Airport Alert: Legislative Text Released on Bipartisan Infrastructure Bill
August 1, 2021
After weeks of negotiations, a bipartisan group of Senators tonight released the final legislative text of a $1.2 trillion infrastructure package that includes $550 billion in new spending and $25 billion for aviation. The breakthrough will allow the Senate to begin debating amendments and proceed to a vote on final passage "in a matter of days."
Senate Majority Leader Chuck Schumer (D-NY) earlier today and tonight reiterated his dual track approach to infrastructure investment and a broader, more expensive package of Democratic priorities. The Democratic plan calls for the Senate to first pass the $1.2 trillion bipartisan infrastructure package and then clear a budget resolution before lawmakers adjourn for the annual August recess.
Bipartisan Infrastructure Bill
With the legislative text of the bipartisan infrastructure bill finally nailed down, Schumer this evening offered the text as a substitute amendment to an underlying bill, making the agreement the base bill. The procedural move will open the door for the Senate to begin considering amendments to the $1.2 trillion infrastructure package.
Schumer voiced his optimism that the Senate will clear the infrastructure package after lawmakers go through the amendment process. "Given the thoroughly bipartisan nature of the bill, I expect we will be able to consider all relevant amendments and finish the bill in a matter of days," Schumer said.
Late last week, 16 Republicans including Senate Republican Leader Mitch McConnell (R-KY) approved a motion to proceed to the infrastructure bill -- a sign that Schumer should have enough Republican support to pass the bipartisan measure later this week.
Budget Resolution
After the Senate finishes the infrastructure package, Schumer intends to move forward with a budget resolution, which will set the stage for Senate Democrats to move forward with a $3.5 trillion social spending package with a simple majority vote. However, with a 50-50 Senate, Schumer faces the difficult task of trying to keep moderate and progressive Democrats on the same page.
"But we know that this [infrastructure] bill isn't everything our country needs, Schumer said. "That is why after the bipartisan infrastructure legislation passes this chamber, I will immediately move to the other track -- passing a budget resolution with reconciliation instructions which will allow the Senate to make historic investments in American jobs, American families, and efforts to reverse climate change."
Meanwhile, House Speaker Nancy Pelosi (D-CA) has said the House will not consider the bipartisan infrastructure bill until the Senate passes the larger and more controversial reconciliation package. To complicate matters, key House Democrats have criticized the bipartisan infrastructure bill drafted in the Senate for not doing enough to advance Democratic priorities.
The House began its extended August break on Friday and is not currently scheduled to be in session to consider the infrastructure bill or a budget resolution until after Labor Day. House Majority Leader Steny Hoyer (D-MD) indicated that it is possible lawmakers could be brought back to Washington for votes prior to that time.
As the Senate takes the first step and begins debating the infrastructure package this week, we will keep you posted on any possible aviation-related amendments. In the meantime, details of the aviation section of $1.2 trillion bipartisan infrastructure plan are below.
Overview of Bipartisan Infrastructure Bill
As we have previously reported, the broad framework includes $25 billion in general fund expenditures for aviation -- $15 billion for airport infrastructure grants, $5 billion for a new "airport terminal program," and $5 billion for FAA Facilities and Equipment. Funding would be distributed evenly over a five-year period, and airport grants in the first two categories would require a local match.
Airport Infrastructure Funding: The infrastructure bill includes $15 billion in formula funding for airport infrastructure grants with $3 billion to be distributed annually. Unlike traditional AIP dollars, airports would have flexibility to use these federal funds for terminals and other PFC-eligible projects except debt service.
New Airport Terminal Program: The bill would provide $5 billion over five years or $1 billion annually for a new "airport terminal program." The Department of Transportation would be allowed to distribute these funds through a competitive grant program with funding broken down by hub size. Eligible projects also include certain multimodal terminal development and on-airport rail projects.
FAA Facilities and Equipment: The remaining $5 billion would go toward FAA Facilities and Equipment. At least $200 million of that amount would be reserved for airports that participate in the FAA Contract Tower Program to upgrade aging FAA-owned ATC facilities.
