Sachin Walls
LaGuardia Airport, located in Queens, New York City, has undergone a major transformation in recent years, addressing criticisms of its outdated facilities, inefficient operations, and poor customer service. The $8 billion redevelopment project, led by Governor Kathy Hochul and the Port Authority of New York and New Jersey, aimed to create a world-class airport experience with modern amenities, improved operations, and enhanced aesthetics. The project was funded through a mix of public and private sources, with two-thirds of the funding coming from private financing and existing passenger fees. Notably, a record-setting $2 billion in contracts were awarded to Minority- and Women-Owned Business Enterprises, reflecting a commitment to diversity and equity in the construction process. The transformation of LaGuardia Airport, including the construction of new terminals, roadways, and improved transit connections, has been hailed as a successful model for airport redevelopment, improving the travel experience for millions of passengers.
| Characteristics | Values |
|---|---|
| Total cost of the project | $8 billion |
| Funding from private sources | $6 billion (75% of the total cost) |
| Funding from public sources | $2 billion (25% of the total cost) |
| Funding for MWBE firms | $2 billion |
| Funding for Queens-based local business enterprises | $775 million |
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What You'll Learn
- Private companies and passenger fees fund two-thirds of the 8 billion redevelopment
- billion in contracts awarded to minority and women-owned businesses
- The Port Authority of New York and New Jersey is improving transit connections
- The Federal Aviation Administration is reviewing the AirTrain plan
- The new Terminal B features art, amenities, and a unique water feature
Private companies and passenger fees fund two-thirds of the 8 billion redevelopment
The LaGuardia Airport in East Elmhurst, Queens, New York City, is undergoing a major redevelopment. The airport, which first opened in 1939, has long been criticised for its outdated facilities, poor customer service, and inefficient air operations. Former US Vice President Joe Biden once referred to it as a "third-world country".
In 2015, the Port Authority of New York and New Jersey (PANYNJ) announced a multibillion-dollar reconstruction of the airport's passenger infrastructure. The $8 billion project is being funded by both private and public money, with two-thirds of the cost financed by the Port Authority's two private partners. This is the largest public-private partnership for infrastructure in the United States.
The private companies involved include LaGuardia Gateway Partners, which includes design-build lead Skanska-Walsh, and JLC Infrastructure, a consortium of Magic Johnson Enterprises and Loop Capital, which invested $10 million in equity.
The redevelopment has also seen a significant focus on working with local businesses, with $775 million in contracts awarded to Queens-based companies. Governor Kathy Hochul has also announced a record-setting $2 billion in contracts awarded to minority- and women-owned businesses, the largest participation by these firms in any public-private partnership project in New York State history.
The project has been completed in phases, with Terminal B recognised as the world's best new airport terminal. Terminal B offers a modern travel experience with spacious interiors, floor-to-ceiling windows, a 3,000-car parking garage, convenient pickup facilities, and dual skybridges. The terminal also features best-in-class retail, dining, art, and amenities, including a unique water feature.
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2 billion in contracts awarded to minority and women-owned businesses
In 2015, a plan was unveiled to construct a new LaGuardia Airport, with the goal of creating a world-class, modern airport with improved customer amenities, architecture, gate areas, and a unified terminal system. The $8 billion project is primarily funded through private financing and existing passenger fees.
An important aspect of the LaGuardia redevelopment project has been its focus on awarding contracts to minority and women-owned businesses. Governor Kathy Hochul announced that a record-setting $2 billion in contracts had been awarded to Minority- and Women-Owned Business Enterprises (MWBE), the largest participation by MWBE firms in any public-private partnership project in New York State history. This milestone reflects a commitment to creating a more equitable economy and promoting diversity in the construction industry.
The LaGuardia Redevelopment project has been instrumental in providing critical support to businesses during the COVID-19 pandemic, helping them sustain staffing levels when other opportunities were scarce. The project has also prioritised local businesses, with $775 million in contracts awarded to Queens-based local business enterprises, and a significant proportion of jobs filled by locals, benefiting the community and ensuring that economic benefits remain within the state.
The MWBE initiative has been applauded for breaking down barriers and levelling the playing field, ensuring that minority- and women-owned businesses have access to significant infrastructure projects like the LaGuardia Airport redevelopment. This focus on inclusiveness and diversity has been a key feature of the project, with extensive outreach and training efforts contributing to the success of MWBE firms.
The LaGuardia project sets a precedent for future infrastructure projects, demonstrating the importance of equity and inclusiveness in major construction endeavours. It showcases the positive impact that can be achieved when government and private partners work together to promote diversity and support local communities.
