Palm Springs airport receives $21.55 million federal grant for baggage system upgrade

Palm Springs International Airport (PSP) has been awarded $21.55 million in federal funding to construct a new, expanded checked baggage handling system as the facility experiences sustained record demand.

U.S. Senators Alex Padilla and Adam Schiff announced the funding Thursday as part of $158.4 million distributed to 72 California airports through the Federal Aviation Administration’s Airport Infrastructure Grant program.

The baggage system project represents the airport’s top near-term priority as passenger volumes reach all-time highs. PSP has recorded five record months in 2025, with July passenger traffic increasing 11% compared to the same month 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.”

The new system will modernize how checked luggage is screened and sorted at PSP, delivering improved efficiency, speed and capacity while meeting current TSA security standards. The upgraded facility is designed to scale with the airport’s projected growth over the next 15 years.

The funding addresses ongoing operational challenges at PSP, including issues with a previous $7 million baggage system that experienced problems handling the airport’s increasing passenger volumes. Airport staff previously had to move luggage manually when the automated system became overwhelmed during peak travel periods.

PSP previously secured $6 million toward the baggage system project through the FAA’s competitive Airport Terminals Program grant last year. Combined with the new award, federal investment in the project totals more than $27 million of the program’s $86 million cost.

The entire project will be funded through federal grants and future airport revenues, allowing completion without relying on local taxpayers while maintaining stable airline costs.

Phase 1 construction, funded by the new grant, will include site enabling work, building expansion and electrical systems to support the upgraded facility. Construction is expected to begin this year, with full project completion scheduled for 2028.

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