Airport Infrastructure Grants
Primary Airports: Of the $15 billion available for airport infrastructure grants, $12.4 billion would be reserved for primary commercial service airports – or 2.48 billion annually for five years. Unlike the regular AIP program, airports would be allowed to use these federal funds for terminals and other PFC-eligible projects except debt service.
The bill calls for funds to first be distributed by a modified AIP apportionment run, which is similar to the method used in the recent coronavirus relief bills. For instance, the cargo set-aside would remain intact, and there would be no maximum grant amount or "PFC turnbacks." The bill would preserve doubled entitlements and retain the $1 million minimum entitlement for smaller primary airports.
Like the recent coronavirus relief bills, any remaining funds in this category would be distributed to airports based on enplanements. The infrastructure package calls for the FAA to use enplanements in calendar year 2019 to determine this portion of funding in Fiscal Years 2022 and 2023 – a move that would exclude irregular passenger numbers in CY20 and CY21. Funding in fiscal years 2024, 2025, and 2026 would be based on "the most recent calendar year."
Non-Primary Commercial Service/General Aviation Airports: Of the $15 billion for airport infrastructure grants, $2.5 billion would be reserved for nonprimary commercial service and general aviation airports over five years – or $500 million annually. Like the recent coronavirus relief bills, funds for those airports would be based on categories described in the National Plan of Integrated Airport System. Any remaining funds – if any become available – would go to contract tower airports for projects described below.
Contract Tower Airports: The bill would reserve $100 million over five years for airports that participate in the FAA Contract Tower Program and Contract Tower Cost Share Program to upgrade aging airport-owned ATC towers and to purchase equipment for those facilities. The federal share for those projects would be 100 percent, and the annual funding level would be $20 million.
Specifically, the bill calls for DOT to distribute those funds through a competitive grant program to help contract tower airports "sustain, construct, repair, improve, rehabilitate, modernize, replace or relocate nonapproach control towers." Contract tower airports would also be allowed to use those for funds to acquire and install ATC equipment and construct FAA-certified remote towers.
Local Match: Unlike the recent COVID relief packages, funding for airport infrastructure would require a local match in most instances and mirror those for AIP projects. The federal share for large and medium hub airports would be 75 percent, and the federal share for smaller airports would be 90 percent except for ATC-related projects at contract tower airports.
Administrative Costs: The bill reserves up to three percent of funds annually for DOT and FAA to administer the airport infrastructure grant program. Of that amount, $1 million annually would be set aside for the DOT Office of Inspector General for oversight functions.
Unobligated Funds: Any unobligated funds in this category at the end of the fourth fiscal year would be available to DOT to distribute as competitive grants. If unobligated funds materialize, the first $100 million would be reserved for contract tower airports to upgrade sponsor-owned ATC facilities. Remaining funds would be available for projects that "reduce airport emissions, reduce noise impact to the surrounding community, reduce dependence on the electrical grid, or provide general benefits to the surrounding community."
Airport Terminal Program
The bipartisan infrastructure framework includes a total of $5 billion over five years for a new "airport terminal program" or $1 billion annually. Unlike the airport infrastructure grants, the bill would require DOT to distribute these funds through a competitive grant program similar to AIP discretionary grants.
But the bill would place some restrictions on DOT by requiring the agency to distribute funds by hub sizes. Specifically, it would require DOT to distribute 55 percent of the grants to large hubs, 15 percent for medium hubs, 20 percent for small hubs, and 10 percent for nonubs and nonprimary airports.
Eligibility: DOT would be allowed to distribute funds in this category for terminal projects including multimodal terminal development projects and certain on-airport rail projects. The agency could also fund projects for relocating, reconstructing, repairing or improving airport-owned ATC facilities.
On the terminal piece, the bill would require DOT to consider a variety of projects including those that increase capacity, improve passenger access, and replace aging infrastructure. It would also require DOT to consider projects that "expand accessibility for persons with disabilities" and "improve airport access for historically disadvantaged populations."
