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A $30 million grant from the Federal Aviation Administration will be used by St. Louis Lambert International Airport to help pay for the construction of a modernized electricity facility that’s central to the airport’s plan to consolidate its two terminals into one.

The grant, which was lauded by public officials on Thursday, will be combined with another $20 million awarded last year for the project.

“It’s what will keep this airport running on a daily basis, keep everything alive, keep all the generators running and also be able to ensure that we’ve got the resilience that we currently have concerns about,” Lambert Director Rhonda Hamm-Niebruegge said.

The renovation of what is known as the central utility plant, which was originally built in 1956, and a new Ameren substation will cost roughly $200 million. The remainder of the project not covered by the federal grants will be paid with bonds issued by Lambert.

Republican Sen. Eric Schmitt and Democratic Rep. Wesley Bell, who both advocated for the FAA grant, described the modernized terminal as needed for the region.

“Not only does it have to do with the future prosperity of this region, it also has to do with the self-esteem of the region,” Schmitt said. “This is a great place in our country, a great American city, a region that has a lot to be proud of and deserves an airport that gets us from here to there that is a showcase for this great part of the country.”

With an improved airport, the federal lawmakers and other regional officials also believe the St. Louis region will be more competitive for businesses to move into the region or expand current operations.

“When companies decide where to expand and create job hubs, the status of the airport is one of the first things that they look at,” Bell said. “Too often, Lambert’s aging infrastructure has been a factor in St. Louis becoming excluded from those conversations. This federal investment helps make St. Louis more competitive by improving and expanding the airport.”

The consolidation St. Louis Lambert International Airport would be centered around Terminal 1, pictured on Thursday.

It’s expected the consolidated terminal, which would branch out of the existing first terminal, would first open in phases by 2028 and would be complete by 2032. The single terminal would consist of 62 gates, expanded concessions, improved roadways and a new parking garage.

The airlines that operate out of Lambert and will largely finance the consolidation have approved the preparation work for the project and roughly 30% of the design. They are expected to give their final decision on the whole project next fall when the design stage will reach 60% completion and a firm price tag will be set.

When introduced in 2022, Lambert officials anticipated the consolidation to cost between $2.8 billion and $3 billion, but that’s expected to increase due to inflation and higher costs for labor and materials.

Eventually, the area officials are hopeful Lambert can one day return to its hub status that it held until the 2000s after American Airlines bought Trans World Airlines.

Hamm-Niebruegge, who’s retiring this fall after leading the airport for 16 years, believes it would take population growth in the area to persuade an airline to make Lambert a hub like those in Chicago, Dallas, New York, Philadelphia or Atlanta.

“They’re seeing continued growth in some of those regions, which is important to the airlines to know not only the local numbers there, but, as we bring connecting traffic through, those costs can be viable,” Hamm-Niebruegge said.

Mayor Cara Spencer said the FAA’s decision to award Lambert the grant is “a vote of confidence” in the airport’s future.

“You can count on the City of St. Louis to be a continued partner in this work — regardless of political lines, regardless of other factionalization that has occurred from time to time in the political landscape,” Spencer said. “We are here to do this work together.”

Boeing named its St. Louis site the headquarters of the Boeing Defense, Space & Security (BDS) business. The move emphasizes company leadership’s commitment to being present and engaged with teammates who are designing, producing and delivering vital defense and space products and capabilities for customers in the U.S. and around the world.

Boeing in the St. Louis region

• Employees: 18,000+
• Highlights:
  • Defense aircraft and munitions production and modernization
  • Advanced fabrication capabilities
  • Services and sustainment support
  • Engineering, Supply Chain, Quality and other capability centers
  • Phantom Works advanced prototyping and Virtual Warfare Centers

Employees in the St. Louis area also support Boeing Global Services, Boeing Commercial Airplanes and enterprise functions.

“It’s important for leaders to be side-by-side with our teammates, listening to their feedback and acting to remove obstacles as we continue to stabilize and strengthen our business,” said Steve Parker, Boeing Defense, Space & Security CEO. “The headquarters move, coupled with our senior leaders being based at and spending their time at major engineering, production and manufacturing centers across the U.S., reflects our continued focus on disciplined performance across our business.”

The change moves the defense headquarters from Arlington, Virginia back to St. Louis, Missouri, where it was located from 1997 to 2017.

Boeing is progressing on a multi-year, multi-billion-dollar investment in the world’s most advanced combat aircraft production facilities, including in St. Louis. The site has a rich history designing and manufacturing some of the world’s most innovative spacecraft and most advanced and innovative tactical aircraft. By aligning leadership with the workforce and investing in state-of-the-art facilities, Boeing is poised to strengthen its core business and drive innovation in defense solutions for the U.S. military and global allies.

For five years, the Diverse Business Accelerator has helped more than 55 small business owners level up, creating more than 120 new jobs in the St. Louis region. This year, Greater St. Louis, Inc. will build on that impact, introducing the Supplier Readiness initiative, which includes not only the Supplier Readiness Accelerator — a new iteration of the DBA — but readiness coaching and support.

The new Supplier Readiness Accelerator builds on the work of the DBA, offering a 12-week, cohort-based program designed to prepare locally owned small businesses for growth and integration into corporate supply chains. Expanding its impact even further, the accelerator this week announced a new strategic capital partnership with the St. Louis Small Business Empowerment Center, which will help scale programming, deepen support, and drive measurable outcomes for small, scalable businesses.

“This is a shared commitment to strengthening small, emerging, and growth‑stage suppliers so they can meet the scale, quality, and operational expectations of major enterprises,” said Senior Director Lakesha Mathis, who leads the Community Engagement team at GSL. “Together, we’re expanding access to the tools, coaching, and capital suppliers need to become supplier ready and unlock new opportunities.

The Bottom Line

To grow St. Louis, we must grow its economic capacity, and that means supporting the individuals with the drive, ambition, and ideas to build and scale new businesses.

“These new offerings expand and amplify the opportunities we provide to St. Louis’ small business owners,” said Lakesha Mathis, Senior Director, GSL. “Our goal is to create a world-class ecosystem for small businesses — we can only do that if we prepare these local leaders for growth and success.”