Regulatory Alert: FAA Releases FY23 Allocations for Airport Infrastructure Grant Program
November 28, 2022
The Federal Aviation Administration (FAA) on November 28 released $2.89 billion in fiscal year 2023 (FY23) allocations for the Airport Infrastructure Grant (AIG) Program, which provides $15 billion for airport infrastructure upgrades over five years and was created by Congress through the Infrastructure Investment and Jobs Act (IIJA), known as the Bipartisan Infrastructure Law (BIL). The FY23 allocations represent the amount that each airport is entitled to use for any project that is eligible under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Airports may also combine their FY22 and FY23 allocations to fund a single project. 
You can view the FY23 AIG allocations here, which is a spreadsheet of amounts for each airport. Airports are encouraged to work with their local FAA offices to identify eligible projects and apply to use their allocated AIG funds. We understand that airports can begin applying to use their FY23 allocations as of today. 
BIL Background. As airports are aware, the BIL provides an historic investment of $20 billion in new federal spending for airport infrastructure over a five-year period. FAA has developed three different programs to administer the funds: 
• Airport Infrastructure Grant (AIG) Program: Under the AIG Program, FAA is making $15 billion in formula grants ($3 billion per year) available for airports to fund any eligible project under the AIP or PFC Program. Thus far, FAA has announced about $327 million in grant awards under the program based on the $2.89 billion in FY22 allocations that were made available to airports earlier this year. 
• Airport Terminal Program (ATP): Under the ATP, FAA will be issuing $5 billion in competitive grants ($1 billion per year) to fund projects for terminal development, on-airport rail access, or relocating, repairing, or improving an airport-owned air traffic control (ATC) facility. The deadline for FY23 ATP grant applications passed last month. Airports reportedly submitted over 680 requests for over $9.8 billion in funding. 
• FAA Contract Tower (FCT) Competitive Grant Program: Under the FCT Competitive Grant Program, FAA will be issuing $100 million in discretionary grants ($20 million per year) to fund projects that repair, improve, or replace an airport-owned FCT ATC tower. Earlier this month, FAA released a notice of funding opportunity (NOFO) that allows eligible airports to submit applications for a share of FY23 funding. The deadline to apply is Tuesday, December 6, 2022, at 5 p.m. ET. 
Key Reminders for AIG Program Funds. The following are several key reminders and details about how AIG program funds may be used: 
• Eligible Airports and Projects: Any airport sponsor identified in FAA's National Plan of Integrated Airport Systems (NPIAS) is eligible to receive an allocated amount under the AIG Program. FAA recently published the latest NPIAS on September 30 of this year, as we summarized in our Regulatory Alert. Eligible airports can use these funds for any AIP or PFC eligible project. 
• Deadline for Use of Funds: Each airport entitled to AIG funds has up to four years to obligate them or execute a grant with FAA. For example, an airport must use its FY23 allocated amounts on or before September 30, 2026. It is also important to note that airports are permitted to combine both FY22 and FY23 allocations to fund a single project. 
• Application Process: Airports are encouraged to work with their Airports District Offices (ADOs) and/or Regional Offices (ROs) to identify projects for this funding and apply. The application process will be the same as what has been used for FY22 AIG funds. As we have relayed in previous Regulatory Alerts, the AIG application process follows the same process that airports use to apply for AIP entitlement grants. 
• FAA Frequently Asked Questions (FAQ) Document: In October, FAA released an updated FAQ guidance document that provides a wide range of details on how the agency is administering the AIG Program. Airports are encouraged to review the guidance as they evaluate how to spend their allocated amounts. 
• Grant Award Announcements: FAA has periodically published new grant awards that are issued under the AIG Program. You can find the lists of awards here. 
What's Next? We have developed a one-page overview of the various grant programs and funds being administered by FAA, including relevant timelines, to help airports navigate the opportunities available for infrastructure funding. In the meantime, AAAE will continue to work closely with DOT and FAA on implementation to ensure that our airport members can access these grant funds with minimal burden and maximum flexibility. 
