The University Park Airport will receive more than $775,000 in federal funds for a planned expansion of its terminal, U.S. Rep. William Clinger, R-Pa., said yesterday.

Clinger, vice chairman of the House Aviation Subcommittee, said the Federal Aviation Administration will grant $742,991 to the airport this fiscal year, and $35,445 for 1991.

The Centre County Airport Authority plans to increase the airport terminal by 14,000 square feet. Authority officials said plans are being made for increased baggage claim and seating areas, an expanded gift shop and snack bar, and the possible addition of a restaurant to the terminal.

Airport officials began expansion plans in January 1988.

"We're really glad the money is coming," Airport Manager Bob Dannaker said, adding that the grant will help the airport meet increasing demands placed on it by an increasing number of passengers. With nearly 140,000 people using the airport annually, the terminal is practically "busting at the seams," he said.

The University Park Airport handles about 2,900 flights per month, Dannaker said, so air traffic is relatively light. The private and commuter flights usually go to larger facilities, such as the Harrisburg International Airport.

The FAA grant "will significantly improve our airport," Clinger said in a news release. "A modern, expanded airport will be increasingly important to State College and Centre County as we move into the 1990s. This grant is a significant step in assuring that our transportation network will meet the area's needs," he said.

Robert Finley, assistant to the vice president of business operations at the University, said in a telephone interview last night that it is important for the terminal to adequately meet the passengers' needs.

"We've seen a lot of growth at the airport recently," he said. "And as you gain passengers, you need the additional facilities to support the load."

The expansion designs are in the preliminary planning stages, Finley said. The architectural firm, John C. Hass Associates, Inc., 1301 N. Atherton St., is designing the project.

In a separate expansion project at the airport, the main runway will be expanded from 5,000 to 6,700 feet, along with an increased amount of lighting and taxiing area for planes. Dannaker said money from the FAA will be needed for the runway extensions, but he said that money will not be awarded for at least eight months.