Chicago Department of Aviation to Propose 2027 Budget

The proposed 2027 budget includes increased funding for outside contracting and a shift in reliance on state and federal grants.

Updated on Oct. 26, 2026 in Air Travel

Isometric editorial illustration showing a minimalist airport terminal girder and runway approach lights, representing municipal aviation infrastructure planning. — The Chicago Department of Aviation has proposed a 2027 budget that increases reliance on local funding and outside contracting for O'Hare and Midway operations. AI Illustration. Upload story photo >

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The Chicago Department of Aviation has released its 2027 budget proposal, which includes an overall appropriation increase and a shift toward local funding. The plan also adds 33 new full-time equivalent positions to address operational needs.

Why it matters

The proposal reflects a significant change in the department's financial landscape, balancing reduced federal support with increased state contributions from the Aviation Fuel Tax Program. These adjustments are intended to sustain operations at O'Hare and Midway airports through higher local reliance.

The 2027 budget proposal relies on 56.9% local funding, supported by a $161.3 million increase in state grant funding from the Aviation Fuel Tax Program. The department also allocated $3 million for operations and maintenance reserves and $2 million for special capital projects.

The players

Chicago Department of Aviation

This local municipal agency is responsible for the operation and development of O'Hare and Midway airports.

Federal Aviation Administration

This federal agency provides grant funding to support airport infrastructure through the Airport Improvement Program.

The details

The proposal includes 211 persistent full-time vacancies and introduces three new Aviation Security Officer positions alongside five new Project Manager roles. The department aims to offset a $149.3 million decrease in reserve balance appropriations by scaling up outside contracting by $237.3 million.

The 2027 budget proposal outlines the financial plan for the upcoming fiscal year.
The department recorded an average vacancy rate of 14.1% between January and September 2026.

Travel Outlook

The budget strategy follows a financial pattern established by the IDOT's Aviation Fuel Tax Program to offset federal funding fluctuations. This reliance on state-level support marks a shift from historical reliance on federal grant programs for capital improvements.

Travelers using O'Hare and Midway may see shifts in airport maintenance and security staffing levels as the department moves to fill 211 persistent vacancies. These budgetary changes aim to ensure consistent facility operations despite the evolving funding landscape.

The takeaway

The budget proposal highlights the city's effort to stabilize airport operations by increasing local and state-funded resources. Residents should expect a shift toward private contracting as the department manages its current vacancy challenges.