Airport Alert: Biden Administration Unveils More Details on Infrastructure Plan
April 7, 2021
As we reported, President Biden last week released the American Jobs Plan -- a $2.3 trillion infrastructure proposal that calls for $25 billion to upgrade our nation's aviation system, billions more for transportation and infrastructure projects, and funding for a broad list of other initiatives. Today, we're learning a little more about the transportation portion of the administration's plan.
The American Jobs Plan includes $571 billion in proposed funding for transportation infrastructure and another $50 billion to improve infrastructure resilience. Of the overall amount for transportation, $25 billion would be reserved for airports and our nation's aviation infrastructure. As we reported last week, the administration is proposing a new terminal development program and to improve multi-modal connections. However, the previous fact sheet was light on specifics.
The administration today released details on how the White House is proposing to allocate the $25 billion for aviation and funding for other modes of transportation. According to a two-page summary, $10 billion would go toward the Airport Improvement Program, $10 billion would be designated for "airport terminal renovation grants," and another $5 billion is proposed for "FAA National Airspace System Facilities."
The White House plan is somewhat similar to H.R. 2, the infrastructure bill that House Democrats passed last year on a party-line vote. That bill – which is expected to serve as the starting point for this year's House infrastructure proposal – called for increasing AIP funding from $3.35 billion to $4 billion annually over five years – a $3.25 billion total gain. It also proposed to provide airports with between $3 billion and $4 billion annually for supplemental grants during the same timeframe for another $17.5 billion.
Total airport funding proposed last year in H.R. 2 would be $20.75 billion above current AIP authorization levels compared to $20 billion in the White House plan. As we have pointed out, last year's House-passed bill also included broader eligibility to allow airports to use the supplemental funds for terminals and debt service.
The White House is proposing $115 billion for roads and bridges; $85 billion for transit; $80 billion for rail projects; and another $15 billion for ports and waterways. The American Jobs Plan also includes $160 billion for electrifying vehicles, $44 billion for "accelerating transformative projects, and $1.6 billion to "reauthorize and expand Private Activity Bonds."
There is a long way to go and many, many hurdles to overcome before a broad infrastructure package becomes law, but it is helpful that both the administration and many on Capitol Hill continue to call for significant increases in federal investment in airports. We remain strongly supportive of those efforts to boost funding in the near-term and continue to argue that a long overdue adjustment to the local PFC cap could create a sustainable, long-term revenue stream for necessary airport investments.
As we reported, President Biden last week released the American Jobs Plan -- a $2.3 trillion infrastructure proposal that calls for $25 billion to upgrade our nation's aviation system, billions more for transportation and infrastructure projects, and funding for a broad list of other initiatives. Today, we're learning a little more about the transportation portion of the administration's plan.
The American Jobs Plan includes $571 billion in proposed funding for transportation infrastructure and another $50 billion to improve infrastructure resilience. Of the overall amount for transportation, $25 billion would be reserved for airports and our nation's aviation infrastructure. As we reported last week, the administration is proposing a new terminal development program and to improve multi-modal connections. However, the previous fact sheet was light on specifics.
The administration today released details on how the White House is proposing to allocate the $25 billion for aviation and funding for other modes of transportation. According to a two-page summary, $10 billion would go toward the Airport Improvement Program, $10 billion would be designated for "airport terminal renovation grants," and another $5 billion is proposed for "FAA National Airspace System Facilities."
The White House plan is somewhat similar to H.R. 2, the infrastructure bill that House Democrats passed last year on a party-line vote. That bill – which is expected to serve as the starting point for this year's House infrastructure proposal – called for increasing AIP funding from $3.35 billion to $4 billion annually over five years – a $3.25 billion total gain. It also proposed to provide airports with between $3 billion and $4 billion annually for supplemental grants during the same timeframe for another $17.5 billion.
Total airport funding proposed last year in H.R. 2 would be $20.75 billion above current AIP authorization levels compared to $20 billion in the White House plan. As we have pointed out, last year's House-passed bill also included broader eligibility to allow airports to use the supplemental funds for terminals and debt service.
The White House is proposing $115 billion for roads and bridges; $85 billion for transit; $80 billion for rail projects; and another $15 billion for ports and waterways. The American Jobs Plan also includes $160 billion for electrifying vehicles, $44 billion for "accelerating transformative projects, and $1.6 billion to "reauthorize and expand Private Activity Bonds."
There is a long way to go and many, many hurdles to overcome before a broad infrastructure package becomes law, but it is helpful that both the administration and many on Capitol Hill continue to call for significant increases in federal investment in airports. We remain strongly supportive of those efforts to boost funding in the near-term and continue to argue that a long overdue adjustment to the local PFC cap could create a sustainable, long-term revenue stream for necessary airport investments.
