Regulatory Alert: FAA Releases Notice of Funding Opportunity for Airport Terminal Grant Program
February 22, 2022
This morning, the Federal Aviation Administration (FAA) released the much-anticipated “notice of funding opportunity“ (NOFO) that outlines how airports can apply for a share of the approximately $1 billion in fiscal year 2022 (FY22) discretionary funds under the newly established Airport Terminal Program (ATP), which was created by the Infrastructure and Investment and Jobs Act (IIJA), commonly known as the Bipartisan Infrastructure Law (BIL). The goal of the ATP is to make annual grants for terminal development projects that will improve airport infrastructure. In the NOFO released today, FAA outlines how airports can apply for ATP funding and how the agency will evaluate applications and proposed projects. Based on our conversations with FAA's BIL Implementation Team, “shovel ready“ projects and projects meeting specific objectives are expected to receive more favorable consideration. 
FAA has published the NOFO, the application form, and other ATP details on their BIL website here. The agency set Monday, March 28, 2022, as the deadline for submitting applications. 
Overview of the Airport Terminal Program. The NOFO provides an overview and detailed information regarding the ATP. Under the program, FAA will be providing $5 billion ($1 billion annually) to airports via discretionary, competitive grants for eligible terminal projects. These are the key details of which airports should be aware: 
• Distribution by Hub Size: The $1 billion for FY22 ATP grants is subject to the following award allocation limitations: not more than 55% for large hub airports, 15% for medium hub airports, and 20% for small hub airports; and not less than 10% for nonhub and nonprimary airports. 
• Eligible Projects: Eligible projects for funding under the ATP include: (1) airport terminal development, including multimodal terminal development; (2) on-airport rail access projects; and (3) projects for relocating, reconstructing, repairing, or improving an airport-owned air traffic control (ATC) tower. 
• Project Considerations: FAA is required to consider projects that will increase capacity and passenger access, replace aging infrastructure, expand accessibility for persons with disabilities, improve airport access for historically disadvantaged populations, improve energy efficiency, improve airfield safety through terminal relocation, and encourage actual and potential competition. 
• Preferences and Priorities: FAA will provide preference to projects that complete a development objective and give priority to projects that have received partial awards. 
• Local Match: The federal cost share for ATP grants is 80% for large and medium hub airports; and 95% for the remainder of eligible airports. 
ATP Grant Application Process. Applications for a FY22 ATP grant must be submitted to FAA using FAA Form 5100-144, “Bipartisan Infrastructure Law, Airport Terminal and Tower Project Information,“ which can be found on the FAA's ATP website. The application form requires airports to provide a brief project description, targeted timeframe dates, information about project status, and details about how the proposed project will satisfy the criteria that FAA must consider when selecting grants for funding. Applicants will also have to obtain a unique entity identifier (UEI) by registering through the System for Award Management, known as SAM, which is the portal that manages federal government contract awards. 
Any questions regarding applications can be directed to your Regional Office or Airports District Office, or the BIL Implementation Team at 9-ARP-BILAirports@faa.gov. The application form and NOFO both have instructions on how to submit to FAA for consideration. Applications must be submitted electronically by March 28, 2022. If an airport is selected by FAA to receive an ATP grant, the airport will then be required to follow the standard AIP grant application procedures prior to an official award. 
ATP Grant Selection Criteria. In the NOFO, FAA outlines the criteria on how applications for a FY22 ATP grant will be rated. There are six factors that will be taken into consideration and used to evaluate submissions: 
• The project must meet the eligibility requirements under the ATP.
• Timeliness of implementation, with priority given to those projects that can satisfy all requirements for a grant award in FY22.
• Favorable consideration will be given to eligible projects that advance specific objectives outlined above, such as increasing capacity and passenger access; replacing aging infrastructure; and expanding accessibility for persons with disabilities; among other things. The NOFO provides much more detail on each of these objectives.
• ATC tower projects will be evaluated based on overall impact on the national airspace system, including age of facility, operational constraints, and nonstandard facilities.
• FAA will provide a preference to projects that achieve a complete development objective, even if awards for the project must be phased, and prioritize projects that have received partial awards.
