Regulatory Alert: FAA Provides Update on BIL Implementation
April 28, 2022
Based on our ongoing conversations with the Federal Aviation Administration (FAA) Office of Airports and Bipartisan Infrastructure Law (BIL) Implementation Team this week, we wanted to share several updates regarding the status of implementation of the three BIL grant programs that will invest $25 billion over the next five years to upgrade and improve airport and air traffic infrastructure.
Airport Infrastructure Grant (AIG) Program. Under the AIG Program, FAA will be making $15 billion in formula grants ($3 billion per year) for airports to fund any eligible project under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Allocations for fiscal year 2022 (FY22) were announced in December. Several key updates and timing details came out of our discussions this week that we wanted to highlight for you: 
• Updated FAA BIL Guidance. FAA has confirmed that the agency expects to release an updated Frequently Asked Questions (FAQ) guidance document in early May, which will provide additional details on a wide range of issues, especially for the AIG Program. FAA released the first iteration of FAQs in early March. 
• Application Process. While the existing guidance does not outline how airports can apply for FY22 AIG grants, the updated FAQ document will include information about the application process. However, in the meantime, it has come to our attention that airports currently have the opportunity to apply for FY22 AIG grants. While some FAA guidance is currently unavailable, such as how to comply with the new “Build America, Buy America“ provisions, we understand from FAA HQ that airports can still work with their Airport District Office or Regional Office to apply to use FY22 AIG allocated funds for specific projects. We are told the AIG application process will follow the same process that airports use to apply for AIP entitlement grants. 
• Project Announcements. Similar to AIP, FAA is expected to publicly announce the projects that will be funded with FY22 AIG grants. These announcements are expected to begin in late May and continue on a monthly basis. 
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 application period for FY22 ATP grants closed on March 28. We were informed that over 650 project applications totaling $14 billion were submitted to FAA by airports, a significant amount of funding beyond what will be provided in FY22. The application period for FY23 ATP grants is expected to open in the fall of this year. 
Air Traffic Facilities & Equipment (F&E) Grant Program. Under the F&E Grant Program, FAA will be investing $5 billion to upgrade and replace ATC facilities ($1 billion per year), including $200 million for FAA-owned Federal Contract Towers. FAA provided some additional details on how the first $1 billion will be spent to upgrade ATC infrastructure around the country. You can see a breakdown of the funding here. This year's distribution includes $10 million to pay for the design, site evaluation and preparation for the first ATC towers that will be replaced over the coming years. However, FAA did not provide a specific list of towers in the announcement. 
 
Based on our ongoing conversations with the Federal Aviation Administration (FAA) Office of Airports and Bipartisan Infrastructure Law (BIL) Implementation Team this week, we wanted to share several updates regarding the status of implementation of the three BIL grant programs that will invest $25 billion over the next five years to upgrade and improve airport and air traffic infrastructure.
Airport Infrastructure Grant (AIG) Program. Under the AIG Program, FAA will be making $15 billion in formula grants ($3 billion per year) for airports to fund any eligible project under the Airport Improvement Program (AIP) or Passenger Facility Charge (PFC) Program. Allocations for fiscal year 2022 (FY22) were announced in December. Several key updates and timing details came out of our discussions this week that we wanted to highlight for you: 
• Updated FAA BIL Guidance. FAA has confirmed that the agency expects to release an updated Frequently Asked Questions (FAQ) guidance document in early May, which will provide additional details on a wide range of issues, especially for the AIG Program. FAA released the first iteration of FAQs in early March. 
• Application Process. While the existing guidance does not outline how airports can apply for FY22 AIG grants, the updated FAQ document will include information about the application process. However, in the meantime, it has come to our attention that airports currently have the opportunity to apply for FY22 AIG grants. While some FAA guidance is currently unavailable, such as how to comply with the new “Build America, Buy America“ provisions, we understand from FAA HQ that airports can still work with their Airport District Office or Regional Office to apply to use FY22 AIG allocated funds for specific projects. We are told the AIG application process will follow the same process that airports use to apply for AIP entitlement grants. 
• Project Announcements. Similar to AIP, FAA is expected to publicly announce the projects that will be funded with FY22 AIG grants. These announcements are expected to begin in late May and continue on a monthly basis. 
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 application period for FY22 ATP grants closed on March 28. We were informed that over 650 project applications totaling $14 billion were submitted to FAA by airports, a significant amount of funding beyond what will be provided in FY22. The application period for FY23 ATP grants is expected to open in the fall of this year. 
Air Traffic Facilities & Equipment (F&E) Grant Program. Under the F&E Grant Program, FAA will be investing $5 billion to upgrade and replace ATC facilities ($1 billion per year), including $200 million for FAA-owned Federal Contract Towers. FAA provided some additional details on how the first $1 billion will be spent to upgrade ATC infrastructure around the country. You can see a breakdown of the funding here. This year's distribution includes $10 million to pay for the design, site evaluation and preparation for the first ATC towers that will be replaced over the coming years. However, FAA did not provide a specific list of towers in the announcement. 
 
