Regulatory Alert: FAA Releases FAQ Guidance for Airport Rescue Grants
June 11, 2021
Today the Federal Aviation Administration (FAA) released a frequently asked questions (FAQ) document that provides guidance for airport sponsors on how FAA will administer the $8 billion in Airport Rescue Grants that were made available to airports and eligible concessionaires through the American Rescue Plan Act (ARPA). As airports are aware, ARPA provided $8 billion in relief that included $6.492 billion for primary commercial service and certain cargo airports and $800 to primary airports for concessionaire relief. Based on the guidance and discussions with FAA Office of Airports, AAAE anticipates that announcement of grant awards for each airport could be made by the end of June. 
In the FAQ released today, FAA outlines the process for airports to obtain ARPA funds, appropriate uses for the grants, invoicing and payment reimbursements, grant closeouts, and workforce retention, among other issues. FAA also provided a significant amount of information on how eligible airport sponsors can distribute the amount of funds that will be made available to them for providing relief to concessionaires.
Airport members will find that the FAQ document released today is similar in many regards to the guidance that has been developed by FAA for airports participating in the Coronavirus Aid, Relief, and Economic Security (CARES) Act grant program and the Airport Coronavirus Response Grant Program (ACRGP). However, there are key distinctions between the programs of which airports should be aware. A summary of the FAA FAQ guidance on ARPA is provided below, including meaningful differences from CARES Act grants and ACRGP. We have also provided a quick recap of how ARPA requires FAA to distribute the $8 billion.
ARPA Funding
Primary Commercial Service Airports. Of the total amount available for airports, ARPA provided $6.492 billion for primary airports and certain cargo airports. Funds will be distributed based on a modified Airport Improvement Program (AIP) apportionment run. The cargo set-aside would remain intact, and there will be no maximum grant amount or Passenger Facility Charge turnback. Remaining funds will be distributed based on enplanements. 
Non-Primary Commercial Service/General Aviation Airports. ARPA included up to $100 million for nonprimary commercial service and general aviation airports.  
Concessionaires. ARPA also provided $800 million to primary airports based on enplanements 'to provide relief from rents and minimum annual guarantees [MAG] to airport concessions.' Of that amount, $640 million is reserved for 'small' airport concessions and $160 million for 'large' airport concessions. 
Federal Share for AIP Grants. ARPA provided $608 million to pay 'a Federal share of 100 percent of the costs for any grant awarded in fiscal year 2021, or in fiscal year 2020 with less than 100 percent federal share . . . .' 
FAQ Guidance on Airport Rescue Grants
Grant Awards, Applications and Agreements. In the FAQ, FAA did not specify a timeline on when it would announce grant awards. However, the agency indicated that after the announcement, FAA personnel will reach out to each airport sponsor to provide an opportunity to submit a grant application. FAA will then make a simplified grant agreement available for execution shortly after receiving a completed application from the airport. The deadline for applying for an Airport Rescue Grant is November 30, 2021. 
Permissible Uses of Grant Funds. As provided in ARPA, Airport Rescue Grants can be used for 'costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments.' These are the same costs that are permissible for funds made available through the ACRGP. As with ACRGP, airport development projects are permissible under ARPA to the extent that the project would combat the spread of pathogens. Airports will be required to execute a Development Addendum if the airport wants to use its ARPA funds for this purpose. 
Deadline for Using Funds. In the FAQ, FAA stated that the budget period for ARPA is four years. As a result, a sponsor may charge to the grant only allowable costs incurred during this four-year budget period. 
Payment Requests/Reimbursement Process. FAA indicated that they will be using the same process to submit payment requests to obtain reimbursements as they are using for CARES Act grants and the ACRGP. This will allow airports to submit a summary of an invoice instead of submitting underlying payment request documentation. 
Relief for Concessionaires. In the FAQ, FAA provided details on how airport sponsors can claim the allocation of funding that will be made available to them under ARPA for providing relief to concessionaires. Similar to ACRGP, airport sponsors will have to submit an application for a Concessions Rent Relief Airport Rescue Grant to FAA; this is separate application from the one necessary to obtain funds that are available directly for airport use. Upon acceptance of the concessionaire relief funds, airports will have to develop a relief plan and provide relief from rent and MAG to eligible small and large airport concessionaires on a proportional basis. 
Airport sponsors are encouraged to review all the FAQs relating to concessionaire relief (Q-CR1 through Q-CR23). FAA has also posted on their website sample Airport Rescue Grants concession certification and relief plan documents to help guide airports in this area. 
