Action Alert: Lawmakers Unveil FY21 Omnibus Spending Bill

December 21, 2020

Lawmakers today unveiled a $1.4 trillion Fiscal Year 2021 omnibus appropriations package that includes $400 million in supplemental AIP funding; a $2.8 million increase for contract towers; and funding for law enforcement officers and exit lane staffing. Congress plans to clear the massive spending bill as early as tonight along with a $900 billion coronavirus relief package.  
 
On the DOT front, the massive omnibus spending package includes $3.35 billion for the traditional AIP account and an additional $400 million for supplemental discretionary grants. It also includes the AIR Act, a AAAE-backed bill that would ensure that airports aren't unfairly penalized because of the dramatic decline in passengers and operations during the pandemic. 

The omnibus also includes funding for airport priorities at DHS.  It includes $46.4 million for the LEO Reimbursement Program, rejecting the administration's proposal to eliminate funding for this program.  It also contains $87.2 million above the administration's budget request to fund additional front line screener personnel to continue exit lane staffing at airports.  The measure also directs TSA to provide a briefing to Congress on the agency's proposed ASP national amendment regarding airport worker screening, including the full impact, costs, and benefits of the proposal on all affected airports. 
 
DEPARTMENT OF TRANSPORTATION
 
Funding for FAA Programs
 
Traditional Airport Improvement Program:  The omnibus includes $3.35 billion for the traditional AIP account in FY21 – the same as the current funding level. Of that amount, $119.4 million would go toward administrative expenses, $15 million for the Airport Cooperative Research Program, approximately $40.7 million for Airport Technology Research, and $10 million for the Small Community Air Service Development Program.  
 
Supplemental Airport Improvement Program:  The omnibus includes an additional $400 million in supplemental AIP discretionary grants – the same amount approved for FY20.  
 
FAA Operations: The omnibus proposes slightly more than $11 billion for FAA operations. 
 
Facilities and Equipment: The final bill proposes slightly more than $3 billion for FAA facilities and equipment, including NextGen programs. 

Research, Engineering, and Development: The measure includes $198 million for research, engineering, and development. 
 
Airport Improvement Program
 
Continued EDS Prohibition: The omnibus 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 omnibus 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.  However, it does not include language that would eliminate the local match for FY21-funded projects as AAAE is recommending to help airports during the pandemic. 
 
Discretionary Grants:  The agreement 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.' 

Burdensome Regulations:  The joint explanatory statement accompanying the package 'recommends the FAA identify opportunities to eliminate unnecessary regulations and streamline burdensome regulations and identify areas where more autonomy can be given to local jurisdictions with a better understanding of needs and challenges in building and maintaining infrastructure.' 

Boarding Bridges:  The agreement directs the FAA to consult with the U.S. Trade Representative and the U.S. Attorney General to develop a list of entities that are: 1) foreign State-owned enterprises and 2) have been determined by a Federal court to have misappropriated trade secrets of U.S. companies. 
 
NPIAS:  The agreement 'directs the FAA to expeditiously review requests for entry into the NPIAS. Public-use airports that meet all applicable criteria and which have had significant and material investment from their local communities should be included in the NPIAS.' 
 
Use of Airport Revenue/Local Sales Taxes: The joint explanatory statement encourages DOT to continue working with State and local governments and the FAA to develop a 'path forward to allow the use of local sales tax revenues generated on the sale of aviation fuel to be used in a manner consistent with their enactment.'   
 
Small Community Programs
 
Contract Towers: The final measure includes $172.8 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs – $2.8 million more than the current level.  Lawmakers direct FAA to 'continue to operate the 256 contract towers currently in the program, including the contract tower cost share program, as well as to expeditiously add qualified eligible airports.' 
 
The measure prevents the FAA from using funds in the bill 'to withhold from consideration and approval any new application for participation in the Contract Tower Program, or for reevaluation of Cost-share Program participants….' The joint explanatory statement also directs the FAA to 'provide flexibility to contract towers at small-hub airports with unique terrain and winter weather challenges so they include a minimum of two controllers during all regularly scheduled commercial flights, where permissible under current law.'

