Airport Alert: Please Urge Lawmakers to Support Airport Infrastructure Investment
June 24, 2020
Key Airport Proposals
AIP Funding: H.R. 2, the INVEST In America Act, would increase the annual authorization level for the traditional AIP program from $3.35 billion to $4 billion through FY25 - an increase of $650 million annually over the current authorization level. The bill would preserve higher apportionments for commercial service airports in the next five years despite the dramatic drop in enplanements.
Supplemental Funding: The bill would also authorize up to $4 billion in supplemental funding for airports every year through FY25 with a 100 percent federal share. Specifically, the measure would authorize $3 billion in supplemental funding in FY21 and increase annual funding by $250 million every year to $4 billion by FY25.
Supplemental funds for commercial service airports would be distributed based on enplanements for calendar year 2019 or the most recent calendar year, whichever is greater. The bill would prohibit any airport that received more than four times its annual operating expenses in the CARES Act from receiving supplemental funding in FY21 or FY22.
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.
Bonds: The bill would reinstate Build America Bonds and Advance Refunding Bonds, which would help airports with their financing needs. The Tax Cut and Jobs Act, which Congress passed in late 2017, repealed advance refunding bonds despite objections from airports.
Talking Points
- On behalf of _______ Airport, I urge to you to support airport infrastructure investment as part of H.R. 2, the INVEST In America Act, when it reaches the House floor in the days ahead.
- The infrastructure package includes a number of provisions that could help airports in your district and around the country build critical infrastructure projects, meet the challenges associated with COVID-19, and help stimulate the economy.
- First, the bill would increase the annual Airport Improvement Program authorization level from $3.35 billion to $4 billion through Fiscal Year 2025. Airports rely on AIP funds to pay for runways, taxiways, and other safety projects.
- According to the FAA, airports have $7 billion in AIP-eligible projects every year. So increasing funding by a modest amount would be a welcome step in the right direction and help airports move forward with much-needed capital projects.
- H.R. 2 would also authorize up to $4 billion annually in supplemental funds for airports to invest in terminals, pay for debt service, and use for other non-AIP-eligible projects. This additional funding would also allow airports to upgrade aging facilities, help stimulate the economy and support good-paying jobs.
- The measure would also allow airports to use some of this supplemental funding to help pay for COVID-19-related expenses such enhanced cleaning and sanitization at a time when airports are working to keep their facilities safe for passengers and workers alike
- Finally, we realize that airports will need to continue to rely on bonds to help finance their infrastructure projects. We strongly support provisions in the bill that would reinstate Build America Bonds and Advance Refunding Bonds.
- Continued investment in the nation's airports will help create jobs and build facilities that are needed to meet post-COVID needs and the return of passenger traffic levels. We appreciate your support.
