Construction of the new terminal will be funded from a $12.43 million grant from the Federal Aviation Administration (FAA). The grant will pay for the terminal’s structure and foundation costs, electrical and steel work, plus five passenger loading bridges.

Currently, the Kalamazoo Airport has a seven gate passenger terminal. The terminal also houses the air traffic control tower. The original Kalamazoo terminal was a small building made with scrap materials left over from other local projects. In 1958, a new terminal was constructed to replace the old terminal that housed passengers since the 1920s. The terminal was completely renovated in 1989.

The new terminal project has been on the cards since 2007, and has been put on long term hold due to lack of finance. Though the groundbreaking ceremony took place June 29, 2009, work had not yet begun, as officials were waiting to get additional federal funding. Work is now expected to commence on August 17, 2009.