Preferences and Priorities: The bill requires DOT to provide a preference to projects that "achieve a complete development objective" even if those projects are phased over multiple years. It would also require DOT to prioritize projects that "have received partial awards."
Local Match: Funding for terminals and other eligible projects in this category also requires a local match. The federal share for large and medium hubs would be 80 precent, and the federal share for smaller airports would be 95 percent.
Administrative Costs: The bill reserves up to three percent of funds annually for DOT and FAA to administer the airport terminal program. Of that amount, $1 million annually would be set aside for the DOT Office of Inspector General for oversight functions.
FAA Facilities and Equipment
The bill includes $5 billion over five years for FAA facilities and equipment or $1 billion annually. The bill would allow the FAA to use these funds for a variety of purposes including replacing terminal and en route ATC facilities, fuel storage tank replacement, electrical power system support, and hazardous materials management and environmental cleanup.
Contract Tower Airports: Of the $5 billion for F&E projects, not less than $200 million would be fenced off for "air traffic control towers that are owned by the Federal Aviation Administration and staffed through the contract tower program." Combined with funding for airport infrastructure grants, the total dedicated funding for contract tower airports would be $300 million.
The bill includes some reporting requirements for DOT. For instance, it calls on the agency to submit to Congress a "detailed spend plan, including a list of project locations of air traffic control towers and contract towers to be funded in FY22." It would also require the agency to submit similar detailed spend plans in subsequent fiscal years as part of its annual budget submission with specific mention of contract tower projects.
Miscellaneous
TIFIA: The infrastructure bill would allow airports to access low interest loans and loan guarantees under the TIFIA program for PFC-eligible projects. Earlier this year, Senators Tammy Duckworth (D-IL) and John Cornyn (R-TX) introduced a free-standing bill (S. 1715) that would also expand the TIFIA program to more airport projects. Rep. John Garamendi (D-CA) introduced a similar bipartisan bill (H.R. 3340) in the House.
After weeks of negotiations, a bipartisan group of Senators tonight released the final legislative text of a $1.2 trillion infrastructure package that includes $550 billion in new spending and $25 billion for aviation. The breakthrough will allow the Senate to begin debating amendments and proceed to a vote on final passage "in a matter of days."
Senate Majority Leader Chuck Schumer (D-NY) earlier today and tonight reiterated his dual track approach to infrastructure investment and a broader, more expensive package of Democratic priorities. The Democratic plan calls for the Senate to first pass the $1.2 trillion bipartisan infrastructure package and then clear a budget resolution before lawmakers adjourn for the annual August recess.
Bipartisan Infrastructure Bill
With the legislative text of the bipartisan infrastructure bill finally nailed down, Schumer this evening offered the text as a substitute amendment to an underlying bill, making the agreement the base bill. The procedural move will open the door for the Senate to begin considering amendments to the $1.2 trillion infrastructure package.
Schumer voiced his optimism that the Senate will clear the infrastructure package after lawmakers go through the amendment process. "Given the thoroughly bipartisan nature of the bill, I expect we will be able to consider all relevant amendments and finish the bill in a matter of days," Schumer said.
Late last week, 16 Republicans including Senate Republican Leader Mitch McConnell (R-KY) approved a motion to proceed to the infrastructure bill -- a sign that Schumer should have enough Republican support to pass the bipartisan measure later this week.
Budget Resolution
After the Senate finishes the infrastructure package, Schumer intends to move forward with a budget resolution, which will set the stage for Senate Democrats to move forward with a $3.5 trillion social spending package with a simple majority vote. However, with a 50-50 Senate, Schumer faces the difficult task of trying to keep moderate and progressive Democrats on the same page.
"But we know that this [infrastructure] bill isn't everything our country needs, Schumer said. "That is why after the bipartisan infrastructure legislation passes this chamber, I will immediately move to the other track -- passing a budget resolution with reconciliation instructions which will allow the Senate to make historic investments in American jobs, American families, and efforts to reverse climate change."
