Airport Alert: AAAE Renews Calls for Congress to Adopt Airport Priorities

June 12, 2020

As Congress gears up to consider the Fiscal Year 2021 appropriations bills over the next few weeks, AAAE is urging lawmakers to help airports by providing additional funds for capital projects, ongoing COVID-19-related expenses, small community air service programs and other airport priorities.
 
AAAE President and CEO Todd Hauptli sent letters to leaders on the House and Senate Appropriations Committee that outline our requests for the FY21 Department of Transportation, Housing and Urban Development, and Related Agencies Appropriations bill.  The letter renews the annual requests that AAAE made for the annual funding bill before the coronavirus hit and includes new asks to help airports recover from the pandemic.
 
Hauptli thanked lawmakers for their help in passing the CARES Act, which included $10 billion to help airports impacted by the pandemic. He pointed out that bill is helping airports weather the immediate crisis and address operational and debt service needs while keeping workers employed.  But he said airports are facing significant challenges.
 
In the letter, he highlighted that in April "Domestic travel was down 96%, and international traffic was virtually non-existent, down 99% year-over-year with just 132,000 passengers, down from 9.4 million in April 2019.  The overall annual decline is the largest on record, far exceeding the 51% reduction in passengers from March 2019 to March 2020."
 
To help airports recover in the longer term, Hauptli urged Congress to provide additional funding to help airports pay for operations and debt service including $13 billion for commercial service airports and between $1 billion and $2 billion for general aviation airports.  He also urged lawmakers to the extend the 100 percent federal share for AIP projects in FY21 and in subsequent years.
 
"As this crisis continues, many local communities are struggling to come up with the matching funds for capital projects," Hauptli wrote.  "Eliminating the local match requirement in FY21 is critical to ensuring that smaller airports in particular can accept AIP grants next year and proceed with their capital projects."
 
Requests for FY21 DOT Appropriations Bill
 
AIP Funding:  We are continuing to urge Congress to appropriate $3.35 billion for the traditional AIP program in FY21 and an additional $1 billion for supplemental discretionary grants.  In the past three years, Congress has provided $1.8 billion in supplemental discretionary AIP grants for airports -- $1 billion in FY18, $500 million in FY19 and $400 million in FY20.  Earlier this year, we were successful in getting a bipartisan letter from leaders of the House Transportation Committee and Aviation Subcommittee supporting our request for full funding for AIP and supplemental discretionary grants.  
 
Federal Share:  AAAE is also urging Congress to eliminate the local match requirement for AIP-funded projects in FY21.  The CARES Act included $500 million to cover the local match requirement for regular and supplemental AIP projects in FY20.  That welcome provision is helping airports of all sizes move forward with critical infrastructure projects at a time when local revenues are exceptionally scarce.  AAAE is urging lawmakers to increase the overall amount available for AIP to cover the increased federal share.
 
Contract Towers:  We are continuing to urge Congress to provide full funding for the Contract Tower Program.  This successful program allows 256 smaller airports in 46 states to have cost-effective air traffic control services that enhance aviation safety.  The popular Contract Tower Program also plays a key role in connecting smaller airports and rural communities with our national air transportation system.
 
Small Community Programs:  AAAE is urging Congress to increase funding for the Essential Air Service and Small Community Air Service Development programs. Both programs help to ensure that people who live in rural and less populated areas have access to our national aviation system. As we deal with coronavirus-related challenges and reduction in air service, these two programs are even more important.
 
COVID-19 Funding:  The CARES Act included $10 billion to help airports with the immediate challenges related the coronavirus.  However, we expect airports will need additional assistance in the longer term.  We are urging Congress provide commercial service airports with an additional $13 billion and general aviation airports with between $1 billion and $2 billion. Hauptli discussed the ongoing needs for commercial service and general aviation airports when he testified before the Senate Commerce Committee on May 6.