Gary to receive federal cash for blight removal and airport expansion

Mayor Eddie Melton issued a strong endorsement of U.S. Rep. Frank J. Mrvan’s legislative efforts on Tuesday,  January 27, crediting the congressman with securing nearly $2 million in critical federal investments for the City of Gary in the Fiscal Year 2026 budget.

The funding package, which Melton described as the result of a “long battle” in Washington, targets two distinct but equally vital components of the city’s economic strategy: the removal of dangerous blight on the West Side and the expansion of commercial infrastructure at the Gary/Chicago International Airport.

According to the mayor’s office, the appropriations include a dedicated $1.1 million grant specifically for the demolition of the former Ivanhoe Elementary School. The site has long been a concern for local residents and city planners. Melton emphasized that the final funding amount represents a significant increase over original projections, a shift he attributed to Mrvan’s refusal to let the project “fall through the cracks.”

Melton framed the demolition not merely as a cleanup project, but as a necessary precursor to safety and redevelopment.

“This victory is especially significant for the West Side,” Melton said. “We didn’t just hold the line on funding for the demolition of the former Ivanhoe Elementary School—we secured $1.1 million… This additional funding ensures we have the resources necessary to fully tackle this dangerous eyesore, removing blight that has plagued the neighborhood for years and opening the door for revitalization.”

In addition to the neighborhood stabilization efforts, the federal package includes $850,000 for the Gary/Chicago International Airport. The administration plans to utilize these funds to enhance the airport’s cargo logistics capabilities. As the city continues to position the airport as a major regional economic hub capable of relieving supply chain pressure from nearby Chicago, these infrastructure upgrades are viewed as essential for attracting new tenants.

Melton noted that the airport funding is directly tied to the city’s broader goals of job creation and sustainable economic growth.

“As we continue to position our airport as a regional economic hub, this funding allows us to build the infrastructure needed to attract new business and create sustainable jobs,” Melton said.

The announcement highlighted the close working relationship between City Hall and Gary’s federal representatives. Melton pointed to the successful appropriation as proof of the effectiveness of aligned leadership.

“Congressman Mrvan’s ability to deliver these results proves that when local and federal leadership work in lockstep, we deliver real wins for our residents,” Melton said, adding that the city is prepared to deploy the resources “immediately.”