Los Angeles City Council Approves $400 Million for LAX Project

In a unanimous decision, the Los Angeles City Council has approved an additional $400 million for the Automated People Mover (APM) project at Los Angeles International Airport (LAX). This funding, recommended by the council's Trade, Travel and Tourism Committee and the Los Angeles Board of Airport Commission, aims to address legal claims from the contractor, LINXS (LAX Integrated Express Solutions), regarding compensation and production issues. The project, which has faced delays, is now expected to commence operations in early 2026. The recent funding approval marks the second time this year that the city has allocated millions to settle claims from the contractor. Earlier in May, the Los Angeles World Airports board approved $200 million for similar issues, which is now included in the total $400 million approved on Friday. Overall, the settlement amount has reached approximately $550 million, with an additional $50 million set aside as a contingency fund that may or may not be fully utilized. The APM project is a crucial component of LAX's extensive $30 billion upgrade, which includes enhancements to terminals, parking structures, and gates. Airport officials are optimistic about meeting the revised timeline, especially with significant events like the 2026 FIFA World Cup and the 2028 Summer Olympic Games on the horizon. LAWA CEO John Ackerman emphasized the complexity of the project, noting that the focus is shifting from construction to the critical phase of train testing, which will connect the APM system to the airport infrastructure.