Essential Air Service: The final measure includes slightly more than $141.7 million in discretionary funding for the Essential Air Service Program – the same as the administration's budget request. Coupled with an estimated $154.3 million from overflight fees, the overall funding level for EAS would be approximately $296 million in FY21.  The final measure would waive the 15-passenger seat requirement.  
 
Additional EAS Funds:  The bill also includes an additional $23.3 million for the Essential Air Service and Rural Improvement Fund to offset the loss in revenue from mandatory overflight fees during the pandemic. This is the same amount that lawmakers included in the bipartisan and bicameral coronavirus relief package. 
 
Small Community Air Service Development: The final measure includes $10 million for the Small Community Air Service Development Program. This is the same amount that Congress approved for the program in FY20 and $10 million more than the administration requested.  
 
Remote Towers:  The measure includes not less than $6 million and up to $9 million to 'continue implementation of the remote tower pilot program….' 
 
Miscellaneous

Cost Free Space: The final 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 measure includes $15 million in AIP funding for the Airport Cooperative Research Program – the same level as the House-passed bill. 
 
Airport Technology Research/PFAS:  The agreement includes not less than $40.7 million in AIP funding for Airport Technology Research Program. The joint explanatory statement notes that its recommendation 'supports the budget request for research efforts related to the replacement of perfluoroalkyl or polyfluoroalkyl substances and directs the FAA to brief the House and Senate Committee on Appropriations on the testing and development of new firefighting performance requirements for the use of compressed air foam system technology in aircraft rescue and firefighting.' 
 
Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers program at any airport.   
 
AIR Act:  The bill includes the AIR Act – a AAAE-backed bill that would ensure that airports aren't unfairly penalized because of the dramatic decline in passengers and operations during the pandemic. The bipartisan measure was introduced by Senator Deb Fisher (R-NE) and Senate Aviation Subcommittee Ranking Member Krysten Sinema (D-AZ). 
 
AIP Apportionments:  The AIR Act 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.
 
Transportation Demonstration Program:  The bill includes $100 million 'to expand intermodal and multimodal freight and cargo transportation infrastructure….' DOT would be required to distribute the funds as discretionary grants to maritime port authorities or former military airports classified as GA airports. Eligible airports must be located 'not more than 10 miles from a maritime port authority that uses a terminal railway.' 

Department of Homeland Security

The omnibus spending bill provides a total of $69 billion in discretionary appropriations for DHS and restores funding for numerous key programs to airports within TSA and U.S Customs and Border Protection.

Funding for Transportation Security Administration Programs

The bill provides a total of $7.96 billion in discretionary appropriations for TSA, which is $325 million (or 4 percent) above the administration's request. Once again, the administration's request to increase the aviation security fee by $1.00 in FY21 was rebuffed. Specific funding levels and key details are as follows:

Law Enforcement Officer (LEO) Reimbursement Grants:
The recommendation includes $46.4 million for LEO Reimbursement Program, rejecting the administration's proposal to eliminate funding for this program.   

TSA Staffing of Exit Lanes:
The bill provides $87.2 million above the budget request to fund front line screener personnel to continue exit lane staffing at airports where TSA was responsible for monitoring on December 1, 2013, and continues statutory language that prohibits TSA from abrogating this responsibility. The joint explanatory statement requires TSA to be responsible for monitoring exit lanes after remodeling or modernization efforts are completed if the agency was responsible for monitoring those exit lanes on December 1, 2013. 

Visible Intermodal Prevention Response (VIPR) Teams: The bill provides $61.8 million to maintain 31 VIPR teams instead of eliminating funding for these teams.   

Computed Tomography (CT) and Credential Authentication Technologies (CAT):  In total, the bill provides $100 million for the procurement and deployment of CT and CAT systems. The agency must propose how these funds are to be allocated within 45 days. The joint explanatory statement directs TSA to consider small and rural airports, in addition to larger airports, when determining locations for deployment of CT and CAT systems.  Additionally, TSA is required to identify the airports at which CAT is currently deployed, airports at which CAT is not currently deployed, and a plan for the full procurement and deployment of CAT systems at all U.S. airports within 90 days after enactment of this Act. 

