Airport Alert: House Appropriations Committee Unveils FY25 DOT/FAA Spending Bill With $4 Billion for AIP
House Appropriations Committee Unveils FY25 DOT/FAA Spending Bill With $4 Billion for AIP
June 26, 2024
In advance of consideration by a key subcommittee tomorrow, House Appropriations Committee Republican leaders this morning released a draft fiscal year 2025 spending bill that includes proposed funding levels for DOT, FAA, and other agencies for the fiscal year that begins on October 1. As we have noted on our weekly calls and elsewhere, House Republicans are moving forward with FY25 spending bills at overall funding levels well below their counterparts in the Democrat-controlled Senate.
Importantly for airports, the House FY25 DOT/FAA funding bill proposes $4 billion for AIP consistent with the authorized funding levels included in the recently enacted FAA reauthorization bill. Unfortunately, the measure does not include funding for supplemental discretionary AIP grants. The House measure also fails to propose funding authorized in the FAA reauthorization bill to assist airports with transitioning to fluorine-free firefighting foam as requested by AAAE, airports, and a large contingent of House lawmakers. AAAE’s priorities for the FY25 DOT/FAA spending bill may be viewed here.
In addition to increased AIP funding, the House bill proposes an additional $257 million in general fund resources to fund 84 airport earmarks rather than taking those funds from base AIP funding. The FAA Contract Tower Program would be funded at $256 million.
Overall, the measure includes $21.7 billion in total budgetary resources for the FAA. Of that amount, $13.6 billion is proposed for FAA operations, which committee leaders say would allow the agency to hire 2,000 air traffic controllers to replace the retiring workforce. The bill proposes $3.5 billion for FAA facilities and equipment, which is $358 million above the FY24 enacted level. The FAA research, engineering, and development account is funded at $260 million.
Additional details, including a list of airport earmarks, will be included in the yet-to-be-released committee report to accompany the legislation. That document is typically made available when the bill is considered by the full committee later in the process. The bill released today does include notable information, including:
AIP Funding: The House bill proposes $4 billion for the traditional AIP account in FY25 – the amount authorized by the recently enacted FAA reauthorization bill. Of that amount, the bill designates $163.6 million for administration expenses, $15 million for the Airport Cooperative Research Program, $43.4 million for Airport Technology Research, and $10 million for the Small Community Air Service Development Program.
Supplemental AIP Funding/Earmarks: The House bill does not propose funding for supplemental AIP discretionary grants but includes $257 million in general fund resources for 84 airport earmarks, which are officially known as “Community Project Funding” requests. As noted above, the list of airport earmarks is not yet available.
Funding to Assist Airports With Transitioning to Fluorine-Free Firefighting Foam: The House bill does not appear to include AAAE and airport-requested funding to help airports transition to fluorine-free firefighting foam. The recently enacted FAA bill authorized $350 million for a PFAS replacement program for commercial service airports, up to $30 million of which is to be used for grants to part 139 airports to replace ARFF vehicles. AAAE, airports, and a large contingent of House Members have urged Congress to appropriate full funding to help airports transition to fluorine-free firefighting foam.
Continued EDS Prohibition: The bill continues the prohibition against the use of AIP funds for “the replacement of baggage conveyor systems, reconfiguration of terminal baggage areas, or other airport improvements that are necessary to install bulk explosive detection systems.”
Local Match: The bill maintains a narrow provision that allows small airports to pay the lower 5 percent match for any unfinished phased projects that were underway prior to the passage of the FAA Modernization and Reform Act of 2012.
Contract Towers: The House bill includes $256 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs. The House proposal represents a $50.6 million increase from the current funding level.
Essential Air Service: The House bill includes $423 million in discretionary funding for the Essential Air Service Program.
Small Community Air Service Development: The House bill includes $10 million for the Small Community Air Service Development Program
Cost Free Space: The House bill includes a AAAE-backed proposal that would continue to prohibit the FAA from requiring airports to provide space free of charge in airport-owned buildings.
Additional Information
1. Bill Summary
2. Bill Text
What’s Next?
The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies will consider the draft bill tomorrow at 8:30 a.m. The full committee is scheduled to consider the measure on Wednesday, July 10. The Senate Appropriations Committee has not yet released its version of the FY25 DOT/FAA spending bill nor is there a definitive schedule for its consideration in the upper chamber. Ultimately, lawmakers will have to reconcile differences between the House and Senate measures – a process that is unlikely to be completed until after the November elections.
