Airport Alert: More Details Emerge on Senate DOT/FAA Spending Bill
More Details Emerge on Senate DOT/FAA Spending Bill
July 26, 2024
As we previously reported, the Senate Appropriations Committee yesterday approved a fiscal year 2025 transportation spending bill that proposes to increase AIP funding to $4 billion, provide an additional $550 million for airport infrastructure projects, and provide $70 million to help airports convert to fluorine free firefighting foam.
We have more good news to report after the Committee released the bill text, the accompanying report, and list of earmarks. For instance, we now know that the Senate bill includes $241 million for the FAA Contract Tower Program -- $35.6 million more than the current level. It also includes a down payment to convert some busy contract towers to FAA-staffed facilities.
The Senate bill also proposes to increase funding for the Small Community Air Service Development Program to $15 million -- a $5 million increase from the current level. Below are more details on the Senate version of the Fiscal Year 2025 Transportation, Housing and Urban Development, and Related Agencies Appropriations bill.
Funding for FAA Programs
FAA: The Senate proposal includes slightly more than $22 billion for the FAA, which is more than $1.9 billion more than the FY24 enacted level.
Operations: The Senate bill includes slightly more than $13.6 billion for FAA operations – the same amount that the administration requested.
Facilities and Equipment: The bill proposes $3.6 billion for FAA facilities and equipment, including NextGen programs – the same amount the administration requested.
Research, Engineering, and Development: The House measure includes $290 million for research, engineering, and development -- $10 million more than the current level.
Airport Improvement Program
Traditional Airport Improvement Program Funding: The Sente bill includes $4 billion for the traditional AIP account in FY25 – $650 million more than the current level and the same amount authorized in the FAA bill. Of that amount, approximately $163.6 million is for administration expenses, $15 million for the Airport Cooperative Research Program, almost $43.4 million for Airport Technology Research, and $15 million for the Small Community Air Service Development Program.
Supplemental Airport Improvement Program Funding: The Senate bill proposes an additional $520.2 million for airports. Of that amount, $230 million is for additional airport infrastructure grants for projects including those that focus on runway safety and aircraft noise compatibility planning. Approximately $220.2 million is for airport earmarks, also known as “Congressional Directed Spending.” A list of airport earmarks may be viewed here.
Finally, another $70 million is reserved for the PFAS replacement program. The FAA bill authorized a total of $350 million to help transition to fluorine free firefighting foam. The House version of the FY25 DOT spending bills does not include any funding for this transition.
AIP Discretionary Funds and Enplanements: The Committee “directs the FAA to consider the full range of flight activities (such as flight training, air cargo, emergency response, pilot training, etc.) and associated metrics when considering AIP discretionary grants.” The Committee also acknowledges how airline provided bus service impacts enplanements and “encourages the FAA to study the financial impact of secure-side motorcoach access programs on airports, and possible strategies to mitigate any reduction in revenue.”
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.”
VALE and ZEV Programs: In its accompanying report, the Committee directs the FAA to provide not less than $50 million for projects eligible under the Voluntary Airport Low Emissions and Airport Zero Emission Vehicle Programs.
Sound Insulation: The Committee directs the FAA to consider noise mitigation for certain eligible residences that had received funds for sound insulation prior to 2002 but were subject to faulty materials or installation. The committee urges the agency to consider a one-time mitigation with strict eligibility criteria.
Airport Growth: The report points out that airports rely on “a combination of Federal, State, and local funds, as well as airlines, in some instances” for capital projects. The Committee suggests that DOT and the FAA “should help coordinate these partnerships between airports and airlines, to the extent permissible under current law, to ensure funding commitments are met and that they adequately capitalize on prior or ongoing Federal investments at the airport.”
Boarding Bridges: The report indicates that the Committee supports language in the FAA reauthorization bill that “prohibits Federal funding from going towards the procurement of passenger boarding bridges from Chinese State-owned, controlled, or subsidized companies that seek to threaten the United States’ economy and national security.”
Small Community Programs
Contract Towers: The Senate bill includes $241 million for the FAA Contract Tower and Contract Tower Cost Share Programs – $35.6 million more than the current level. That proposed increase would fund all 264 contract towers currently in the program and allow the FAA to add other airports to the program during the next fiscal year. The House version of the bill proposes an even larger increase for contract towers at $256 million.
Contract Tower Briefing: In its report, the Committee “directs the FAA to brief the House and Senate Appropriations Committees within 60 days of enactment of this act on the expenditures related to the contract tower program from the most recent fiscal year. The briefing shall include information on all the costs attributed to the contract tower program, and at a minimum, provide a breakout for administrative costs, contract support expenses, insurance, equipment procured and installed in contract towers, new starts, and aggregate payments for operating the contract towers.”
Contract Tower Pilot Program: The FAA bill authorized funding for a new pilot program that would allow certain busy contract towers to convert to FAA-staffed facilities. The Senate version of the FY25 DOT spending bill proposes almost $6.3 million for that pilot program. The House version of the bill does not include funding for that effort. However, Reps. Greg Stanton (D-AZ) and Andy Biggs (R-AZ) filed an amendment that would provide $30 million for the pilot program.
Essential Air Service: The House bill includes $423 million in discretionary funding for the Essential Air Service Program. Coupled with an estimated $164.2 million from overflight fees, the overall funding level for EAS would rise to $587.2 million in FY25 – the same as the administration’s budget request and the House bill.
Small Community Air Service Development: As mentioned above, the Senate bill includes $15 million for the Small Community Air Service Development Program. This is same amount that Congress authorized for the program in the FAA bill and $5 million more than the current level.
Workforce
Controller Staffing: The bill includes almost $43 million for controller hiring and training “with the goal of hiring 2,000 new air traffic controllers in fiscal year 2025.” The report accompanying the bill states that the “Committee supports the FAA’s efforts to hire 2,000 new air traffic controllers in fiscal year 2025. The FAA will achieve this goal by expanding training at the FAA Academy and supplementing these efforts by expanding air traffic controller training at certain collegiate training initiative (CTI) schools.”
Aviation Workforce Development Programs: The Senate bill includes $25 million for three Aviation Workforce Development programs – one for pilots, one for mechanics, and another for aerospace workers. That is $10 million more than the House version of the bill.
Miscellaneous
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.
Airport Cooperative Research Program: As mentioned above, the House bill includes $15 million in AIP funding for the Airport Cooperative Research Program.
Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers Program at any airport.
UAS Test Sites: The bill includes $6 million “for providing matching funds to commercial entities that contract with an FAA-designated UAS test range to demonstrate or validate technologies that the FAA considers essential to the safe integration of UAS into the NAS.”
Remote Towers: The report accompanying the bill indicates that the Committee “is aware of the interest in remote tower systems to provide a safe, cost effective alternative to brick and mortar towers at small and non-towered airports.” It also states that the Committee “expects the FAA to transparently inform stakeholders of the development and validation of defined safety, performance, and functional requirements, as well as a defined process for approval.”
Additional Info
• A summary of the bill may be viewed here.
• Bill text may be viewed here.
• The committee report may be viewed here.
• The list of earmarks may be viewed here.
What’s Next?
As we mentioned yesterday, House leaders had planned to bring the House version of the DOT spending bill and other appropriations bills to the House floor before the August recess. But the appropriations process has stalled in that chamber over proposed funding cuts.
It is unlikely the Senate will consider any of their annual spending bills on the floor during the September session after lawmakers return from August recess. And we expect Congress will focus on passing a continuing resolution to fund the government after October 1st instead.
