Salem is getting a million-dollar boost from the state to pay for airport terminal improvements and emergency power systems.  Lawmakers put $1.35 million toward the city’s airport improvement project during the 2026 legislative session. The money comes from the proceeds of state lottery sales. It will be used to finish plans for and begin renovating the airport terminal as part of an ongoing city effort to attract commercial air service. Money will also be used to upgrade the airport’s emergency infrastructure to support rescue aircraft that use it.  City officials asked the legislature for the money, public works spokesman Jason Roberts said.  Salem Mayor Julie Hoy penned a Feb. 11 letter in support of the bill, calling the money “critical” to support rescue efforts based at the airport and to help support its expansion. State Rep. Kevin Mannix, R-Salem, touted the funding in a March 6 news release. He said it “helps leverage federal dollars for terminal improvements and supports the continued growth of commercial air service for Salem,” according to the release.  The state money will be combined with another $850,000 from the federal government secured in 2024 by U.S. Rep. Andrea Salinas, a Democrat representing parts of Marion County, to help complete the plan and fund emergency upgrades. That gives Salem $2.2 million toward airport projects. A portion of the money will fund a new emergency generator to keep terminal operations and flights running during power outages, according to Roberts. The new equipment would cost an estimated $600,000.  The airport currently does not have the backup power to support its operations during an outage. Its runway lights, air traffic control tower, terminal and fueling facilities all cease to operate, Robert said.  The airport serves private and government aircraft, including the Oregon Department of Aviation, Oregon Department of Forestry, Oregon National Guard and Oregon State Police. Roberts said the airport would be a regional base for emergency operations during a natural disaster or other major event. With the backup power, the Federal Emergency Management Agency, Air Force, National Guard and other rescue aircraft could rely on the facility amid an outage.   The airport is also home to the Army Aviation Support Facility, which is “centrally located to provide quick initial response for search and rescue missions as well as supporting wildland firefighting efforts,” according to Oregon Military Department spokesman Lt. Col. Stephen Bomar.  In July 2025, the Oregon National Guard deployed a Black Hawk helicopter from the Salem facility to help find a hiker who had fallen from a cliff near Crater Lake. That same day, the helicopter responded to a separate accident nearby, transporting another injured hiker to the local airport where ambulances waited, before returning to Salem.  The rest of the money will go toward plans and initial construction of an expanded terminal as part of the city’s ongoing effort to attract commercial air service. Avelo, a commercial airline, previously operated out of the airport, offering Salem residents weekly flights to the Los Angeles area and Las Vegas for a little under two years. The budget airline abruptly pulled out of the airport in the summer of 2025, citing inadequate financial returns.  Since then, city officials have been trying to attract a new carrier to Salem, so far without success. The terminal renovations will expand the airport to handle the passengers from two modern Boeing or Airbus airplanes. The current terminal was built for small regional-sized airplanes, Roberts said, and doesn’t have enough space at the gate for today’s aircraft. It can only support one jet airliner at a time.  The airport’s baggage claim, rental car counter and Transportation Security Administration waiting line are all in the same area, he said. Plans include the addition of a second gate and more seating, doubling the size of the passenger boarding area, expanding baggage claim and adding more restrooms.  Roberts said the state dollars will be used this summer to get the ball rolling on the plan to improve the airport terminal. Completing the terminal plan will cost an estimated $750,000, he said. A start date for the renovations hasn’t been set. The terminal plan needs to wrap before the first phase of construction can begin, Roberts said. An aviation design consulting firm will draw up several layout and design options for the terminal expansion for city officials to select from. They will also invite public input from residents, members of the local aviation community and the Airport Advisory Commission. The city council previously dedicated $2.4 million in 2023 to fund terminal renovations and add additional airport staff ahead of Avelo’s arrival in Salem.  Roberts said the multiple streams of funding “shows that Salem has support from federal, state, county, and city governments and community business support for restarting commercial air service.” What remains after the completion of the terminal plan and emergency generator installation will fund the first phase of construction for the terminal. Roberts said more money may be needed for the construction, but that isn’t known yet. Have a news tip? Contact reporter Hailey Cook: [email protected] . 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