Q-CR1: How does an airport sponsor claim its allocation available to provide rent relief to airport concessions?
A: An airport sponsor seeking to use ARPA funds to provide relief from rent and minimum annual guarantee (MAG) obligations to eligible airport concessions may apply for that allocation in an application for a Concessions Rent Relief Airport Rescue Grant. FAA personnel will reach out to each airport sponsor to provide an opportunity to submit a grant application. An airport sponsor wishing to decline its concessions rent relief allocation should not submit application(s), but rather notify its local ADO of its intent to decline. 
Q-CR2: How do airport sponsors provide rent relief to airport concessions?
A: If an airport sponsor accepts its ARPA allocations for concession relief, the sponsor must provide relief from rent and MAG to eligible small airport concessions and eligible large airport concessions. ARPA requires an airport sponsor taking a concession relief grant to provide such relief on a proportional basis (see Q-CR-18) to eligible small airport concessions and eligible large airport concessions, respectively, until the sponsor has provided relief equaling the total allocation amount. More information about the concession relief plan and proportional relief is provided in Q-CR16 and Q-CR18, respectively. Only relief associated with rent due for concession occupancy or commercial use after March 11, 2021, which is the date of enactment of ARPA, is eligible for grant payment. 
Q-CR3: What is an 'eligible small airport concession'?
A: An 'eligible small airport concession' is a concession (as defined in 49 CFR § 23.3) that is in-terminal and either a small business with maximum gross receipts, averaged over the previous 3 fiscal years, of less than $56,420,000 or a joint venture (as defined in 49 CFR § 23.3). 
Q-CR4: What is an 'eligible large airport concession'?
A: An 'eligible large airport concession' is a concession (as defined in 49 CFR § 23.3) that is in-terminal and has maximum gross receipts, averaged over the previous 3 fiscal years, of more than $56,420,000. 
Q-CR5: Are on-airport car rental and on-airport parking concessions eligible for rent relief under ARPA?
A: The definitions of eligible small airport concession and eligible large airport concession limit eligibility to in-terminal concessions. ARPA, unlike CRRSA, does not list on-airport car rental and on-airport parking concessions for rent relief eligibility. Accordingly, these types of concessions are not eligible to share in this relief. However, to the extent these concessions fall under the definition of in-terminal concession (through either a physical operation in the terminal building or advertising in the terminal building), an airport sponsor may allocate a portion of the concession's total rent that reflects that in-terminal presence. 
Q-CR6: What is a 'joint venture'?
A: A 'joint venture' is defined in 49 CFR § 23.3 as an association of an airport concession disadvantaged business enterprise (ACDBE) firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills and knowledge, and in which the ACDBE is responsible for a distinct, clearly defined portion of the work of the contract and whose shares in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest. Joint venture entities are not certified as ACDBEs. 
Q-CR7: What constitutes 'rent' for the purpose on relief under a Concessions Rent Relief Airport Rescue Grant?
A: ARPA does not define 'rent'. FAA acknowledges there are a variety of contractual arrangements between airports and airport concessions. For that reason, FAA defines 'rent' broadly to include any payment to the airport in exchange for operating a concession business at the airport. In consideration of unique circumstances, an airport sponsor may narrow that definition for its airport concessions rent relief plan, but the sponsor must apply that narrowed definition to all concessions at the airport, identify the unique circumstances in its relief plan, and consult with concessions stakeholders on the narrowed definition. 
Q-CR9: Can an airport sponsor recover its administrative expenses for providing rent or MAG relief to airport concessions?
A: No. Unlike the Coronavirus Response and Relief Supplemental Appropriation Act, 2021 (CRRSA), administrative expenses are not provided for under ARPA. 
Q-CR17: If an airport sponsor has no concessions that satisfy the definition of either eligible small airport concession or eligible large airport concession, can both allocations be used to provide relief from rent and MAG to all in-terminal airport concessions on a proportional basis?
A: FAA anticipates that, in rare circumstances, an airport may have either no eligible small concessions or no eligible large concessions. The airport would certify to those circumstances on its concessions rent relief plan (see Q-CR16), include that certification as part of its consultation with airport concessions stakeholders, and then allocate both concessions rent relief allocations proportionally among all eligible concessions at the airport. 
Q-CR18: How does an airport sponsor calculate the proportional share for eligible concessions?