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The Port Authority of New York and New Jersey is improving transit connections
In 2015, the Port Authority announced a multibillion-dollar reconstruction of the airport's passenger infrastructure, which was completed in January 2025. The project included the demolition of the existing central terminal building, the building of temporary facilities, and the design and construction of a new central terminal. The new terminal offers spacious interiors, floor-to-ceiling windows, a new parking garage, and improved pickup facilities for taxis and ride-sharing services.
The Port Authority has also invested in improving transit connections to the airport. The Q70 LaGuardia Link bus line is receiving a $160 million investment to deliver faster, more frequent, and more reliable service. This project will strengthen transit connections between the airport, the subway in Jackson Heights, and the Long Island Rail Road and subway in Woodside.
The reconstruction of LaGuardia Airport has been funded through a mix of public and private financing, with two-thirds of the $8 billion cost coming from the Port Authority's private partners. This includes a record-setting $2 billion in contracts awarded to Minority- and Women-Owned Business Enterprises, demonstrating a commitment to creating a more equal and equitable economy.
The redevelopment of LaGuardia Airport has transformed it into a world-class gateway that reflects the energy, innovation, and diversity of New York. The new terminals offer a modern travel experience with upgraded amenities, inspiring public art, and unique features such as seasonal water shows.
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The Federal Aviation Administration is reviewing the AirTrain plan
The Federal Aviation Administration (FAA) is reviewing the AirTrain plan as part of the LaGuardia airport ground access improvement project. The AirTrain is a proposed $2.1 billion elevated transit connector for LaGuardia Airport in northern Queens. The FAA's modelling has concluded that ridership on the AirTrain would be 30% less than anticipated by the Port Authority of New York and New Jersey (PANYNJ). This would result in a decrease from 4.8 million air passengers to 3.3 million by the year 2026.
The AirTrain plan has been controversial. It has been criticised as too roundabout, slower than the current MTA bus shuttle, and disruptive to the adjacent East Elmhurst neighbourhood. There have also been protests from residents of Briarwood, who fear the Jamaica branch will be extended to LaGuardia. In addition, community groups, including the environmental organisation Riverkeeper, have threatened to sue the FAA over the project, citing a flawed process.
However, proponents of the AirTrain plan argue that it is the best available option for reducing car traffic and that it meshes well with other big transit projects in the area. The Regional Plan Association (RPA), a non-profit civic organisation that conducts research, planning, and advocacy to improve economic opportunity, mobility, and environmental sustainability in the New York City metropolitan region, has also provided written comments in support of the PANYNJ's preferred alternative to build an AirTrain connector. They concluded that other LGA rail transportation alternatives would face even greater physical planning challenges and higher construction costs than the AirTrain.
The FAA's review process has included an environmental review, during which the FAA found the plan to be feasible. The FAA's record of decision allows the PANYNJ to proceed with the 1.5-mile people mover, which will connect the airport with the Metropolitan Transportation Authority's Mets-Willets Point station, serving the No. 7 subway line and the Long Island Rail Road's Port Washington branch.
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The new Terminal B features art, amenities, and a unique water feature
The LaGuardia Airport in East Elmhurst, Queens, New York City, underwent an $8 billion redevelopment—the first complete rebuild of a U.S. airport in over 25 years. The project was funded two-thirds through private financing and existing passenger fees, with the remaining one-third funded by the Port Authority's two private partners. The airport is named after Fiorello H. La Guardia, a former mayor of New York City and a long-time aviation advocate.
The new Terminal B, which was developed by LaGuardia Gateway Partners (LGP), has received numerous awards for its design, unique amenities, sustainability, and customer service. The terminal features spacious interiors, floor-to-ceiling windows, a new 3,000-car parking garage, new covered and convenient pickup facilities, and dual sky bridges above active taxiways.
The Arrivals and Departures Hall, which opened in 2020, offers best-in-class retail, vast dining experiences, and a range of services. The hall also features a show-stopping water feature developed by French company Aquatique Show. This water feature is the centerpiece of Level 4 of the Hall, providing entertainment and tranquility to passengers as they move through the terminal.
Art is integral to Terminal B's design, with a series of permanent installations and stunning public art on display. The terminal also features designated security lines and triple the space for security checks compared to the previous terminal, as well as larger baggage carousels for more efficient baggage pickup.
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Frequently asked questions
The total cost of the redevelopment is $8 billion.
The $8 billion redevelopment is funded by both private and public money. Two-thirds of the funding is from private sources.
Governor Kathy Hochul announced that a record-setting $2 billion in contracts have been awarded to Minority- and Women-Owned Business Enterprises.
The redevelopment aims to create a world-class gateway that reflects the energy, innovation, and diversity of New York. The airport will have new, state-of-the-art terminals, modern roadways, and improved airside operations.
