Airport Alert: White House and Bipartisan Senate Group Come to an Agreement on Infrastructure Framework, Including $20 Billion for Airports
July 28, 2021
Tonight, the Senate is likely to clear a key procedural hurdle to allow for debate and what supporters hope is eventual passage of the bipartisan infrastructure framework (BIF) after a group of Republican and Democratic Senators and the White House announced earlier that they had come to an agreement on remaining, unresolved issues that had stalled progress on the package for the past several weeks. While legislative text is still being finalized, the BIF reportedly includes $550 billion in new spending over five years, including $25 billion for aviation.
As we have discussed in previous Airport Alerts and calls, the BIF includes $20 billion for airport infrastructure, including $15 billion ($3 billion per year) allocated by formula. These funds will provide flexibility for airports to address their specific needs, including AIP-eligible projects, terminal development projects, noise, multimodal, and airport-owned towers. The BIF also includes another $5 billion ($1 billion per year) for the Airport Terminal Program, a discretionary grant program for terminal development and other landside projects, with set-asides targeted for all hub sizes, which negotiators note will ensure that terminal projects at small hub airports, nonhub and nonprimary airports will receive funding, in addition to larger airports. Finally, the BIF will provide $5 billion (S1 billion per year, subject to congressional approval) for FAA-owned ATC facilities, including FAA-owned contract towers.
If the motion to proceed passes tonight, as we expect it will, there will be at least 30 hours before the next key vote, which will presumably allow negotiators to finalize legislative text of the BIF. This text will later be folded in as a substitute amendment. However, uncertainty remains regarding how the process will play out, including how Majority Leader Chuck Schumer (D-NY) will deal with possible amendments. Senators on both sides of the aisle may tie their support of final passage to receiving floor votes on key amendments, and Schumer will have to balance this with the fact that if the structure of the agreement is significantly altered, he risks the collapse of the entire framework. Remember, he will need 60 votes to end debate and to pass the bill, so his margin for error will be slim to none.
The other important piece of this that is in flux on the Senate side is the $3.5 trillion budget resolution, which Schumer also hopes to pass before a scheduled Senate recess on August 6. Democrats will need all 50 members of their caucus to pass the budget resolution, which sets the stage for an eventual partisan, reconciliation package. Key Democratic Senators like Kyrsten Sinema (D-AZ) have said that while they support moving forward with a broad package of spending, they have issues with the overall price tag. This is important for the BIF because House Speaker Nancy Pelosi (D-CA) remains adamant that the House will not take up the BIF until the Senate passes a budget resolution. Pelosi has also stated that she will not commit to keeping the Senate BIF intact in the House after members of her caucus, including Transportation and Infrastructure Committee Chair Peter DeFazio (D-OR), have publicly panned the BIF for being completely void of House Democratic priorities.
All of this is to say that while there is positive momentum to get the BIF across the finish line in the Senate, many procedural and political hurdles remain. As we have stated throughout this process, it is important that airports continue to reach out to their Congressional delegations about their infrastructure needs and the importance of getting something passed and signed into law.
Tonight, the Senate is likely to clear a key procedural hurdle to allow for debate and what supporters hope is eventual passage of the bipartisan infrastructure framework (BIF) after a group of Republican and Democratic Senators and the White House announced earlier that they had come to an agreement on remaining, unresolved issues that had stalled progress on the package for the past several weeks. While legislative text is still being finalized, the BIF reportedly includes $550 billion in new spending over five years, including $25 billion for aviation.
As we have discussed in previous Airport Alerts and calls, the BIF includes $20 billion for airport infrastructure, including $15 billion ($3 billion per year) allocated by formula. These funds will provide flexibility for airports to address their specific needs, including AIP-eligible projects, terminal development projects, noise, multimodal, and airport-owned towers. The BIF also includes another $5 billion ($1 billion per year) for the Airport Terminal Program, a discretionary grant program for terminal development and other landside projects, with set-asides targeted for all hub sizes, which negotiators note will ensure that terminal projects at small hub airports, nonhub and nonprimary airports will receive funding, in addition to larger airports. Finally, the BIF will provide $5 billion (S1 billion per year, subject to congressional approval) for FAA-owned ATC facilities, including FAA-owned contract towers.
If the motion to proceed passes tonight, as we expect it will, there will be at least 30 hours before the next key vote, which will presumably allow negotiators to finalize legislative text of the BIF. This text will later be folded in as a substitute amendment. However, uncertainty remains regarding how the process will play out, including how Majority Leader Chuck Schumer (D-NY) will deal with possible amendments. Senators on both sides of the aisle may tie their support of final passage to receiving floor votes on key amendments, and Schumer will have to balance this with the fact that if the structure of the agreement is significantly altered, he risks the collapse of the entire framework. Remember, he will need 60 votes to end debate and to pass the bill, so his margin for error will be slim to none.
The other important piece of this that is in flux on the Senate side is the $3.5 trillion budget resolution, which Schumer also hopes to pass before a scheduled Senate recess on August 6. Democrats will need all 50 members of their caucus to pass the budget resolution, which sets the stage for an eventual partisan, reconciliation package. Key Democratic Senators like Kyrsten Sinema (D-AZ) have said that while they support moving forward with a broad package of spending, they have issues with the overall price tag. This is important for the BIF because House Speaker Nancy Pelosi (D-CA) remains adamant that the House will not take up the BIF until the Senate passes a budget resolution. Pelosi has also stated that she will not commit to keeping the Senate BIF intact in the House after members of her caucus, including Transportation and Infrastructure Committee Chair Peter DeFazio (D-OR), have publicly panned the BIF for being completely void of House Democratic priorities.
All of this is to say that while there is positive momentum to get the BIF across the finish line in the Senate, many procedural and political hurdles remain. As we have stated throughout this process, it is important that airports continue to reach out to their Congressional delegations about their infrastructure needs and the importance of getting something passed and signed into law.