A: An airport sponsor first determines its population of eligible concessions for each concessions rent relief allocation. An airport sponsor should choose an appropriate baseline time period to calculate the proportional share. That baseline time period should be relevant to the expected duration of relief to be provided and reflect a normal operating environment. Examples of a baseline time period are calendar year 2019, first quarter of 2020, or February 2020, but the baseline time period should not be after the first quarter of 2020. An airport sponsor should calculate the proportional share based on rent collected during the baseline time period. If an airport sponsor chooses a period shorter than a full year, it may make adjustments based on a percentage of contractual MAG obligation, but those adjustments should be identified in the concessions rent relief plan. An airport sponsor then uses the calculated proportional share to determine the amount of rent relief available for each concession. 
Workforce Retention Requirements. FAA's FAQ on Airport Rescue Grants provides information for airports on the law's workforce retention requirements, when reporting must occur, where to submit reports, waivers available for airports, and consequences for failing to meet the retention requirements, among other information. The process for airports to report their compliance with the retention requirement is very similar to the existing process that airports use to comply with the CARES Act grant program and the ACRGP. However, FAA provided an update on when certification of compliance must occur and when retention reporting must be submitted. 
Q-WF1: Are there specific workforce retention requirements for accepting Airport Rescue Grant funds?
A: Yes. A sponsor of a small, medium, or large hub airport must continue to employ, through September 30, 2021, at least 90% of the number of individuals employed (after making adjustments for retirements or voluntary employee separations) as of March 27, 2020. This requirement is an extension of the workforce retention requirement under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and CRRSA. An airport sponsor must certify compliance with the CARES, CRRSA, and ARPA workforce retention requirements at the time of execution of its Airport Rescue Grant. The workforce retention requirement does not apply to non-hub or non-primary airports. 
Q-WF2: When do small, medium, and large hub airport sponsors report their respective compliance with the employee retention requirement?
A: Provided an airport sponsor is current with its workforce retention reporting under CARES and CRRSA, it must report quarterly employment totals as of June 30 and September 30, 2021. All reports are due to FAA within 15 days of the end of each quarter. 
Prevailing Wage Requirements. As an update to prior guidance, FAA clarified when prevailing wage requirements under the Davis-Bacon Act apply to contract expenses reimbursed with Airport Rescue Grants, as well as with CARES grants and ACRGP funds. AAAE had requested FAA clarify and confirm that the prevailing wage requirements do not apply to routine maintenance or service contracts. 
Q-GA14: Do prevailing wage requirements apply to contract expenses reimbursed with Airport Rescue Grant funds?
A: Yes. Consistent with FAA's implementation of CARES Act Airport Grants and the Airport Coronavirus Response Grant Program, any contract for more than $2,000 involving labor for constructing, repairing, or improving a public-use airport, carried out under a Grant Agreement or Development Addendum, requires contractors to pay labor minimum wage rates as determined by the Secretary of Labor under 40 U.S.C. 3141–3144, 3146, and 3147. Prevailing wage requirements apply, for example, on contracts for replacing windows, repairing equipment, or repairing HVAC. Incidental costs on existing contracts for cleaning services, maintenance, or general upkeep are not subject to prevailing wage requirements. 
Federal Share for AIP Grants. FAA provided details for airport sponsors on how the agency plans to award the 100% federal share for FY 2021 AIP and supplemental discretionary grants, which was provided for under ARPA. 
Q-F2: How will FAA pay a 100% Federal share under ARPA?
A: FAA will award the 100% Federal share in a manner substantially similar to how it awarded 100% Federal share grants under CARES. Under CARES, FAA awarded a 100% Federal share for grants awarded under the FY 2020 appropriations for AIP and Supplemental Discretionary grants. All AIP grants awarded during FY 2021 will be awarded at a 100% Federal share, even if those grants are awarded with funds recovered from prior appropriations. All Supplemental Discretionary grants awarded under FAA's FY 2021 appropriation will be awarded at a 100% Federal share, regardless of when the grant is obligated. In FY 2021, amendments to FY 2020 multi-year AIP grants will be at a 100% Federal share. In FY 2022 and 2023, amendments to FY 2020 multi-year AIP grants will be at a 100% Federal share based on the amendment amounts described in the original multi-year grant agreement. In FY 2022 and 2023, amendments to FY 2021 multi-year AIP grants will be at a 100% Federal share based on the amendment amounts described in the original multi-year grant agreement, if funds remain available. If remaining funds are insufficient to cover all multi-year amendment commitments, FAA will pay the increased Federal share on a proportional basis. FAA will not award an increased Federal share for any Supplemental Discretionary grants awarded under FAA's FY 2019 appropriation or for any FY 2020 AIP grant that was funded with funds recovered from a prior fiscal year because these grants were not eligible for a 100% Federal share under the CARES Act. Airport sponsors do not have to take further action to receive 100% Federal share funds, and an airport sponsor should submit its SF-424, Application for Federal Assistance, with only the amount of the AIP or Supplemental Discretionary grant (i.e., the sponsor's normal Federal share). FAA will add all increased Federal share funds to the AIP or Supplemental Discretionary grant when those grants are obligated or amended. 
