Airport Alert: Senate Republicans Release Coronavirus Package with $10 Billion for Airports
July 27, 2020
After a full week of intense negotiations with the White House, Senate Republican leaders this afternoon released the outlines of their proposed next round of coronavirus relief (the Health, Economic Assistance, Liability Protection and Schools - HEALS Act), including $10 billion for airports. This is obviously very good news, but we will have to work hard to keep the funding intact as difficult negotiations continue in the days ahead.A summary of the bill states that "The proposal provides $10 billion to FAA's Airport Improvement Program to maintain operations at our nation's airports that are facing a record drop in passengers. Funding will be distributed by statutory entitlement and enplanements formulas and may be used for operating expenses and debt service. Funding is also set aside to maintain Contract Tower operations." The Republican proposal also calls for $75 million for EAS, $208 million for TSA and $1.6 billion to cover a shortfall in CBP fees, which help fund CBP officers.
Airport Funding
The airport funding provisions, which are part of a broader $306 billion emergency appropriations section, include:
- The funding is 100 percent federal share.
- $9.5 billion is designated for commercial service airports for "any purpose for which airport revenues may lawfully be used, including operations, public health, cleaning, sanitization, janitorial services, combating the spread of pathogens, and debt service payments."
- These funds are to be distributed based on AIP entitlement formulas, including the cargo set-aside, with no maximum grant amount and no PFC turnback, with any remaining funds to be distributed based on enplanements.
- Any airport that received more than four years of operating expenses under the CARES Act is ineligible for these funds.
- $500 million is designated for nonprimary and general aviation airports apportioned in the same manner as the CARES Act with $8.15 million of the funds reserved for Contract Tower airports to cover lawful expenses to support FAA contract tower operations.
Workforce retention: The proposal requires that airports receiving funding to "continue to employ, through March 31, 2021, at least 90 percent of the number of individuals employed (after making adjustments for retirements or voluntary employee separations) by the airport as of March 27, 2020." The workforce retention requirement may be waived by the Secretary of Transportation if a determination is made that the airport is experiencing economic hardship as a direct result of the requirement, or the requirement reduces aviation safety or security. This requirement does not apply to nonhub or nonprimary airports.
Local Match, FY21 AIP Grants: The measure does not address the federal match for FY21 AIP grants as we had requested in large part because those funds have yet to materialize.
DHS/TSA/CBP Funding
- The Senate Republican plan includes $208 million to TSA for enhanced cleaning and technology to reduce physical contact with travelers.
- $1.6 billion for CBP to cover fee shortfalls, which funds 40 percent of the agency's officers.
What's Next??
The release of the Senate Republican proposal is only the first step in what is expected to be vigorous negotiations between congressional Republicans and Democrats and the White House in the days ahead over a final coronavirus relief package. This initial Republican proposal is already being panned by House and Senate Democrats, and some Republicans, frankly, so significant adjustments are likely. We need to stay engaged to protect the proposed airport funding and make sure it is part of any final package that is agreed to and signed into law.
We will have further calls to action as things progress in the critical days ahead. Stay tuned, and get ready to make your voice heard with your elected officials.
