House Appropriations Committee Unveils FY24 DOT/FAA Spending Bill
July 11, 2023
In advance of consideration by a key subcommittee tomorrow, House Appropriations Committee Republican leaders late this afternoon released a fiscal year 2024 spending bill that includes proposed funding levels in the year ahead for DOT, FAA, and other agencies.
As we have highlighted on our weekly calls, House Republicans are working aggressively to reduce federal spending and moving to fund annual appropriations bills at FY22 levels overall, which would necessitate government-wide cuts of nearly $120 billion from current levels. In contrast, the Democrat-controlled Senate is moving to fund the federal government at FY23 levels in accordance with the recent debt ceiling deal negotiated by President Biden and House Speaker Kevin McCarthy. The push in the House by Republicans to reduce spending by well more than $100 billion will undoubtedly complicate efforts to complete annual funding bills.
The bill released this afternoon highlights the strain the overall cuts will create on programs important to airports. Notably, the House FY24 DOT/FAA funding bill proposes $3.35 billion for AIP, rather than the $4 billion that is being proposed for FY24 in the FAA reauthorization bill that was approved unanimously by the House Transportation Committee in June and that will be considered by the full House next week. Additionally, the measure does not include funding for supplemental discretionary AIP grants, which have materialized in each of the past six fiscal years. On a positive note, the bill does propose an additional $303.9 million in general fund resources to fund 89 airport earmarks rather than taking those funds from base AIP funding. The FAA Contract Tower Program would be funded at $194 million.
Overall, the measure includes $19.553 billion in total budgetary resources for the FAA, which is $529 million above the FY23 enacted level. Of that amount, $12.73 billion is proposed for FAA operations, which committee leaders say would meet existing needs and allow the agency to hire 1,800 air traffic controllers to replace the retiring workforce. The bill proposes $2.973 billion for FAA facilities and equipment, which is $27.9 million above the FY23 enacted level. The FAA research, engineering, and development account is funded at $196.05 million.
Additional details, including a list of airport earmarks, will be included in the yet-to-be-released committee report to accompany the legislation. That document is typically made available when the bill is considered by the full committee in the weeks ahead. The bill released today does include important information, including:
AIP Funding: The House bill proposes $3.35 billion for the traditional AIP account in FY24 - the same as the current funding level but $650 million less than proposed by the pending FAA reauthorization bill for the upcoming fiscal year. Of that amount, the bill designates $157.5 million for administration expenses, $15 million for the Airport Cooperative Research Program, $41.8 million for Airport Technology Research, and $10 million for the Small Community Air Service Development Program.
Supplemental AIP Funding/Earmarks: The House bill does not propose funding for supplemental AIP discretionary grants but includes $303.9 million in general fund resources for 89 airport earmarks, which are officially known as 'Community Project Funding' requests. As noted above, the list of airport earmarks is not yet available.
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.
Contract Towers: The House bill includes $194 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs.
Essential Air Service: The House bill includes $348.6 million in discretionary funding for the Essential Air Service Program.
Small Community Air Service Development: The House bill includes $10 million for the Small Community Air Service Development Program
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.
Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers program at any airport.
Additional Info
• The House Appropriations Committee press release may be viewed here.
• The bill may be viewed here.
What's Next?
The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies is scheduled to consider the draft bill tomorrow at 5:00 p.m. The full committee is expected to consider the measure as early as next week. The Senate Appropriations Committee has not yet released its version of the FY24 DOT/FAA spending bill but could as early as next week.
