Airport Alert: Lawmakers Propose $4 Billion for Airports; Release Details on Bipartisan Coronavirus Relief Package
December 14, 2020
A bipartisan and bicameral group of lawmakers today released details and bill language on a $908 billion coronavirus relief package that includes $4 billion for airports and concessionaires and $17 billion to airlines to continue the Payroll Support Program through March. The move comes as lawmakers are trying to find a way to provide COVID-19 relief before Congress adjourns for the year.
Leaders of the bipartisan group decided to split their relief package into separate bills. The first, which has a price tag of $748 billion, contains funding for transportation and other less controversial COVID-19 proposals. The other is a $160 billion bill that includes liability protection – a top priority for Republicans and funding for state and local governments – a top priority for Democrats. These two issues have stymied progress on a broader package for months.
In a statement following the release of the package and proposed aviation funding, AAAE President and CEO Todd Hauptli said that 'The funding proposed today would help airports protect jobs, continue public health enhancements, maintain critical operations, and meet ongoing obligations. While the needs at airports and across the aviation industry far exceed what Congress can address at this point, we are grateful to the bipartisan, bicameral group for their leadership and look forward to working with them and the Congress to get relief enacted before the end of the lame duck session.'
It is unclear how Congressional leaders and rank-and-file members will react to this new bifurcated plan. Senate Majority Leader Mitch McConnell (R-KY) previously proposed doing away with the liability protection and funding for state and local governments. But his suggestion was quickly swatted down by Democratic leaders. Yesterday, House Majority Leader Steny Hoyer (D-MD) seemed more open to the idea and pointed out that Democrats will not get everything they want in the next relief package.
There are other potential complications, too. The bipartisan and bicameral plan reportedly does not include stimulus checks that the White House and some lawmakers say should be included in the next relief package. The White House is proposing $600 stimulus checks for individuals. Meanwhile, Senator Bernie Sanders (I-VT) and a diverse section of lawmakers is proposing to raise that amount to $1,200.
Aviation Provisions
Airport Funding: The bill includes an additional $4 billion to help airports prevent, prepare for, and respond to coronavirus. That amount also includes set asides for concessionaires, Essential Air Service and the Small Community Air Service Development Program. Notably, the bill makes the funding available only until September 30, 2021.
Minimum Air Service Guarantees: Like the CARES Act, the bill includes a provision that would authorize DOT to 'require, to the extent reasonable and practicable, an air carrier provided financial assistance under this subchapter to maintain scheduled air transportation, as the Secretary of Transportation determines necessary to ensure services to any point served by that air carrier before March 1, 2020.'
The bill also includes new language that would require the agency to 'take into consideration the air transportation needs of small and remote communities, the need to maintain well-functioning health care supply chains, including medical devices and supplies, and pharmaceutical supply chains.'
Request
We urge you again to reach out to your respective lawmakers as soon as possible and ask them to support addition funding in the next coronavirus relief package for airports and our partners in the aviation industry. A previous Action Alert includes contact information and talking points to help with your communication.
A bipartisan and bicameral group of lawmakers today released details and bill language on a $908 billion coronavirus relief package that includes $4 billion for airports and concessionaires and $17 billion to airlines to continue the Payroll Support Program through March. The move comes as lawmakers are trying to find a way to provide COVID-19 relief before Congress adjourns for the year.
Leaders of the bipartisan group decided to split their relief package into separate bills. The first, which has a price tag of $748 billion, contains funding for transportation and other less controversial COVID-19 proposals. The other is a $160 billion bill that includes liability protection – a top priority for Republicans and funding for state and local governments – a top priority for Democrats. These two issues have stymied progress on a broader package for months.
In a statement following the release of the package and proposed aviation funding, AAAE President and CEO Todd Hauptli said that 'The funding proposed today would help airports protect jobs, continue public health enhancements, maintain critical operations, and meet ongoing obligations. While the needs at airports and across the aviation industry far exceed what Congress can address at this point, we are grateful to the bipartisan, bicameral group for their leadership and look forward to working with them and the Congress to get relief enacted before the end of the lame duck session.'
It is unclear how Congressional leaders and rank-and-file members will react to this new bifurcated plan. Senate Majority Leader Mitch McConnell (R-KY) previously proposed doing away with the liability protection and funding for state and local governments. But his suggestion was quickly swatted down by Democratic leaders. Yesterday, House Majority Leader Steny Hoyer (D-MD) seemed more open to the idea and pointed out that Democrats will not get everything they want in the next relief package.
