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City of Houston to vote on first payment for United Airlines $2.6 billion project after months-long halt

The city has a total commitment of $625 million, to be made in 12 and 24 months, and United will spend more than $1.9 billion according to the plan.

Ashley Brown | Posted On
March 4, 2024, 5:09 PM

Houston City Council is expected to vote on Wednesday on the proposed funding expansion of United Airlines Terminal B at George Bush Intercontinental Airport. The vote comes almost four months after the previous controller halted the funding for the project.

The City of Houston was supposed to pay the first installment of $150 million in early November to United Airlines to jumpstart the project. The city has a total commitment of $625 million, to be made in 12 and 24 months, and United will spend more than $1.9 billion according to the plan. Week after week, former city controller Chris Brown, who wrapped up his term in December, failed to sign off on the funding. At the time, Brown said he was concerned about the financial impact of the deal on the city's finances.

"I'm elected by the taxpayers to ensure we're making smart use of funds and making smart decisions that don't jeopardize the taxpayers in the future,” Brown previously told Houston Public Media.

After an ongoing debate between Brown, former Mayor Sylvester Turner, and council members, a memorandum of agreement was signed on November 15 despite the funding questions. The agreement between United Airlines and the City of Houston confirmed both parties were still in support of the plan.

United is the only airline that operates out of Terminal B and the new project aims to triple its capacity – with an estimated 36 million passengers in the coming years. The airline celebrated a groundbreaking in November, although construction had not started and there was no clear date on when the project would take off.

The $2.6 billion redevelopment project is expected to bring over 3,000 jobs, 40 new gates for domestic and international travel, new amenities, and reconstructing its north and south concourses. According to the city, Terminal B is overdue for an upgrade, opening in 1969, as one of the original terminals at Bush.

Now, the plan is moving forward under the hands of the new administration.