Meanwhile, House Speaker Nancy Pelosi (D-CA) has said the House will not consider the bipartisan infrastructure bill until the Senate passes the larger and more controversial reconciliation package. To complicate matters, key House Democrats have criticized the bipartisan infrastructure bill drafted in the Senate for not doing enough to advance Democratic priorities.
The House began its extended August break on Friday and is not currently scheduled to be in session to consider the infrastructure bill or a budget resolution until after Labor Day. House Majority Leader Steny Hoyer (D-MD) indicated that it is possible lawmakers could be brought back to Washington for votes prior to that time.
As the Senate takes the first step and begins debating the infrastructure package this week, we will keep you posted on any possible aviation-related amendments. In the meantime, details of the aviation section of $1.2 trillion bipartisan infrastructure plan are below.
Overview of Bipartisan Infrastructure Bill
As we have previously reported, the broad framework includes $25 billion in general fund expenditures for aviation -- $15 billion for airport infrastructure grants, $5 billion for a new "airport terminal program," and $5 billion for FAA Facilities and Equipment. Funding would be distributed evenly over a five-year period, and airport grants in the first two categories would require a local match.
Airport Infrastructure Funding: The infrastructure bill includes $15 billion in formula funding for airport infrastructure grants with $3 billion to be distributed annually. Unlike traditional AIP dollars, airports would have flexibility to use these federal funds for terminals and other PFC-eligible projects except debt service.
New Airport Terminal Program: The bill would provide $5 billion over five years or $1 billion annually for a new "airport terminal program." The Department of Transportation would be allowed to distribute these funds through a competitive grant program with funding broken down by hub size. Eligible projects also include certain multimodal terminal development and on-airport rail projects.
FAA Facilities and Equipment: The remaining $5 billion would go toward FAA Facilities and Equipment. At least $200 million of that amount would be reserved for airports that participate in the FAA Contract Tower Program to upgrade aging FAA-owned ATC facilities.
Airport Infrastructure Grants
Primary Airports: Of the $15 billion available for airport infrastructure grants, $12.4 billion would be reserved for primary commercial service airports – or 2.48 billion annually for five years. Unlike the regular AIP program, airports would be allowed to use these federal funds for terminals and other PFC-eligible projects except debt service.
The bill calls for funds to first be distributed by a modified AIP apportionment run, which is similar to the method used in the recent coronavirus relief bills. For instance, the cargo set-aside would remain intact, and there would be no maximum grant amount or "PFC turnbacks." The bill would preserve doubled entitlements and retain the $1 million minimum entitlement for smaller primary airports.
Like the recent coronavirus relief bills, any remaining funds in this category would be distributed to airports based on enplanements. The infrastructure package calls for the FAA to use enplanements in calendar year 2019 to determine this portion of funding in Fiscal Years 2022 and 2023 – a move that would exclude irregular passenger numbers in CY20 and CY21. Funding in fiscal years 2024, 2025, and 2026 would be based on "the most recent calendar year."
Non-Primary Commercial Service/General Aviation Airports: Of the $15 billion for airport infrastructure grants, $2.5 billion would be reserved for nonprimary commercial service and general aviation airports over five years – or $500 million annually. Like the recent coronavirus relief bills, funds for those airports would be based on categories described in the National Plan of Integrated Airport System. Any remaining funds – if any become available – would go to contract tower airports for projects described below.
Contract Tower Airports: The bill would reserve $100 million over five years for airports that participate in the FAA Contract Tower Program and Contract Tower Cost Share Program to upgrade aging airport-owned ATC towers and to purchase equipment for those facilities. The federal share for those projects would be 100 percent, and the annual funding level would be $20 million.
Specifically, the bill calls for DOT to distribute those funds through a competitive grant program to help contract tower airports "sustain, construct, repair, improve, rehabilitate, modernize, replace or relocate nonapproach control towers." Contract tower airports would also be allowed to use those for funds to acquire and install ATC equipment and construct FAA-certified remote towers.