The Federal Aviation Administration (FAA) on November 28 released $2.89 billion in fiscal year 2023 (FY23) allocations for the Airport Infrastructure Grant (AIG) Program, which provides $15 billion for airport infrastructure upgrades over five years and was created by Congress through the Infrastructure Investment and Jobs Act (IIJA), known as the Bipartisan Infrastructure Law (BIL). The FY23 allocations represent the amount that each airport is entitled to use for any project that is eligible under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Airports may also combine their FY22 and FY23 allocations to fund a single project. 
You can view the FY23 AIG allocations here, which is a spreadsheet of amounts for each airport. Airports are encouraged to work with their local FAA offices to identify eligible projects and apply to use their allocated AIG funds. We understand that airports can begin applying to use their FY23 allocations as of today. 
BIL Background. As airports are aware, the BIL provides an historic investment of $20 billion in new federal spending for airport infrastructure over a five-year period. FAA has developed three different programs to administer the funds: 
• Airport Infrastructure Grant (AIG) Program: Under the AIG Program, FAA is making $15 billion in formula grants ($3 billion per year) available for airports to fund any eligible project under the AIP or PFC Program. Thus far, FAA has announced about $327 million in grant awards under the program based on the $2.89 billion in FY22 allocations that were made available to airports earlier this year. 
• Airport Terminal Program (ATP): Under the ATP, FAA will be issuing $5 billion in competitive grants ($1 billion per year) to fund projects for terminal development, on-airport rail access, or relocating, repairing, or improving an airport-owned air traffic control (ATC) facility. The deadline for FY23 ATP grant applications passed last month. Airports reportedly submitted over 680 requests for over $9.8 billion in funding. 
• FAA Contract Tower (FCT) Competitive Grant Program: Under the FCT Competitive Grant Program, FAA will be issuing $100 million in discretionary grants ($20 million per year) to fund projects that repair, improve, or replace an airport-owned FCT ATC tower. Earlier this month, FAA released a notice of funding opportunity (NOFO) that allows eligible airports to submit applications for a share of FY23 funding. The deadline to apply is Tuesday, December 6, 2022, at 5 p.m. ET. 
Key Reminders for AIG Program Funds. The following are several key reminders and details about how AIG program funds may be used: 
• Eligible Airports and Projects: Any airport sponsor identified in FAA's National Plan of Integrated Airport Systems (NPIAS) is eligible to receive an allocated amount under the AIG Program. FAA recently published the latest NPIAS on September 30 of this year, as we summarized in our Regulatory Alert. Eligible airports can use these funds for any AIP or PFC eligible project. 
• Deadline for Use of Funds: Each airport entitled to AIG funds has up to four years to obligate them or execute a grant with FAA. For example, an airport must use its FY23 allocated amounts on or before September 30, 2026. It is also important to note that airports are permitted to combine both FY22 and FY23 allocations to fund a single project. 
• Application Process: Airports are encouraged to work with their Airports District Offices (ADOs) and/or Regional Offices (ROs) to identify projects for this funding and apply. The application process will be the same as what has been used for FY22 AIG funds. As we have relayed in previous Regulatory Alerts, the AIG application process follows the same process that airports use to apply for AIP entitlement grants. 
• FAA Frequently Asked Questions (FAQ) Document: In October, FAA released an updated FAQ guidance document that provides a wide range of details on how the agency is administering the AIG Program. Airports are encouraged to review the guidance as they evaluate how to spend their allocated amounts. 
• Grant Award Announcements: FAA has periodically published new grant awards that are issued under the AIG Program. You can find the lists of awards here. 
What's Next? We have developed a one-page overview of the various grant programs and funds being administered by FAA, including relevant timelines, to help airports navigate the opportunities available for infrastructure funding. In the meantime, AAAE will continue to work closely with DOT and FAA on implementation to ensure that our airport members can access these grant funds with minimal burden and maximum flexibility. 
