McGhee Tyson Airport Secures $22.5 Million State Grant for New Parking Garage

McGhee Tyson Airport in Tennessee has been awarded $22.5 million in state funding to support construction of a major new parking facility, marking a significant milestone in the airport’s largest-ever capital project.

The grant was provided through the aeronautics division of the Tennessee Department of Transportation and will contribute toward completion of a multi-level garage currently under development near the terminal.

Major Expansion to Support Rapid Growth

Work on the project began in 2023 with an initial budget of $185 million and a design concept inspired by the nearby Great Smoky Mountains, a key tourism landmark in East Tennessee. The project is expected to reach completion in summer 2027.

By the time the facility opens, total investment is projected to approach $200 million. The new structure will deliver 3,500 additional parking spaces, a capacity increase airport officials say is essential to support rising passenger volumes and ensure efficient operations as traffic continues to expand.

Existing Parking and Capacity Pressures

The airport currently operates one existing parking garage, four surface parking lots and a complimentary cell phone waiting area. A short-term lot adjacent to the terminal was closed in November 2024 to make way for the new structure.

Daily parking rates vary across facilities. Economy lots are priced at $11 per day, terminal lots at $16 per day, and the existing garage at $22 per day.

In 2024, McGhee Tyson ranked as the fastest-expanding airport in the United States in terms of passenger growth. At the same time, the Knoxville region is experiencing sustained population increases, with forecasts indicating that more than 75,000 additional residents could relocate to the area by 2040.

Funding Structure

The total estimated cost of the new garage has increased from roughly $185.5 million to $197.4 million. Alongside the recently awarded $22.5 million state grant, the airport is relying on multiple funding sources to cover the investment.

According to McGhee Tyson spokesperson Becky Huckaby, approximately $148 million has been raised through bonds since construction began. The original financial plan also incorporated more than $30.2 million from state support and airport authority resources.

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