Airport Alert: Senate Republicans Unveil Counterproposal to Biden Infrastructure Plan
April 22, 2021
A group of Senate Republicans, led by Senator Shelley Moore Capito (R-WV), unveiled a basic framework for their counterproposal to President Biden's $2.3 trillion American Jobs Plan. The proposal, which totals $568 billion over five years, focuses on what Republicans have deemed "traditional infrastructure," defined as: roads and bridges; public transit systems; rail; safety; drinking water and wastewater infrastructure; inland waterways and ports; airports; broadband infrastructure; and water storage.
For airports, the framework calls for $44 billion in programs administered by the Federal Aviation Administration (FAA), which equates to $27 billion in new funding beyond authorized AIP funding over the next five years. The $44 billion figure is consistent with AIP-eligible airport infrastructure needs identified in the most recent FAA National Plan of Integrated Airport Systems (NPIAS). For reference, the American Jobs Plan included $25 billion in new funding to upgrade airports, including $10 billion for AIP, $10 billion for "airport terminal renovation grants," and $5 billion for "FAA National Airspace System Facilities."
The framework avoids details on how this proposal would be paid for, including whether an increase in the Passenger Facility Charge (PFC) is in consideration; however, it does state that it will "ensure that all users of certain types of infrastructure are contributing to the generation of revenue." Importantly, it dismisses any increase in corporate taxes, which the President has targeted as the main funding source for his infrastructure plan.
While this is seen as an opening bid in a broader negotiation, Democrats have already dismissed this framework as insufficient in both size and scope to address the nation's numerous infrastructure challenges.
In multiple meetings with bipartisan groups of lawmakers at the White House, President Biden asked for a counterproposal from Congressional Republicans by mid-May. With the release of this framework, there are now the basic parameters for what will be contentious negotiations over the next few weeks.
Speaker Nancy Pelosi (D-CA) has set a deadline of July 4th to pass an infrastructure bill out of the House of Representatives. Whether Democrats choose to entertain a bipartisan path forward or utilize the reconciliation process, there is a limited timeframe for negotiations that would still allow her to meet this timeline.
Ultimately, this framework shows that there is bipartisan consensus that airports are core infrastructure and that upgrading our nation's airports is critical. AAAE will continue to work with lawmakers on both sides to ensure that robust funding for airport improvements is including in any infrastructure package that moves forward.
