Regulatory Alert: FAA Releases Further Guidance on AIP Changes from the 2024 FAA Reauthorization Act

May 13, 2025

On Monday afternoon, the Federal Aviation Administration (FAA) released three new “Reauthorization Program Guidance Letters” (R-PGL) that implement or provide guidance to field offices on how to interpret changes to the Airport Improvement Program (AIP) made by Congress through the FAA Reauthorization Act of 2024. Most of the provisions from the law addressed by the new R-PGLs focus on changes made to AIP project eligibility, the use of alternative project delivery methods, the small airport letters of intent program, and the Electric Aircraft Infrastructure Pilot Program, among others.

For additional background, FAA releases R-PGLs to implement policy changes made by FAA reauthorization laws in a more expedient manner. The guidance included in R-PGLs is typically incorporated into future revisions of advisory circulars or internal FAA orders, such as the AIP Handbook. Release of the three new R-PGLs comes days before two congressional hearings that are scheduled this week. Wayne Heibeck, Acting Associate Administrator for Airports, is set to testify on behalf of the FAA Office of Airports before the Senate Commerce Committee on Wednesday and the House Transportation and Infrastructure Committee on Thursday.

You can read R-PGL 25-04, “Procurement”; R-PGL 25-05, “Funding and Formula Changes”; and R-PGL 25-06, “Planning and Project Eligibility.” FAA released the first three R-PGLs for the 2024 FAA law last month and are available here. Additional details are provided below.

Overview of FAA Reauthorization Act. In May 2024, Congress passed a multi-year bipartisan and bicameral FAA reauthorization bill that increases AIP funding levels to $4 billion annually, authorizes $200 million annually for resilience and runway safety projects, and authorizes $350 million over a five-year period to help airports transition to fluorine-free firefighting (F3) agents. AAAE developed a comprehensive summary and guide to the FAA reauthorization law, which includes an overview of all relevant provisions, deadlines that Congress has established for FAA to comply, and status of implementation. We keep this document updated as FAA and other agencies implement the law. You can access AAAE’s summary here.

Summary of FAA’s R-PGLs. FAA’s three R-PGLs provide implementation details on each of the following changes, among others, that Congress made to the AIP through the FAA reauthorization law:

AIP Entitlement/Apportionment Changes: Under sections 712 and 713, Congress made a number of changes to the formulas used to determine AIP entitlements, formally known as apportionments, for both primary and nonprimary airports. In R-PGL 25-05, FAA explains, in plain English, each of the formula changes made by the FAA reauthorization law. While no additional guidance or insights are provided, FAA provided a comprehensive list of the changes that will be used for calculating entitlements beginning this fiscal year and incorporated into the AIP Handbook at a future date.
Small Airport Letters of Intent (SALOI) Program: Under section 710, Congress provided FAA with authority to issue a “letter of intent” (LOI) to a nonhub or nonprimary airport, which is a formal document that states the agency’s intent to fund a specific project using AIP funding from future years in accordance with a schedule. The SALOI Program is intended to allow smaller airports to plan large capital projects and receive financing for them. In R-PGL 25-05, FAA outlined procedures for airports to follow if they are interested in applying for a SALOI, which is similar to the existing LOI program for larger airports. The agency also explained how it will evaluate projects for an SALOI.
Adjusting Award Amount in Grant Agreements: Under section 707, Congress provided FAA with authority to incorporate a provision in grant agreements that allows the agency to adjust the amount awarded to an airport after a grant agreement is executed. The provision enables FAA to pay more than the maximum amount specified in the agreement if the agency finds that commodity or labor prices have increased since the agreement was made. In R-PGL 25-05, FAA explains the circumstances under which price adjustment provisions are permissible in grant documents and when adjustments may be approved.
AIP Project Eligibility Changes: Congress made a variety of changes to the types of projects that are AIP eligible. R-PGL 25-06 addresses the eligibility of advanced digital construction management systems; safety improving activities; projects to construct, reconstruct, or rehabilitate taxiways and taxilanes serving certain aeronautical facilities; projects to increase the resiliency of airport operations to natural disaster events; and assessments of “current and future energy” power requirements and related development costs. R-PGL 25-01 and 25-02, which were released last month, address other projects that are now eligible, such as secondary runways at nonhub airports.
Electric Aircraft Infrastructure Pilot Program: Under section 745, Congress provided FAA with authority to establish a pilot program that allows up to ten airports to use AIP grant funding to (a) acquire, install, and operate charging equipment for electric aircraft or (b) construct or modify related infrastructure to facilitate delivery of power or services necessary for the use of electric aircraft. In R-PGL 25-06, FAA indicated its intent to solicit project proposals from airport sponsors but provided no timeline for the solicitation. However, FAA provided guidance to airport sponsors on initial work that should be completed prior to the agency’s solicitation.
Alternative Project Delivery: Under section 723, Congress expanded the allowable contract types for AIP grants from solely design-build to also include progressive design-build, construction manager-at-risk, and integrated project delivery (IPD) methods. In R-PGL 25-04, FAA notes that the application approval processes for these types of delivery contracts will follow the existing processes that apply to design-build projects, with the exception of IPD contracts. FAA will only fund IPD contracts through the newly created IPD Pilot Program, discussed below.
Integrated Project Delivery (IPD) Pilot Program: Under section 723, Congress directed FAA to establish a pilot program where the agency may award AIP grants to carry out up to five building construction projects that use IPD contracts. In R-PGL 25-04, FAA indicated that the agency will solicit pilot program applications, and additional guidance regarding participation is forthcoming. However, no timeline is provided for when the solicitations will occur or when the program will be officially established.
Funding Prohibition for Certain Passenger Boarding Bridge Manufacturers: Under section 711, Congress prohibited airports from using AIP funds for a contract with any Chinese-owned entity—included on a publicly available list established jointly by FAA, the U.S. Trade Representative, and Department of Justice—that manufacturers passenger boarding bridges and meets certain criteria, such as having been found to misappropriate intellectual property or trade secrets from a U.S. company. In R-PGL 25-04, FAA indicated that the agency is developing the list of entities and will make it publicly available when it is finalized.