Airport Alert: House Transportation Committee Approves Early Incentive Bill

March 24, 2021

The House Transportation and Infrastructure Committee today approved by voice vote a bill that would allow airports to use Airport Improvement Program funds for early incentive payments. Meanwhile, the Senate Commerce Committee approved the nomination of Polly Trottenberg to be Deputy Secretary of Transportation and held a hearing on surface transportation infrastructure.

Early Incentive Bill

Transportation and Infrastructure Committee Ranking Member Sam Graves (R-MO) and Aviation Subcommittee Ranking Member Garret Graves (R-LA) earlier this year introduced H.R. 468, the Expedited Delivery of Airport Infrastructure Act of 2021. At today's markup, full committee Ranking Member Sam Graves discussed the advantages of early incentive payments. 

"The benefits of incentive payments are well known in the surface transportation sector, and this bill is going to allow airports … to expedite the delivery of airport projects, Ranking Member Sam Graves said. "It takes better advantage of short construction seasons, and it relieves operational disruptions that always occur, always result from these projects at an airport."

AAAE and ACI-NA support the bill and began pushing for the change during consideration of the last FAA reauthorization bill. We continue to point out that this option could be helpful to airports and especially those in northern tier states with short construction cycles.  

Chairman Peter DeFazio (D-OR) today also voiced his support for the legislation, but he highlighted the need to increase investment in airport infrastructure. DeFazio noted that many airports were over capacity before the pandemic began and pointed out that AIP funds and Passenger Facility Charges that airports traditionally receive are not nearly enough to cover their annual infrastructure needs.

"So, while this bill makes strides in the right direction, I believe it will be incredibly difficult to complete airport projects quicker without first providing robust funding, DeFazio said.  "This will be one of my priorities as the committee begins to move forward on the next infrastructure bill."
 
Senate Commerce Committee Approves Trottenberg

On the other side of the Capitol, the Senate Commerce Committee this morning approved the nomination of Polly Trottenberg, President Biden's pick to serve as Deputy Secretary of Transportation. The vote was 24 to 4.  

Chair Maria Cantwell (D-WA) called Trottenberg "extremely well-qualified for this job with 30 years of transportation expertise under her belt." Trottenberg most recently served as New York City Transportation Commissioner.

At her nomination hearing earlier this month, Senator Ted Cruz (R-TX) questioned Trottenberg's support for innovation based on how New York City handled ride-share companies. Cruz was one of four Republicans who opposed her nomination. 

Senate Commerce Committee Holds Surface Transportation Infrastructure Hearing
 
After the executive session, the Senate Commerce Committee held a hearing entitled, "Driving the Road to Recovery: Rebuilding America's Transportation Infrastructure."  Lawmakers focused on surface transportation infrastructure needs.  

Ranking Member Roger Wicker (R-MS) called for a bipartisan approach to infrastructure and made a pitch for S. 479, the LOCAL Infrastructure Act -- a bipartisan bill he recently introduced that would restore advance refunding bonds. If enacted into law, the AAAE-backed proposal would help airports finance critical infrastructure projects and take advantage of low interest rates.

Former DOT Deputy Secretary John Pocari, who now serves as Managing Partner at 3P Enterprises, called for a competitive grant program to increase investment in infrastructure electrification. He suggested that airports would "benefit on the air side in the short term from electrification of tugs and ground handling equipment, and land side airport projects that provide electrified, portal to portal transit for passengers and employees."