Officials at Northwest Arkansas National Airport (XNA) are pursuing a federal loan under the Transportation Infrastructure Finance and Innovation Act (TIFIA) to support a major terminal expansion, citing rapid regional growth and increasing passenger numbers.
TIFIA, part of the $1.2 trillion infrastructure law signed in 2021, offers low-interest, long-term loans for projects deemed regionally or nationally significant. The program has historically funded initiatives such as ferry projects in New York and transit extensions in Texas, but if approved, XNA’s loan would be the first in the nation for an airport terminal expansion, according to Morteza Farajian, executive director of the U.S. Department of Transportation’s Build America Bureau, which oversees the program.
Farajian met with airport officials and U.S. Congressman Steve Womack on Wednesday to discuss the loan, which could carry a rural interest rate of about 2.25% to 2.5%, significantly below standard market rates. Speaking to reporters after the meeting, Farajian noted that the reduced interest rate could result in significant savings for XNA by offsetting construction cost escalations that often occur with project delays. While specific numbers were not disclosed, Farajian estimated the savings in financing costs could reach tens of millions of dollars.
Airport CEO Aaron Burkes stated that the loan would fund a new concourse project with construction expected to begin this fall. Bids for the $80 million to $120 million project, which will add seven new gates to accommodate growing demand, are due next week. Burkes anticipates the loan could reduce costs by approximately $30 million. "It’s a tremendous savings for us and will allow us to get these projects done and funded a little faster than we would otherwise be able to," he said.
In addition to the terminal expansion, XNA plans to apply for another TIFIA loan next year to build a parking garage dedicated to rental car operations. These projects are part of a long-term growth strategy, as the airport works through a $620 million infrastructure plan outlined in 2021. Burkes noted that the airport is not yet halfway through the identified improvements.
Passenger traffic at XNA reflects the urgency of these projects. During the first half of 2026, nearly 32,000 more passengers passed through the airport compared to the same period in 2025, airport officials announced in July.
Congressman Womack, who chairs the Transportation, Housing and Urban Development Subcommittee, commended the airport’s forward-looking approach. "They’re projecting this airport beyond the current line of sight to be able to see what a generation or two from now this place is going to look like," Womack said. "Getting ahead of those projects early on, getting ahead of that change, I think is very important."
TIFIA loans can finance up to 49% of eligible project costs, and their flexible repayment terms make them attractive for large-scale infrastructure initiatives. Airport officials expect a decision on their application in the coming months.