The more than $20 million comes from the Federal Aviation Administration.
The money will be used to help expand the existing terminal by more than 112,000 square feet.
That includes more airline ticketing counters, a concourse with boarding bridges and passenger security screening checkpoint.
Plans are also in the works for a new in-line checked baggage inspection system to help move passengers and baggage in a more timely fashion.
71 other California airports have also been awarded federal funds for upgrades.