Airport Alert: House Passes Bipartisan Infrastructure Bill, Measure Moves to President to be Signed into Law
After months of political gamesmanship, party infighting and numerous stalled efforts, today, the House finally passed the $550 billion Infrastructure and Investment Act, better known as the bipartisan infrastructure bill (BIB), by a vote of 228-206. The bill now goes to the president's desk for signature, bringing with it billions of dollars in new federal investment on core infrastructure including airports, roads, bridges, ports, and broadband.
AAAE President and CEO Todd Hauptli issued the following statement regarding passage of the BIB: "As millions of Americans prepare to ‘pack their patience' and gear-up for Holiday travel, they can add-in a large helping of gratitude as Congress has FINALLY passed a long-overdue and very much needed infrastructure bill, ensuring billions of dollars of airport projects can move forward without undue delay. These projects will benefit travelers, workers, and communities across the country. Nothing is easy in Washington these days, but concrete knows no political affiliation. This is a win for all Americans."
Airport/Aviation Funding Provisions in the Bipartisan Infrastructure Bill
Overall Funding:
- $15 billion for airport infrastructure grants (distributed by formula w/local match requirements)
- $5 billion for a new "airport terminal program" (distributed by DOT, competitive grants w/local match requirements)
- $5 billion for FAA Facilities and Equipment
- Primary Airports:
- $12.4 billion/$2.48 billion annually for primary commercial service airports.
- Project Eligibility: Unlike the regular AIP program, airports would be allowed to use these federal funds for terminals and other PFC-eligible projects except debt service.
- Distribution: Modified AIP apportionment run similar to CRSSA and ARPA coronavirus relief bills with remaining funds via enplanements. FAA to use enplanements in CY 2019 to determine funding in FYs 2022, 2023; funding in FYs 24, 25, 26 based on the most recent calendar year.
- Local Match: Same as AIP.
- Non-Primary Commercial Service/General Aviation Airports:
- $2.5 billion/$500 million annually for GA and nonprimary commercial service airports.
- Distribution: Similar to CRSSA, ARPA, distribution based on NPIAS categories; any non-distributed funds designated for Contract Tower airports for projects.
- Local Match: Same as AIP.
- Contract Tower Airports:
- $100 million/$20 million annually for Contract Tower Program/Cost-Share Program to upgrade aging airport-owned ATC towers and to purchase equipment for those facilities.
- Competitive grants to CT airports to "sustain, construct, repair, improve, rehabilitate, modernize, replace or relocate nonapproach control towers; acquire and install ATC equipment; or construct FAA-certified remote towers.
- Local Match: None, Federal share is 100 percent.
- Competitive Grants: DOT to distribute funds through competitive grant program
- Distributed by Hub Size:
- 55% to LH
- 15% to MH
- 20% to SH
- 10% to NH and nonprimary airports
- Eligible Projects: Terminal projects, including multimodal terminal development/on-airport rail projects. DOT required to consider projects that increase capacity, improve passenger access, replace aging infrastructure, expand accessibility for persons with disabilities, and improve airport access for historically disadvantaged populations.
- Preferences and Priorities: DOT to provide a preference to projects that "achieve a complete development objective" even if those projects are phased over multiple years. It would also require DOT to prioritize projects that "have received partial awards."
- Local Match: Federal share is 80% for LH, MH and 95% for SH and smaller.
- At least $200 million reserved for airports that participate in the FAA Contract Tower Program to upgrade aging FAA-owned ATC facilities.
While infrastructure has long been seen as one of the last remaining bipartisan issues in Washington, the path to enactment for a major infrastructure bill this Congress was always considered dicey, particularly given the slim Democratic majorities in both the House and Senate. Still, in late March, in an effort to fulfill a key campaign priority, President Biden released his $2.3 trillion American Jobs Plan, which kickstarted infrastructure negotiations with Senate Republicans. While these initial negotiations quickly came to an impasse due to irreconcilable positions on the size, scope and pay-fors, subsequent negotiations between the White House and a bipartisan group of senators proved more productive. After weeks of painstaking negotiations over this summer, the Senate passed the BIB in August with broad bipartisan support.
However, instead of quickly passing the BIB following Senate action, Democratic leaders continued to politically link the BIB with a larger, reconciliation package, which they coined the "two-track process." While this strategy was conjured as a way to unite both wings of the Democratic Party to support both pieces of legislation, it instead led to months of contentious infighting between moderates and progressives. This fall, House Leadership, not once, but twice, scheduled votes on the BIB, only to pull the votes later due to progressives withholding their support until the reconciliation package was finalized. It took huge losses by Democrats in off-year elections for House leadership to ultimately break the logjam and pass the BIB.
All of that said, today's passage of the BIB, and the $20 billion in new federal spending for airport infrastructure that comes with it over the next five years, represents a historic investment in airport infrastructure. This, combined with the COVID-19 federal relief secured over the last 18 months, have resulted in $40 billion in federal support for airports outside of traditional funding. This success story is directly related to persistent efforts from airports, both large and small, to reach out and advocate to lawmakers on Capitol Hill. We are grateful for your continued support and engagement. We will be sure to provide more details as we learn how the BIB will be implemented going forward.
Build Back Better Reconciliation Package
In order to unlock progressive support to get the BIB across the finish line, the House also passed a rule that would tee up debate on the reconciliation bill in the future. Additionally, progressives demanded that moderates provide them concrete assurances that they will vote, by the week of November 15 for the reconciliation package in its current form as long as the Congressional Budget Office (CBO) confirms the $1.75 trillion price tag. While House moderates ultimately agreed to these stipulations, they remain hesitant to support controversial provisions in the House reconciliation package given that the legislation will likely undergo further changes when it is considered by the Senate. We will keep you apprised of further updates on the Build Back Better legislation."