• Applicants will also be evaluated on whether and how the project delivery and implementation (a) create good-paying jobs with the free and fair choice to join a union to the greatest extent possible, and (b) provide opportunities for all workers to be trained and placed in good-paying jobs directly related to the project.
FAA indicated that the agency will evaluate applications based on how well a proposed project meets this criteria, including project eligibility, justification, readiness, and the availability of matching funds.
Other NOFO Review Takeaways. There are several other takeaways from review of the 23-page NOFO released today by FAA: 
• Projects Fulfilling Administration Goals. Throughout the NOFO, FAA emphasized that the agency will consider projects that advance goals outlined in several key executive orders issued by President Biden, including how the project will address the challenges faced by individuals in underserved communities and rural areas; reduce greenhouse gas emissions and address climate change impacts; and promote a fair, open and competitive marketplace. These are factors airports should consider when completing their applications for FAA's consideration. 
• Grant Requirements and Assurances. Any airport awarded an ATP grant will be required to comply with the standard AIP grant assurances and requirements, including Buy America, Davis-Bacon prevailing wage requirements, the Disadvantaged Business Enterprise (DBE) Program regulations, and financial reporting, among others. 
What's Next? Looking ahead airports should be aware of the following timeline on ATP implementation: 
• Applications for FY22 ATP discretionary funding must be submitted electronically no later than 5 p.m. ET on March 28, 2022. 
• FAA will announce FY22 ATP grant awards, or a notice of intent to fund projects, by July 2022.
• FAA will be publishing an annual NOFO to announce additional funding available, approximately $1 billion per year, for FY23 through FY26. However, the next NOFO is not expected to be released until the end of 2022 or early 2023.
AAAE is also working with FAA and the Administration on implementation of a second BIL program for airports, the Airport Infrastructure Grant program, which provides $15 billion ($3 billion annually) via formula grants to airports to support a broad array of projects. In May, FAA is expected to: (1) issue implementation guidance and begin issuing grants for specific projects based on the FY22 airport allocations announced on December 16, 2021; and (2) issue a NOFO on how to apply for a competitive grant from the $20 million that will be made available in FY22 for airports participating in the FAA Contract Tower Program with a sponsor-owned ATC tower. 
This morning, the Federal Aviation Administration (FAA) released the much-anticipated “notice of funding opportunity“ (NOFO) that outlines how airports can apply for a share of the approximately $1 billion in fiscal year 2022 (FY22) discretionary funds under the newly established Airport Terminal Program (ATP), which was created by the Infrastructure and Investment and Jobs Act (IIJA), commonly known as the Bipartisan Infrastructure Law (BIL). The goal of the ATP is to make annual grants for terminal development projects that will improve airport infrastructure. In the NOFO released today, FAA outlines how airports can apply for ATP funding and how the agency will evaluate applications and proposed projects. Based on our conversations with FAA's BIL Implementation Team, “shovel ready“ projects and projects meeting specific objectives are expected to receive more favorable consideration. 
FAA has published the NOFO, the application form, and other ATP details on their BIL website here. The agency set Monday, March 28, 2022, as the deadline for submitting applications. 
Overview of the Airport Terminal Program. The NOFO provides an overview and detailed information regarding the ATP. Under the program, FAA will be providing $5 billion ($1 billion annually) to airports via discretionary, competitive grants for eligible terminal projects. These are the key details of which airports should be aware: 
• Distribution by Hub Size: The $1 billion for FY22 ATP grants is subject to the following award allocation limitations: not more than 55% for large hub airports, 15% for medium hub airports, and 20% for small hub airports; and not less than 10% for nonhub and nonprimary airports. 
• Eligible Projects: Eligible projects for funding under the ATP include: (1) airport terminal development, including multimodal terminal development; (2) on-airport rail access projects; and (3) projects for relocating, reconstructing, repairing, or improving an airport-owned air traffic control (ATC) tower. 
• Project Considerations: FAA is required to consider projects that will increase capacity and passenger access, replace aging infrastructure, expand accessibility for persons with disabilities, improve airport access for historically disadvantaged populations, improve energy efficiency, improve airfield safety through terminal relocation, and encourage actual and potential competition. 
• Preferences and Priorities: FAA will provide preference to projects that complete a development objective and give priority to projects that have received partial awards. 