Today the Federal Aviation Administration (FAA) released a frequently asked questions (FAQ) document that provides guidance for airport sponsors on how FAA will administer the $8 billion in Airport Rescue Grants that were made available to airports and eligible concessionaires through the American Rescue Plan Act (ARPA). As airports are aware, ARPA provided $8 billion in relief that included $6.492 billion for primary commercial service and certain cargo airports and $800 to primary airports for concessionaire relief. Based on the guidance and discussions with FAA Office of Airports, AAAE anticipates that announcement of grant awards for each airport could be made by the end of June. 
In the FAQ released today, FAA outlines the process for airports to obtain ARPA funds, appropriate uses for the grants, invoicing and payment reimbursements, grant closeouts, and workforce retention, among other issues. FAA also provided a significant amount of information on how eligible airport sponsors can distribute the amount of funds that will be made available to them for providing relief to concessionaires.
Airport members will find that the FAQ document released today is similar in many regards to the guidance that has been developed by FAA for airports participating in the Coronavirus Aid, Relief, and Economic Security (CARES) Act grant program and the Airport Coronavirus Response Grant Program (ACRGP). However, there are key distinctions between the programs of which airports should be aware. A summary of the FAA FAQ guidance on ARPA is provided below, including meaningful differences from CARES Act grants and ACRGP. We have also provided a quick recap of how ARPA requires FAA to distribute the $8 billion.
ARPA Funding
Primary Commercial Service Airports. Of the total amount available for airports, ARPA provided $6.492 billion for primary airports and certain cargo airports. Funds will be distributed based on a modified Airport Improvement Program (AIP) apportionment run. The cargo set-aside would remain intact, and there will be no maximum grant amount or Passenger Facility Charge turnback. Remaining funds will be distributed based on enplanements. 
Non-Primary Commercial Service/General Aviation Airports. ARPA included up to $100 million for nonprimary commercial service and general aviation airports.  
Concessionaires. ARPA also provided $800 million to primary airports based on enplanements 'to provide relief from rents and minimum annual guarantees [MAG] to airport concessions.' Of that amount, $640 million is reserved for 'small' airport concessions and $160 million for 'large' airport concessions. 
Federal Share for AIP Grants. ARPA provided $608 million to pay 'a Federal share of 100 percent of the costs for any grant awarded in fiscal year 2021, or in fiscal year 2020 with less than 100 percent federal share . . . .' 
FAQ Guidance on Airport Rescue Grants
Grant Awards, Applications and Agreements. In the FAQ, FAA did not specify a timeline on when it would announce grant awards. However, the agency indicated that after the announcement, FAA personnel will reach out to each airport sponsor to provide an opportunity to submit a grant application. FAA will then make a simplified grant agreement available for execution shortly after receiving a completed application from the airport. The deadline for applying for an Airport Rescue Grant is November 30, 2021. 
Permissible Uses of Grant Funds. As provided in ARPA, Airport Rescue Grants can be used for 'costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments.' These are the same costs that are permissible for funds made available through the ACRGP. As with ACRGP, airport development projects are permissible under ARPA to the extent that the project would combat the spread of pathogens. Airports will be required to execute a Development Addendum if the airport wants to use its ARPA funds for this purpose. 
Deadline for Using Funds. In the FAQ, FAA stated that the budget period for ARPA is four years. As a result, a sponsor may charge to the grant only allowable costs incurred during this four-year budget period. 
Payment Requests/Reimbursement Process. FAA indicated that they will be using the same process to submit payment requests to obtain reimbursements as they are using for CARES Act grants and the ACRGP. This will allow airports to submit a summary of an invoice instead of submitting underlying payment request documentation. 
Relief for Concessionaires. In the FAQ, FAA provided details on how airport sponsors can claim the allocation of funding that will be made available to them under ARPA for providing relief to concessionaires. Similar to ACRGP, airport sponsors will have to submit an application for a Concessions Rent Relief Airport Rescue Grant to FAA; this is separate application from the one necessary to obtain funds that are available directly for airport use. Upon acceptance of the concessionaire relief funds, airports will have to develop a relief plan and provide relief from rent and MAG to eligible small and large airport concessionaires on a proportional basis. 
