Airport Alert: Bipartisan Infrastructure Bill Signed Into Law, Unlocking $25 Billion in Airport and Aviation System Investment
November 15, 2021
At a White House ceremony this afternoon, President Biden signed into law H.R. 3684, the Infrastructure Investment and Jobs Act. Enactment of the bipartisan infrastructure package will result in an historic investment of $25 billion over five years for aviation system and airport infrastructure upgrades, including $15 billion for a new airport infrastructure grant program to support a broad array of projects at commercial and general aviation airports; $5 billion for an airport terminal competitive grant program; and $300 million in dedicated funding to help contract tower airports upgrade aging air traffic control facilities. Additional details of the airport and aviation-related provisions in the Act are included below.
AAAE President and CEO Todd Hauptli attended the White House ceremony this afternoon, along with other industry, government, and congressional leaders.
Following the ceremony today, Hauptli sent a letter to Transportation Secretary Pete Buttigieg, applauding the Biden Administration and lawmakers from both sides of the aisle for prioritizing infrastructure development with passage of the bipartisan infrastructure bill. Hauptli emphasized that the funding will help both large and small airports address a backlog of projects to better prepare for the future and create high paying jobs. "From terminals to tarmacs, this legislation will fuel tens of billions of dollars in critical federal investments in airports that will pay huge dividends for travelers, workers, communities, and the environment, both in the near-term and for years to come," Hauptli wrote.
He added, "To maximize the benefits of the funding provided by the legislation, we urge DOT and FAA to continue working closely with the airport community to distribute funding to commercial service, general aviation, and contract tower airports as quickly as possible and with as much flexibility as possible. Airports are eager to move forward with critical projects to meet the challenges of today and to prepare for a bright future ahead. AAAE stands ready to partner with and assist DOT and FAA in any way we can."
Yesterday, the White House announced that former New Orleans Mayor Mitch Landrieu will be the senior advisor responsible for coordinating implementation of the bipartisan infrastructure law. Today, the White House issued an Executive Order establishing a Infrastructure Implementation Task Force to be co-chaired by Landrieu and National Economic Council director Brian Deese. Members of the Task Force include DOT Secretary Buttigieg, Environmental Protection Agency Administrator Michael Regan, and other agency and White House officials. The group is charged with "delivering on the biggest investments in roads, bridges, and rail in generations; investments in ports and airports, the biggest investment in mass transit in American history, investments that stop our children from drinking poisoned water, unprecedented clean energy and climate resilience investments, and investments that connect every American to high-speed internet."
We will keep you apprised of all relevant activities relating to implementation in the days ahead. Our sincere appreciation for your assistance in delivering on $20 billion in critical airport investment.
Infrastructure Investment and Jobs Act – Airport and Aviation Provisions
- 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.
