Infrastructure Investment and Jobs Act – Airports

Points of contact:

Joseph Lai, Vice President – jlai@bgrdc.com
William Crozer, Vice President and Managing Director of State and Local Advocacy – wcrozer@bgrdc.com

Topline Funding: $25 billion
Authorizes an additional $25 billion (B) in funding to airports on top of regular Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding and passenger facilities charges (PFC) collected by airports on a local level. These funds are for direct airport improvement projects. $15B in formula funding for AIP projects; $5B in discretionary grants for airport terminal development projects; and $5B for Federal Aviation Administration (FAA) facilities and equipment, including FAA-owned contract towers. The bill also extends eligibility for Transportation Infrastructure Finance and Innovation Act (TIFIA) loans to airport projects and economic development projects related to rail stations. Other surface transportation reauthorization funds affect existing funding streams for airports.

PROGRAMS & FUNDING STREAMS
AIRPORT INFRASTRUCTURE GRANTS (FORMULA FUNDING)
Authorizes an additional $15B over five years for AIP formula grants. For context, airports usually receive approximately $3.2 to $3.5B a year in AIP funds. $500 million (M) earmarked each year (over 5 years) for non-primary and general aviation airports and another $20M for the contract tower program. Airports are entitled to a certain amount of AIP funding each year, based on passenger volume. If their capital project needs exceed their available entitlement funds, then the FAA can supplement their entitlements with discretionary funding. Eligible uses include airport infrastructure projects for runways, taxiways, airport signage, airport lighting, and airport markings.

Agency of Jurisdiction: U.S. Department of Transportation (DOT) – FAA
Eligible Grantees: Public-use airports: airports that are open to the public that also are publicly owned, or privately owned but designated by FAA as a reliever, or privately owned but having scheduled service and at least 2,500 annual enplanements. Airports must also be included in the National Plan of Integrated Airport Systems (NPIAS). Eligible projects include those improvements related to enhancing airport safety, capacity, security, and environmental concerns. In general, sponsors can get AIP funds for most airfield capital improvements or rehabilitation projects and in some specific situations, for terminals, hangars, and nonaviation development.
Timing: Immediately, will be made available for each of fiscal years 2022 through 2026, derived from the general fund of the Treasury.
Notes: For large and medium primary hub airports, the grant covers 75% of eligible costs (or 80 percent for noise program implementation). For small primary, reliever, and general aviation airports, the grant covers a range of 90-95% of eligible costs, based on statutory requirements.

AIRPORT TERMINAL PROGRAM (DISCRETIONARY FUNDING)
Authorizes $5B over five years for the Airport Terminal Program, a discretionary grant program for terminal development and other landside projects. discretionary grant program, for terminal development and other landside projects. Airports will be able to use this funding to increase passenger access, replace aging infrastructure, improve facilities to achieve ADA compliance, and allow for increased energy efficiency and upgrades that promote airports for LEED certification. This program also provides funding to help replace terminals that interfere with airfield safety. Funding not based on passenger volume.
Agency of Jurisdiction: DOT – FAA
Eligible Grantees: Public-use airports: airports that are open to the public that also are publicly owned, or privately owned but designated by FAA as a reliever, or privately owned but having scheduled service and at least 2,500 annual enplanements. Airports must also be included in the NPIAS.
Timing: Funds will be made available for each of fiscal years 2022 through 2026, with the directive for the Secretary to issue a notice of funding not later than 60 days after the date of enactment.
Notes: No more than 55% can be granted to large hub airports, no more than 15% can be granted to medium hub airports, no more than 20% can be granted to small hub airports, and no less than 10% can be granted to nonhub and nonprimary airports.

