Airport Alert: Biden Administration Unveils $2 Trillion Infrastructure Package; Plan Includes $25 Billion for Airport and Aviation Upgrades
March 31, 2021
President Biden today released the outline for his American Jobs Plan -- a $2 trillion infrastructure proposal that includes $25 billion to upgrade our nation's aviation system and billions more for highways, bridges, and transit systems. The proposal is likely to encounter stiff opposition from Republicans on Capitol Hill, who point out that Congress has already spent trillions of dollars in coronavirus relief funding in the past year.
After clearing the American Rescue Plan, the White House is beginning to turn its attention to recovery, rebuilding our nation's infrastructure, and creating good-paying jobs. On the airport front, the administration's plan calls on Congress to create a new terminal development program and to improve multi-modal connections. A White House fact sheet describes how airports in the United States are falling behind those in other countries:
"The United States built modern aviation, but our airports lag far behind our competitors. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide…. President Biden is calling on Congress to invest $25 billion in our airports, including funding for the Airport Improvement Program, upgrades to FAA assets that ensure safe and efficient air travel, and a new program to support terminal renovations and multimodal connections for affordable, convenient, car-free access to air travel."
As expected, the Biden plan focuses on ways to improve air quality, reduce greenhouse gas emissions and improve resilience to sea-level rise. It calls for more electric vehicles and charging ports to help meet the administration's goal of net-zero emissions by 2050. According to the White House, "investments in this historic plan make our infrastructure more resilient in the face of increasingly severe floods, wildfires, hurricanes, and other risks."
Biden's plan also calls for improving drinking water systems, expanding high-speed broadband to rural America, and upgrading schools, veterans' hospitals and other federal buildings. It proposes to retrofit more than two million homes and commercial buildings. And it calls for revitalizing American manufacturers and small businesses while investing in workforce development to create "good-quality union jobs for American workers."
What We Know Now
Transportation Funding: The administration's plan includes $621 billion for transportation infrastructure and resilience. Of that amount, $25 billion would be reserved to improve airports and our nation's aviation infrastructure, in part, by boosting AIP funding. However, the fact sheet the White House released today is light on details.
The infrastructure bill that the House passed last year (H.R. 2) proposed to increase AIP funding from $3.35 billion to $4 billion annually. It also proposed to provide airports with between $3 billion and $4 billion annually for supplemental grants with broader eligibility that would allow airports to use those additional funds for terminals and debt service. Under the House-passed bill, supplemental funds would include the following set asides:
Terminal Development and Multimodal Projects: As mentioned above, the administration is proposing a new terminal development program and to improve multi-modal connections. However, the White House has yet to release details.
Pay-fors: To help pay for the massive infrastructure package, the Biden administration is proposing to raise the corporate tax rate from 21 percent to 28 percent. It would also "strengthen the global minimum tax on U.S. multinational corporations."
What's Next?
The President is scheduled to discuss his infrastructure plan at an event in Pittsburgh this afternoon. We'll let you know if the administration releases any additional information later today.
Related Information
• A fact sheet of the administration's plan may be viewed here.
President Biden today released the outline for his American Jobs Plan -- a $2 trillion infrastructure proposal that includes $25 billion to upgrade our nation's aviation system and billions more for highways, bridges, and transit systems. The proposal is likely to encounter stiff opposition from Republicans on Capitol Hill, who point out that Congress has already spent trillions of dollars in coronavirus relief funding in the past year.
After clearing the American Rescue Plan, the White House is beginning to turn its attention to recovery, rebuilding our nation's infrastructure, and creating good-paying jobs. On the airport front, the administration's plan calls on Congress to create a new terminal development program and to improve multi-modal connections. A White House fact sheet describes how airports in the United States are falling behind those in other countries:
"The United States built modern aviation, but our airports lag far behind our competitors. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide…. President Biden is calling on Congress to invest $25 billion in our airports, including funding for the Airport Improvement Program, upgrades to FAA assets that ensure safe and efficient air travel, and a new program to support terminal renovations and multimodal connections for affordable, convenient, car-free access to air travel."
As expected, the Biden plan focuses on ways to improve air quality, reduce greenhouse gas emissions and improve resilience to sea-level rise. It calls for more electric vehicles and charging ports to help meet the administration's goal of net-zero emissions by 2050. According to the White House, "investments in this historic plan make our infrastructure more resilient in the face of increasingly severe floods, wildfires, hurricanes, and other risks."
Biden's plan also calls for improving drinking water systems, expanding high-speed broadband to rural America, and upgrading schools, veterans' hospitals and other federal buildings. It proposes to retrofit more than two million homes and commercial buildings. And it calls for revitalizing American manufacturers and small businesses while investing in workforce development to create "good-quality union jobs for American workers."
What We Know Now
Transportation Funding: The administration's plan includes $621 billion for transportation infrastructure and resilience. Of that amount, $25 billion would be reserved to improve airports and our nation's aviation infrastructure, in part, by boosting AIP funding. However, the fact sheet the White House released today is light on details.
The infrastructure bill that the House passed last year (H.R. 2) proposed to increase AIP funding from $3.35 billion to $4 billion annually. It also proposed to provide airports with between $3 billion and $4 billion annually for supplemental grants with broader eligibility that would allow airports to use those additional funds for terminals and debt service. Under the House-passed bill, supplemental funds would include the following set asides:
- 3.5 percent for cargo airports;
- 4 percent for general aviation, reliever and nonprimary commercial service airports; and
- 4.5 percent for environmental projects including airport emission reduction projects; airport resiliency projects; airport noise and mitigation planning, programs and projects; and other airport projects that "reduce the adverse effects of airport operations on the environment and surrounding communities...."
Terminal Development and Multimodal Projects: As mentioned above, the administration is proposing a new terminal development program and to improve multi-modal connections. However, the White House has yet to release details.
Pay-fors: To help pay for the massive infrastructure package, the Biden administration is proposing to raise the corporate tax rate from 21 percent to 28 percent. It would also "strengthen the global minimum tax on U.S. multinational corporations."
What's Next?
The President is scheduled to discuss his infrastructure plan at an event in Pittsburgh this afternoon. We'll let you know if the administration releases any additional information later today.
Related Information
• A fact sheet of the administration's plan may be viewed here.