Local Match: Unlike the recent COVID relief packages, funding for airport infrastructure would require a local match in most instances and mirror those for AIP projects. The federal share for large and medium hub airports would be 75 percent, and the federal share for smaller airports would be 90 percent except for ATC-related projects at contract tower airports.
Administrative Costs: The bill reserves up to three percent of funds annually for DOT and FAA to administer the airport infrastructure grant program. Of that amount, $1 million annually would be set aside for the DOT Office of Inspector General for oversight functions.
Unobligated Funds: Any unobligated funds in this category at the end of the fourth fiscal year would be available to DOT to distribute as competitive grants. If unobligated funds materialize, the first $100 million would be reserved for contract tower airports to upgrade sponsor-owned ATC facilities. Remaining funds would be available for projects that "reduce airport emissions, reduce noise impact to the surrounding community, reduce dependence on the electrical grid, or provide general benefits to the surrounding community."
Airport Terminal Program
The bipartisan infrastructure framework includes a total of $5 billion over five years for a new "airport terminal program" or $1 billion annually. Unlike the airport infrastructure grants, the bill would require DOT to distribute these funds through a competitive grant program similar to AIP discretionary grants.
But the bill would place some restrictions on DOT by requiring the agency to distribute funds by hub sizes. Specifically, it would require DOT to distribute 55 percent of the grants to large hubs, 15 percent for medium hubs, 20 percent for small hubs, and 10 percent for nonubs and nonprimary airports.
Eligibility: DOT would be allowed to distribute funds in this category for terminal projects including multimodal terminal development projects and certain on-airport rail projects. The agency could also fund projects for relocating, reconstructing, repairing or improving airport-owned ATC facilities.
On the terminal piece, the bill would require DOT to consider a variety of projects including those that increase capacity, improve passenger access, and replace aging infrastructure. It would also require DOT to consider projects that "expand accessibility for persons with disabilities" and "improve airport access for historically disadvantaged populations."
Preferences and Priorities: The bill requires DOT to provide a preference to projects that "achieve a complete development objective" even if those projects are phased over multiple years. It would also require DOT to prioritize projects that "have received partial awards."
Local Match: Funding for terminals and other eligible projects in this category also requires a local match. The federal share for large and medium hubs would be 80 precent, and the federal share for smaller airports would be 95 percent.
Administrative Costs: The bill reserves up to three percent of funds annually for DOT and FAA to administer the airport terminal program. Of that amount, $1 million annually would be set aside for the DOT Office of Inspector General for oversight functions.
FAA Facilities and Equipment
The bill includes $5 billion over five years for FAA facilities and equipment or $1 billion annually. The bill would allow the FAA to use these funds for a variety of purposes including replacing terminal and en route ATC facilities, fuel storage tank replacement, electrical power system support, and hazardous materials management and environmental cleanup.
Contract Tower Airports: Of the $5 billion for F&E projects, not less than $200 million would be fenced off for "air traffic control towers that are owned by the Federal Aviation Administration and staffed through the contract tower program." Combined with funding for airport infrastructure grants, the total dedicated funding for contract tower airports would be $300 million.
The bill includes some reporting requirements for DOT. For instance, it calls on the agency to submit to Congress a "detailed spend plan, including a list of project locations of air traffic control towers and contract towers to be funded in FY22." It would also require the agency to submit similar detailed spend plans in subsequent fiscal years as part of its annual budget submission with specific mention of contract tower projects.
Miscellaneous
TIFIA: The infrastructure bill would allow airports to access low interest loans and loan guarantees under the TIFIA program for PFC-eligible projects. Earlier this year, Senators Tammy Duckworth (D-IL) and John Cornyn (R-TX) introduced a free-standing bill (S. 1715) that would also expand the TIFIA program to more airport projects. Rep. John Garamendi (D-CA) introduced a similar bipartisan bill (H.R. 3340) in the House.
