The Port Authority of New York and New Jersey (PANYNJ) Board of Commissioners has authorised $5.2bn of funding for modernisation projects at LaGuardia Airport and Newark Liberty International Airport in the US.
Of the total funding, $2.9bn is for the new Terminal B and Central Hall at LaGuardia, while $2.3bn will be spent replacing Newark Liberty's outmoded Terminal A.
The board approved a lease with New York's LaGuardia Gateway Partners in order to finance, design, build, operate and maintain a new terminal at the airport.
The new Central Hall will connect Terminal B with Terminal C as well as other supporting infrastructure, such as new roads and a West Parking Garage.
Executed under a public-private partnership, the project is expected to raise $1.3bn in wages and $5.2bn in regional economic activity.
The Port Authority has authorised a total project design and construction cost of $4.015bn, two thirds of which will be paid by private funds and passenger fees.
Port Authority chairman John Degnan said: "Today's authorisations are a momentous step forward for our airports, for air travellers and for the economic health of the New York-New Jersey region."
The Terminal A replacement project at New Jersey's Newark Liberty International Airport is expected to generate $600m in wages and another $3.3bn in regional economic activity overall.
The project will construct a new terminal building and parking garage complex.
Port Authority vice chairman Scott Rechler said: "Modernising our aging airport terminals demonstrates the Port Authority's commitment to focussing on the region's transportation infrastructure."
Scheduled for completion in 2022, the modernisation programme is expected to result in 2,890 direct jobs and $270m in direct payroll wages.