Touchless Screening:  TSA is directed to provide a report within 60 days that details 'current efforts to ensure checkpoints are sanitary; initiatives to limit interactions that are not conducive to a touchless screening environment between passengers and TSOs without adversely impacting the core security mission; and proposals for procurement and acquisition of available technologies to promote a touchless screening environment.' 

Explosives Detection Systems (EDS) Reimbursements: The bill includes $30 million for reimbursements to airports for costs incurred to purchase of legacy in-line explosive detection equipment prior to August 3, 2007.  TSA is required to brief the Appropriations Committees within 60 days on an updated timeline and allocation plan for EDS reimbursement funds. 

TSA Workforce: The omnibus agreement does not include funding requested for anticipated passenger volume growth in FY21 in light of current reductions in passenger volume and directs TSA to make the Committees aware of any analysis that forecasts long-term passenger volume.  However, the final agreement did include $36.3 million to improve the agency's efforts to retain, hire, and train Transportation Security Officers (TSOs) through service pay reforms and career progression efforts. The joint explanatory statement directs TSA to report on the effect of pay reform on TSO retention levels. 

Screening Partnership Program (SPP): The omnibus allocates $226.4 million for the SPP program, matching the level provided in FY20.   

Aviation Worker Screening: Prior to any final decision on implementation of the proposed ASP National Amendment, TSA-NA-20-02-Aviation Worker, TSA is required to brief the Appropriations Committee on 'TSA's process to date, any outstanding issues or comments, and proposed timelines and activities for implementation of the program. The briefing shall also address the full impact, costs, and benefits of this proposal on all affected airports.' 

Airport Operations Centers (AOCs): TSA is directed to brief the Appropriations Committees not later than 90 days after the date of enactment of this Act on its response to recommendations to establish full-time AOCs at airports. The briefing should address the feasibility of providing TSA financial assistance to establish AOCs through the use of appropriated resources or the Aviation Security Capital Fund.  

Reimbursable Service Agreements Outside of Primacy Passenger Terminals: The bill includes statutory language that extends a reimbursable service agreement pilot program for screening outside of existing primary passenger terminals through 2023. This pilot, first authorized in 2019, was set to expire in 2021. 

Funding for U.S. Customs and Border Protection Programs 

The bill provides $15.28 billion in discretionary appropriations for CBP, which is $520 million below the administration's request.  

CBP Officers: The bill does not include any funding to hire new CBP officers in FY21; however, it sustains funding levels for officers first hired during calendar years 2019 and 2020.  The administration assumed an increase in user fees would fund these officers but Congress has once again rejected this fee increase proposal. 

User Fee Shortfalls: The omnibus spending bill provides $840 million in emergency appropriations to help offset the loss of customs and immigration fee revenue associated with the pandemic. These fees fund 40 percent of all CBP officers, including those at airports. 

Overtime: The bill retains the overtime cap at $45,000 and continues to permit the Secretary to waive this cap on an individual basis.   

Reimbursable Services Programs: The joint explanatory statement concurs with Senate language on reimbursable service agreements that stated these programs 'should not supplant baseline service levels' but instead should be 'used to supplement enhancement requests for service that CBP would be otherwise unable to perform.' CBP must provide 'each port operator with information on baseline service levels and report to the Committee quarterly on CBP's adherence to these baseline service levels.'  

REAL ID

In the joint explanatory statement accompanying the omnibus spending bill, the Secretary of DHS, in conjunction with TSA and other appropriate components, is directed to make every effort to support the needs of states related to the REAL ID transition.

In addition, the final omnibus spending package includes a number of authorizations outside of the Appropriations Committee's jurisdiction. One of note is the REAL ID Modernization Act, which simplifies the process of applying for a REAL ID. Specifically, individuals would no longer have to present their Social Security card or Social Security number to comply with the original REAL ID Act and states could accept proof of identity and lawful status electronically. Additionally, the Act allows TSA and other federal agencies to accept mobile or digital drivers' licenses or identity cards for identification purposes.  Finally, the legislation requires aircraft operators and third-party reservation entities to notify passengers about REAL ID requirements for 15 months, beginning 90 days before the date Federal agencies will no longer accept for official purposes drivers' licenses or identification cards that are not REAL ID-compliant. Currently, that enforcement date is October 1, 2021.