• Local Match: The federal cost share for ATP grants is 80% for large and medium hub airports; and 95% for the remainder of eligible airports. 
ATP Grant Application Process. Applications for a FY22 ATP grant must be submitted to FAA using FAA Form 5100-144, “Bipartisan Infrastructure Law, Airport Terminal and Tower Project Information,“ which can be found on the FAA's ATP website. The application form requires airports to provide a brief project description, targeted timeframe dates, information about project status, and details about how the proposed project will satisfy the criteria that FAA must consider when selecting grants for funding. Applicants will also have to obtain a unique entity identifier (UEI) by registering through the System for Award Management, known as SAM, which is the portal that manages federal government contract awards. 
Any questions regarding applications can be directed to your Regional Office or Airports District Office, or the BIL Implementation Team at 9-ARP-BILAirports@faa.gov. The application form and NOFO both have instructions on how to submit to FAA for consideration. Applications must be submitted electronically by March 28, 2022. If an airport is selected by FAA to receive an ATP grant, the airport will then be required to follow the standard AIP grant application procedures prior to an official award. 
ATP Grant Selection Criteria. In the NOFO, FAA outlines the criteria on how applications for a FY22 ATP grant will be rated. There are six factors that will be taken into consideration and used to evaluate submissions: 
• The project must meet the eligibility requirements under the ATP.
• Timeliness of implementation, with priority given to those projects that can satisfy all requirements for a grant award in FY22.
• Favorable consideration will be given to eligible projects that advance specific objectives outlined above, such as increasing capacity and passenger access; replacing aging infrastructure; and expanding accessibility for persons with disabilities; among other things. The NOFO provides much more detail on each of these objectives.
• ATC tower projects will be evaluated based on overall impact on the national airspace system, including age of facility, operational constraints, and nonstandard facilities.
• FAA will provide a preference to projects that achieve a complete development objective, even if awards for the project must be phased, and prioritize projects that have received partial awards.
• Applicants will also be evaluated on whether and how the project delivery and implementation (a) create good-paying jobs with the free and fair choice to join a union to the greatest extent possible, and (b) provide opportunities for all workers to be trained and placed in good-paying jobs directly related to the project.
FAA indicated that the agency will evaluate applications based on how well a proposed project meets this criteria, including project eligibility, justification, readiness, and the availability of matching funds.
Other NOFO Review Takeaways. There are several other takeaways from review of the 23-page NOFO released today by FAA: 
• Projects Fulfilling Administration Goals. Throughout the NOFO, FAA emphasized that the agency will consider projects that advance goals outlined in several key executive orders issued by President Biden, including how the project will address the challenges faced by individuals in underserved communities and rural areas; reduce greenhouse gas emissions and address climate change impacts; and promote a fair, open and competitive marketplace. These are factors airports should consider when completing their applications for FAA's consideration. 
• Grant Requirements and Assurances. Any airport awarded an ATP grant will be required to comply with the standard AIP grant assurances and requirements, including Buy America, Davis-Bacon prevailing wage requirements, the Disadvantaged Business Enterprise (DBE) Program regulations, and financial reporting, among others. 
What's Next? Looking ahead airports should be aware of the following timeline on ATP implementation: 
• Applications for FY22 ATP discretionary funding must be submitted electronically no later than 5 p.m. ET on March 28, 2022. 
• FAA will announce FY22 ATP grant awards, or a notice of intent to fund projects, by July 2022.
• FAA will be publishing an annual NOFO to announce additional funding available, approximately $1 billion per year, for FY23 through FY26. However, the next NOFO is not expected to be released until the end of 2022 or early 2023.
AAAE is also working with FAA and the Administration on implementation of a second BIL program for airports, the Airport Infrastructure Grant program, which provides $15 billion ($3 billion annually) via formula grants to airports to support a broad array of projects. In May, FAA is expected to: (1) issue implementation guidance and begin issuing grants for specific projects based on the FY22 airport allocations announced on December 16, 2021; and (2) issue a NOFO on how to apply for a competitive grant from the $20 million that will be made available in FY22 for airports participating in the FAA Contract Tower Program with a sponsor-owned ATC tower. 
