Airport Alert: House Appropriations Committee Unveils FY21 DOT Spending Bill With Big Proposed Increases for Airports
The House Appropriations Committee today released a Fiscal Year 2021 spending bill for the Department of Transportation that proposes almost $6.4 billion for airport infrastructure projects, funding for small community programs, and a $2.8 million increase for the Contract Tower Program.
For airports, the House proposal includes $3.35 billion for the traditional Airport Improvement Program and an additional $500 million for supplemental discretionary grants. It also includes $2.5 billion for airport infrastructure investments as part of a $26 billion plus-up to DOT to "support the economic recovery from the coronavirus pandemic and strengthen and make more resilient our nation's aging infrastructure."
The bill, which will be considered by a key subcommittee tomorrow, provides a total of $107.2 billion for DOT next year. It also includes $75 billion in emergency spending for transportation and housing infrastructure. Rep. David Price (D-NC), the Chairman of the Subcommittee of Transportation, Housing and Urban Development, and Related Agencies commented on the proposed influx of funding for infrastructure:
"...it continues to build on bipartisan progress in recent fiscal years to increase funding for all modes of transportation-highways, aviation, transit, bike and pedestrian projects, rail, and ports-while improving safety and focusing on resiliency across all programs," Price said. "These priorities are underscored by a robust emergency title that provides $75 billion in additional assistance to states and local communities to address pressing infrastructure challenges."
AAAE has been urging Congress to help airports by providing additional funds for capital projects, ongoing COVID-19-related expenses, small community air service programs and other airport priorities. Last month, AAAE President and CEO Todd Hauptli sent letters to leaders on the House and Senate Appropriations Committees that renewed our funding requests for the FY21 DOT spending bill.
We are also urging Congress to provide commercial service airports with an additional $13 billion and general aviation airports with $1.5 billion to help offset their COVID-19-related expenses.
Funding for FAA Programs
Traditional Airport Improvement Program Funding: The House bill includes $3.35 billion for the traditional AIP account in FY21 - the same as the current funding level. Of that amount, $119.4 million would go toward administration expenses, $15 million for the Airport Cooperative Research Program, $40.7 million for Airport Technology Research and $10 million for the Small Community Air Service Development Program.
Supplemental Airport Improvement Program Funding: The bill also includes an additional $500 million in supplemental AIP discretionary grants -- $100 million above the current level. If enacted into law, this proposal would bring the total supplemental discretionary funding for airports to $2.3 billion over a four-year period.
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. The CARES Act included another $10 billion to help airports with COVID-19-related expenses.
Additional Infrastructure Funding: The House bill includes $75 billion in "emergency spending for transportation and housing infrastructure" including $2.5 billion would for airport infrastructure projects. Of that amount available for airports, $250 million would be reserved for "airport sustainability activities focused on reducing energy consumption, noise impacts, waste, and pollution or improving water quality, community relations, and wildlife compatibility." The bill would require DOT to distribute these funds as discretionary grants.
Facilities and Equipment: The House bill proposes $3.045 billion for FAA facilities and equipment, including NextGen programs - the same amount that Congress approved for FY20.
FAA Operations: The House bill proposes approximately $11.1 billion for FAA operations.
Research, Engineering, and Development: The House measure includes $192.7 million for research, engineering, and development - the same as the current funding level.
Airport Improvement Program
Continued EDS Prohibition: The bill continues the prohibition against the use of AIP funds for "the replacement of baggage conveyor systems, reconfiguration of terminal baggage areas, or other airport improvements that are necessary to install bulk explosive detection systems."
Local Match: The bill maintains a narrow provision that allows small airports to pay the lower 5 percent match for any unfinished phased projects that were underway prior to the passage of the FAA Modernization and Reform Act of 2012.
Small Community Programs
Contract Towers: The House bill includes $172.8 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs - $2.8 million more than the current level. That increase would fund all 256 contract towers currently in the program and provide funding for new airports that the FAA is expected to add to the program in FY20 and FY21. The administration's budget request did not include any dedicated funding for the popular program.
Essential Air Service: The House bill includes $162 million in discretionary funding for the Essential Air Service Program - the same amount as the current funding level and approximately $20.3 million more than the administration's request. Coupled with an estimated $154 million from overflight fees, the overall funding level for EAS would rise to approximately $316 million in FY21.
The House bill would waive the 15-passenger seat requirement. It would also prevent DOT from entering into new a new contract for EAS communities that are located less than 40 miles from a small hub airport unless the community comes up with a local cost share.
Small Community Air Service Development: The House bill includes $10 million for the Small Community Air Service Development Program. This is the same amount that Congress approved for the program in FY20 and $10 million more than the administration requested.
Miscellaneous
Cost Free Space: The House bill includes a AAAE-backed proposal that would continue to prohibit the FAA from requiring airports to provide space free of charge in airport-owned buildings.
Airport Cooperative Research Program: As mentioned above, the House bill includes $15 million in AIP funding for the Airport Cooperative Research Program.
Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers program at any airport.
What's Next?
The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies is scheduled to mark up the legislation tomorrow at 11:00 a.m. The full committee is expected to consider the measure next week.
