The Rankin Inlet airport will get two new wings to the existing terminal building making it four times its current capacity.
Transport Canada Minister Marc Garneau made the $45.5 million announcement in Iqaluit on Tuesday afternoon.
Garneau also revealed that $4.5 million will go towards the study and design of a 450-km all-season road in the Kivalliq region. The proposed road would connect Arviat, Chesterfield Inlet, Rankin Inlet and Whale Cove. The money is coming from the National Trade Corridors Fund.
An additional $195,000 will aid passengers with disabilities by adding boarding ramps at airports in Arviat, Whale Cove, Chesterfield Inlet, Baker Lake, Naujaat, Coral Harbour, and Sanikiluaq.