There are other potential complications, too. The bipartisan and bicameral plan reportedly does not include stimulus checks that the White House and some lawmakers say should be included in the next relief package. The White House is proposing $600 stimulus checks for individuals. Meanwhile, Senator Bernie Sanders (I-VT) and a diverse section of lawmakers is proposing to raise that amount to $1,200.
Aviation Provisions
Airport Funding: The bill includes an additional $4 billion to help airports prevent, prepare for, and respond to coronavirus. That amount also includes set asides for concessionaires, Essential Air Service and the Small Community Air Service Development Program. Notably, the bill makes the funding available only until September 30, 2021.
- Commercial Service Airports: Of the $4 billion, not less than $3.407 billion would be reserved for commercial service and certain cargo airports. Airports would be allowed to use funds for 'costs related to operations, cleaning, sanitization, janitorial services, combating the threat of pathogens at the airport, and debt service payments.'
- Funds would be distributed based on a modified AIP apportionment run. The cargo set-aside would remain intact, and there would be no maximum grant amount or PFC turnback. It would preserve doubled entitlements and retain the $1 million minimum entitlement for smaller primary airports. Any remaining funds would be distributed based on enplanements.
- General Aviation Airports: The bill includes up to $50 million for nonprimary commercial service and general aviation airports. Of that amount, $8.15 million would be reserved for contract tower airports.
- Concessionaries: The measure provides $500 million to primary airports 'to provide relief from rents and minimum annual guarantees to on-airport car rental, on-airport parking, and in-terminal airport concessions.' The measure calls for airports to provide relief 'to each eligible airport concession in an amount that reflects each eligible airport concession's proportional share of the total amount of the rent and minimum annual guarantees of all the eligible airport concessions at such airport.' Airports could keep up to two percent of these funds to administer the relief.
- The bill includes two other conditions prioritizing relief from rent and minimum annual guarantees to minority-owned business and precluding airport concessions that have received 'a second draw or assistance' from the Paycheck Protection Program that has been applied to rent or minimum annual guarantee costs.
- Federal Share: Like the CARES Act, grants under this new proposal would not require a local match.
- Eligibility: Any airport that received more than four years of operating expenses under the CARES Act would be ineligible for these funds.
- Workforce Retention: The bill requires all airports except for nonhub or nonprimary airports that receiving funding to "continue to employ, through March 31, 2021, at least 90 percent of the number of individuals employed (after making adjustments for retirements or voluntary employee separations) by the airport as of March 27, 2020." Similar to the CARES Act, the workforce retention requirement may be waived by the Secretary of Transportation if a determination is made that the airport is 'experiencing economic hardship as a direct result of the requirement, or the requirement reduces aviation safety or security.'
- Small Community Air Service Development: The bill includes a Senator Jeanne Shaheen (D-NH) proposal that would provide an additional $20 million for a revised Small Community Air Service Development Program. The new initiative would focus on helping small communities that have had air service reduced or eliminated during the pandemic. Her proposal calls for an expedited application and review process and would eliminate the strings and restrictions attached to the traditional program.
- Essential Air Service: The bill includes an additional $23 million for the Essential Air Service and Rural Improvement Fund.
- AIP Apportionments: The AIR Act would ensure that airports receive their fair share of AIP entitlements for critical safety and security projects. Specifically, it would allow AIP apportionments in Fiscal Years 2022 and 2023 to be based on higher passenger numbers in Calendar Years 2018 or 2019 – whichever is higher – rather than Calendar Years 2020 or 2021.
- Contract Towers: The bill would also protect airports that participate in the Contract Tower Program. The last FAA reauthorization bill included a welcome provision that eliminated the benefit-cost analysis (BCA) requirement for airports that participate in the program unless they have more than a 25 percent decrease in operations in a single year. Because of the precipitous decline in operations this year, many airports that participate in the Contract Tower Program could be subject to a BCA because of an unforeseen global pandemic. The AIR Act would temporarily suspend the BCA requirement and ensure that airports are not required to come up with scarce local funds to participate in this critical safety program.
Minimum Air Service Guarantees: Like the CARES Act, the bill includes a provision that would authorize DOT to 'require, to the extent reasonable and practicable, an air carrier provided financial assistance under this subchapter to maintain scheduled air transportation, as the Secretary of Transportation determines necessary to ensure services to any point served by that air carrier before March 1, 2020.'
The bill also includes new language that would require the agency to 'take into consideration the air transportation needs of small and remote communities, the need to maintain well-functioning health care supply chains, including medical devices and supplies, and pharmaceutical supply chains.'
Request
We urge you again to reach out to your respective lawmakers as soon as possible and ask them to support addition funding in the next coronavirus relief package for airports and our partners in the aviation industry. A previous Action Alert includes contact information and talking points to help with your communication.