AIR TRAFFIC CONTROL INFRASTRUCTURE
Authorizes $5B to upgrade existing FAA air traffic control facilities, including towers, TRACONs, Air Route Traffic Control Centers (ARTCC or centers), Combined Control Facilities (CCFs), and FAA owned Federal Contract Towers (FCTs). Eligible uses include replacing terminal and en route air traffic control facilities and improving air route traffic control center and combined control facility buildings.
Agency of Jurisdiction: DOT – FAA
Eligible Grantees: FAA-owned ATC facilities, including contract towers.
Timing: Funds will be made available for each of fiscal years 2022 through 2026, with the directive for the Secretary to issue a notice of funding not later than 90 days after the date of enactment.
Notes: No less than $200 million will be made available for air traffic control towers owned by the FAA and staffed through the contract tower program.
Topline Funding: $25 billion
Authorizes an additional $25 billion (B) in funding to airports on top of regular Federal Aviation Administration (FAA) Airport Improvement Program (AIP) funding and passenger facilities charges (PFC) collected by airports on a local level. These funds are for direct airport improvement projects. $15B in formula funding for AIP projects; $5B in discretionary grants for airport terminal development projects; and $5B for Federal Aviation Administration (FAA) facilities and equipment, including FAA-owned contract towers. The bill also extends eligibility for Transportation Infrastructure Finance and Innovation Act (TIFIA) loans to airport projects and economic development projects related to rail stations. Other surface transportation reauthorization funds affect existing funding streams for airports.

PROGRAMS & FUNDING STREAMS
AIRPORT INFRASTRUCTURE GRANTS (FORMULA FUNDING)
Authorizes an additional $15B over five years for AIP formula grants. For context, airports usually receive approximately $3.2 to $3.5B a year in AIP funds. $500 million (M) earmarked each year (over 5 years) for non-primary and general aviation airports and another $20M for the contract tower program. Airports are entitled to a certain amount of AIP funding each year, based on passenger volume. If their capital project needs exceed their available entitlement funds, then the FAA can supplement their entitlements with discretionary funding. Eligible uses include airport infrastructure projects for runways, taxiways, airport signage, airport lighting, and airport markings.

Agency of Jurisdiction: U.S. Department of Transportation (DOT) – FAA
Eligible Grantees: Public-use airports: airports that are open to the public that also are publicly owned, or privately owned but designated by FAA as a reliever, or privately owned but having scheduled service and at least 2,500 annual enplanements. Airports must also be included in the National Plan of Integrated Airport Systems (NPIAS). Eligible projects include those improvements related to enhancing airport safety, capacity, security, and environmental concerns. In general, sponsors can get AIP funds for most airfield capital improvements or rehabilitation projects and in some specific situations, for terminals, hangars, and nonaviation development.
Timing: Immediately, will be made available for each of fiscal years 2022 through 2026, derived from the general fund of the Treasury.
Notes: For large and medium primary hub airports, the grant covers 75% of eligible costs (or 80 percent for noise program implementation). For small primary, reliever, and general aviation airports, the grant covers a range of 90-95% of eligible costs, based on statutory requirements.

AIRPORT TERMINAL PROGRAM (DISCRETIONARY FUNDING)
Authorizes $5B over five years for the Airport Terminal Program, a discretionary grant program for terminal development and other landside projects. discretionary grant program, for terminal development and other landside projects. Airports will be able to use this funding to increase passenger access, replace aging infrastructure, improve facilities to achieve ADA compliance, and allow for increased energy efficiency and upgrades that promote airports for LEED certification. This program also provides funding to help replace terminals that interfere with airfield safety. Funding not based on passenger volume.
Agency of Jurisdiction: DOT – FAA
Eligible Grantees: Public-use airports: airports that are open to the public that also are publicly owned, or privately owned but designated by FAA as a reliever, or privately owned but having scheduled service and at least 2,500 annual enplanements. Airports must also be included in the NPIAS.
Timing: Funds will be made available for each of fiscal years 2022 through 2026, with the directive for the Secretary to issue a notice of funding not later than 60 days after the date of enactment.
Notes: No more than 55% can be granted to large hub airports, no more than 15% can be granted to medium hub airports, no more than 20% can be granted to small hub airports, and no less than 10% can be granted to nonhub and nonprimary airports.

AIR TRAFFIC CONTROL INFRASTRUCTURE
Authorizes $5B to upgrade existing FAA air traffic control facilities, including towers, TRACONs, Air Route Traffic Control Centers (ARTCC or centers), Combined Control Facilities (CCFs), and FAA owned Federal Contract Towers (FCTs). Eligible uses include replacing terminal and en route air traffic control facilities and improving air route traffic control center and combined control facility buildings.
Agency of Jurisdiction: DOT – FAA
Eligible Grantees: FAA-owned ATC facilities, including contract towers.
Timing: Funds will be made available for each of fiscal years 2022 through 2026, with the directive for the Secretary to issue a notice of funding not later than 90 days after the date of enactment.
Notes: No less than $200 million will be made available for air traffic control towers owned by the FAA and staffed through the contract tower program.