Gary/Chicago International Airport just locked in a $10 million federal boost to replace its aging air traffic control tower, a move airport leaders say will sharpen safety, improve visibility over expanding cargo ramps and runways, and keep pace with the region’s growing freight and business traffic. The award is the latest milestone in a years-long effort to turn the Lake County airfield into a serious regional cargo and corporate aviation player.
The money shows up on the Federal Aviation Administration’s FY2026 Contract Tower selections, which list a $10,000,000 recommendation for Gary to replace its sponsor-owned contract tower, according to the Federal Aviation Administration. The FAA notes the recommended funding would support construction that brings the tower into ADA compliance, fixes line-of-sight issues, and adds energy-efficiency upgrades. The Contract Tower Competitive Grant Program, part of the IIJA, is aimed at modernizing older towers at airports staffed by contract controllers, per the Federal Aviation Administration.
New Tower: Taller, Digital, and Built For Growth
The airport has said the current tower, built in 1972, is set to be replaced by a cab about 50 feet taller and equipped with upgraded radar and modern communications systems, according to the airport’s press materials. The authority has also pointed to a separate $1.7 million FAA grant in 2024 that covered design and engineering for the new tower and completed required siting work. With both design and construction money in hand, airport officials say the project should move faster and deliver a tower that better matches rising activity at the field, per Gary/Chicago International Airport.
Jobs, Timing, and What Officials Are Saying
Construction is expected to start later this summer and, officials told the Chicago Tribune, wrap in 2027. The build phase is projected to employ roughly 115 skilled-trade workers. “This is a significant step forward for the economic future of Gary and northwest Indiana,” Rep. Frank Mrvan told the paper. Local leaders say the project is both a safety upgrade and a capacity play, lining up with a slate of recent investments on and around the airfield.
How The Tower Fits Into Gary’s Cargo Push
The tower overhaul lands as GCIA builds out the apron and cargo infrastructure. Airport materials and local coverage point to recent commitments of state and airport authority funds to expand cargo ramps and apron space. The city also celebrated a groundbreaking in October 2025 for a $60 million FedEx distribution center near the airport, a project the mayor and Rep. Mrvan say will create hundreds of jobs, according to the City of Gary.
Now that the FAA’s recommendation is public, the airport authority will move through procurement, permitting, and construction contracting before shovels hit the ground. For residents and local contractors, the immediate focus is on when work starts and who gets hired. Airport leaders say they will share more specifics as contracts are awarded and timelines are locked in.
