Houston Approved $850 Million Airport Bond Sale
The city council cleared a bond issuance to support United Airlines’ ongoing expansion at George Bush Intercontinental Airport.
Updated on Oct. 14, 2026 in Air Travel
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Houston City Council members approved an $850 million tax-exempt bond sale on Wednesday to fund the expansion of Terminal B at George Bush Intercontinental Airport. The issuance completes a $2 billion financing plan for the major infrastructure project.
Why it matters
The financing is critical for upgrading airport facilities to accommodate the high volume of traffic handled by United Airlines, which served 73% of the airport’s passengers in 2025. The deal is backed by lease payments from the airline, which currently holds a BB-plus rating from S&P Global Ratings.
The bond deal, rated BB-plus by S&P Global Ratings, is expected to carry a true interest cost between 5.8% and 6.2%. This sale rounds out a total $2 billion capital injection for the terminal development project.
The players
Houston City Council
This is the legislative body responsible for governing the city of Houston and approving municipal financial decisions including bond issuances.
United Airlines
This major commercial carrier is a primary tenant at George Bush Intercontinental Airport and is the entity whose lease payments back the municipal bonds.
George Bush Intercontinental Airport
This is a primary international aviation hub located in Houston that is currently undergoing a multi-billion dollar terminal expansion.
S&P Global Ratings
This is a credit rating agency that provides independent research and financial analysis on stocks, bonds, and commodities.
The details
The bond sale is set to price in early November, providing necessary capital for the Terminal B project. Houston previously issued $1.1 billion in similar debt in 2024 to support airport operations.
Timeline
In 2024, Houston sold $1.1 billion of bonds.
During 2025, United accounted for 73% of enplaned passengers.
On September 29, 2026, the finance director presented anticipated interest costs.
On October 14, 2026, the City Council approved the bond deal.
In November 2026, the bonds are scheduled to price.
Travel Outlook
This bond issuance follows the 2024 Houston municipal bond issuance as the city continues to leverage debt for major aviation infrastructure projects. The expansion aims to maintain terminal capacity amid persistent passenger volume growth at the hub.
Travelers should not expect immediate changes to terminal access or daily airport operations during the initial phase of the bond issuance. Long-term travelers may eventually see modernized facilities and increased capacity as the expansion project progresses toward completion.
The takeaway
The city remains committed to infrastructure growth by securing debt backed by major carrier lease agreements. Travelers should anticipate that large-scale airport upgrades will continue to be funded through similar municipal financing mechanisms.
What happens next
The bonds are scheduled to price in November 2026.
Further reading
For more on the city's aviation projects, visit the Air Travel section.
Source note: This article includes information reported by Bond Buyer.
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