House Appropriations Committee Approves FY24 DOT/FAA Spending Bill
July 12, 2023
The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies met this afternoon and approved its version of the FY24 DOT/FAA appropriations measure. Next stop for the House bill is the full Appropriations Committee, likely next week. We expect the Senate to begin moving on its version of the legislation soon as well.
As we noted in our Alert yesterday, the House bill proposes $3.35 billion in AIP funding with another $303 million provided for airport earmarks. The measure also funds the Contract Tower Program 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.
As we have highlighted, 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. That fact was evident today as Democrats, including Committee Ranking Member Rosa DeLauro (D-CT) and Subcommittee Ranking Member Mike Quigley (D-IL), expressed their opposition to the measure and the level of cuts being proposed by Republicans.
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. Notably, the House bill includes:
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 House 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. That record funding is $6.2 million more than the current level of $187.8 million and the same amount the administration requested in FY24.
Essential Air Service: The House bill includes $348.6 million in discretionary funding for the Essential Air Service Program, the amount requested by the administration.
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.
Sustainable Aviation Fuel Programs: The committee notes that the bill 'rejects the Administration's request for additional programs and initiatives totaling nearly $1.7 billion, including: $92 million for FAA Environment, Energy, and Sustainable Aviation Fuel programs."
Additional Info
• The House Appropriations Committee press release may be viewed here.
• The bill may be viewed here.
