House Clears FY21 DOT Spending Bill; Measure Includes $6.4 Billion for Airport Infrastructure

July 31, 2020

The House today approved a six-bill minibus appropriations package that includes the Fiscal Year 2021 spending bill for the Department of Transportation, almost $6.4 billion for airport infrastructure and a $2.8 million plus-up for the contract tower program. The vote was 217 to 197.

On the infrastructure front, the House bill includes $3.35 billion for the traditional Airport Improvement Program and $500 million for supplemental discretionary grants. It also includes an additional $2.5 billion for airport infrastructure, which partially reflects the authorized funding in a separate Democratic infrastructure bill that the House passed earlier this month.

Overall, the appropriations bill includes $75 billion in emergency spending for infrastructure investment -- $26 billion for transportation and $49 billion for housing. The measure would also require airline, Amtrak and transit passengers to wear face masks during the Covid-19 pandemic.

The White House expressed concerns about both items in a Statement of Administration Policy (SAP) that it released yesterday. The administration threatened to veto the legislation in its current form, in part, over the proposed emergency spending and inclusion of "poison pills," which it says violates a two-year budget agreement.

Funding for FAA Programs

Infrastructure Funding: The bill includes $26 billion in emergency spending for transportation infrastructure including $2.5 billion for airports. Of the 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."

Again, the White House opposes the proposed emergency spending for transportation infrastructure. The SAP suggests, "this spending appears to be classified as emergency solely to enable the bill to reach the unrealistic budget authority authorization levels in the House's Moving Forward Act, while evading discretionary spending caps."

Supplemental Airport Improvement Program Funding: The bill 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.

Traditional Airport Improvement Program Funding: The measure includes $3.35 billion for the traditional AIP account in FY21. 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.

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. However, the bill would not eliminate the local match requirement for AIP projects funded with FY21 dollars as AAAE is recommending.

Small Community Programs

Contract Towers: The bill includes $172.8 million in dedicated funding for the Contract Tower Program - $2.8 million more than the current level. The report accompanying the bill indicates that the committee "expects FAA to continue to operate the 256 contract towers currently in the program, annualize funding for towers that will be added in 2020, and provide full-year funding for new airports expected to be added to the program in fiscal year 2021."

Essential Air Service: The 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 $153 million from overflight fees, the overall funding level for EAS would rise to approximately $315 million in FY21.

The House approved an amendment offered by Rep. Tulsi Gabbard (D-HI ) that would eliminate a requirement that EAS communities located less than 40 miles from a small hub airport come up with a local match to participate in the program.

Small Community Air Service Development: The 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.

Remote Towers: According to the accompanying report, the Committee "encourages the FAA to use remote tower technology as a means to enhance safety, reduce costs, and expand air traffic control services at rural and small community airport."

Noise and Environment

Community Engagement: The bill includes an additional $5 million for the FAA to "hire additional staff to increase the FAA's community engagement capacity, including participating in community roundtables and meetings with local officials," conduct environmental reviews and take other steps.

Noise Reports: The bill requires the FAA to submit reports to the Appropriations Committees on: 1) "activities undertaken by the Regional Ombudsmen, who serve as the regional liaisons on issues regarding aircraft noise, pollution, and safety; "2) "all FAA programs related to airport, aircraft, and environmental noise;" and 3) "current FAA in-take and response process for noise complaints...."

Environmental Mitigation: The Committee report directs the FAA to use funds to "implement the Environmental Mitigation Pilot Program and to conduct a series of studies and reports on aircraft noise" as required in the FAA reauthorization bill.

Airport Emissions Programs: The Committee report also "directs the FAA to promote both the Airport Zero Emissions Vehicle and Infrastructure Pilot Program and the Voluntary Airport Low Emissions Program as opportunities for airports to meet their obligations under the Clean Air Act."

Sound Insulation: The Committee report directs the FAA to "consider residences that were mitigated prior to 1993 with sound insulation as 'unmitigated' if an airport can verify that the residences continue to fall within the latest day-night average sound level (DNL) 65 decibel (dB) contour, and have an interior noise level of DNL 45 dB or higher."

Miscellaneous

Face Masks: The bill would require airline, Amtrak and transit passengers to wear masks or protective face coverings during the Covid-19 pandemic. The White House SAP suggests that this requirement "is overly restrictive" and that decisions on face masks "should be left to States, local governments, transportation systems, and public health leaders...."

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.

Emergency Preparedness: The FAA reauthorization bill required DOT to consider the "role the airport plays with respect to medical emergencies and evacuations' when evaluating airport master plans. The FY21 DOT spending bill "directs the FAA to work with airport sponsors and other Federal, State and local agencies to help plan for emergency preparedness and response, including planning for what spaces on the airport might be needed in the future.... in order to effectively support these activities."

Planning Grants to Assist Areas of Persistent Poverty: The bill includes $10 million for "planning grants to assist areas of persistent poverty." According to the report, these planning grants would support various activities including "airport improvement projects, and intermodal projects that are located in or directly benefiting counties and census tracts experiencing persistent poverty...."

Airport and Airway Trust Fund: The bill relies on the General Fund to pay for certain FAA functions. The report points out that passenger levels and aviation excise tax revenue have dropped because of the coronavirus pandemic. It also notes that the CARES Act suspended certain aviation taxes through January 2021. According to the report, "the AATF may have insufficient aviation tax revenue to meet all of its obligations in fiscal year 2021."

Careers in Transportation: The report "encourages the Department to consider initiatives that could increase the number and diversity of the transportation workforce, including pilots, airport executives, engineers, truck drivers, inspectors, technicians, and maritime workers, and to focus on engaging the next generation on potential careers in transportation fields."