is being encouraged by the FAA.

With aviation fueling more than $2.5 billion in economic activity across Mississippi, airport leaders say these projects aren’t just improvements — they’re investments in the state’s future. With the clock ticking on federal funding, local leaders said they hope today’s investments will keep their airports — and their communities — ready for whatever comes next.