Airport sponsors are encouraged to review all the FAQs relating to concessionaire relief (Q-CR1 through Q-CR23). FAA has also posted on their website sample Airport Rescue Grants concession certification and relief plan documents to help guide airports in this area. 
Q-CR1: How does an airport sponsor claim its allocation available to provide rent relief to airport concessions?
A: An airport sponsor seeking to use ARPA funds to provide relief from rent and minimum annual guarantee (MAG) obligations to eligible airport concessions may apply for that allocation in an application for a Concessions Rent Relief Airport Rescue Grant. FAA personnel will reach out to each airport sponsor to provide an opportunity to submit a grant application. An airport sponsor wishing to decline its concessions rent relief allocation should not submit application(s), but rather notify its local ADO of its intent to decline. 
Q-CR2: How do airport sponsors provide rent relief to airport concessions?
A: If an airport sponsor accepts its ARPA allocations for concession relief, the sponsor must provide relief from rent and MAG to eligible small airport concessions and eligible large airport concessions. ARPA requires an airport sponsor taking a concession relief grant to provide such relief on a proportional basis (see Q-CR-18) to eligible small airport concessions and eligible large airport concessions, respectively, until the sponsor has provided relief equaling the total allocation amount. More information about the concession relief plan and proportional relief is provided in Q-CR16 and Q-CR18, respectively. Only relief associated with rent due for concession occupancy or commercial use after March 11, 2021, which is the date of enactment of ARPA, is eligible for grant payment. 
Q-CR3: What is an 'eligible small airport concession'?
A: An 'eligible small airport concession' is a concession (as defined in 49 CFR § 23.3) that is in-terminal and either a small business with maximum gross receipts, averaged over the previous 3 fiscal years, of less than $56,420,000 or a joint venture (as defined in 49 CFR § 23.3). 
Q-CR4: What is an 'eligible large airport concession'?
A: An 'eligible large airport concession' is a concession (as defined in 49 CFR § 23.3) that is in-terminal and has maximum gross receipts, averaged over the previous 3 fiscal years, of more than $56,420,000. 
Q-CR5: Are on-airport car rental and on-airport parking concessions eligible for rent relief under ARPA?
A: The definitions of eligible small airport concession and eligible large airport concession limit eligibility to in-terminal concessions. ARPA, unlike CRRSA, does not list on-airport car rental and on-airport parking concessions for rent relief eligibility. Accordingly, these types of concessions are not eligible to share in this relief. However, to the extent these concessions fall under the definition of in-terminal concession (through either a physical operation in the terminal building or advertising in the terminal building), an airport sponsor may allocate a portion of the concession's total rent that reflects that in-terminal presence. 
Q-CR6: What is a 'joint venture'?
A: A 'joint venture' is defined in 49 CFR § 23.3 as an association of an airport concession disadvantaged business enterprise (ACDBE) firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills and knowledge, and in which the ACDBE is responsible for a distinct, clearly defined portion of the work of the contract and whose shares in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest. Joint venture entities are not certified as ACDBEs. 
Q-CR7: What constitutes 'rent' for the purpose on relief under a Concessions Rent Relief Airport Rescue Grant?
A: ARPA does not define 'rent'. FAA acknowledges there are a variety of contractual arrangements between airports and airport concessions. For that reason, FAA defines 'rent' broadly to include any payment to the airport in exchange for operating a concession business at the airport. In consideration of unique circumstances, an airport sponsor may narrow that definition for its airport concessions rent relief plan, but the sponsor must apply that narrowed definition to all concessions at the airport, identify the unique circumstances in its relief plan, and consult with concessions stakeholders on the narrowed definition. 
Q-CR9: Can an airport sponsor recover its administrative expenses for providing rent or MAG relief to airport concessions?
A: No. Unlike the Coronavirus Response and Relief Supplemental Appropriation Act, 2021 (CRRSA), administrative expenses are not provided for under ARPA. 
Q-CR17: If an airport sponsor has no concessions that satisfy the definition of either eligible small airport concession or eligible large airport concession, can both allocations be used to provide relief from rent and MAG to all in-terminal airport concessions on a proportional basis?
A: FAA anticipates that, in rare circumstances, an airport may have either no eligible small concessions or no eligible large concessions. The airport would certify to those circumstances on its concessions rent relief plan (see Q-CR16), include that certification as part of its consultation with airport concessions stakeholders, and then allocate both concessions rent relief allocations proportionally among all eligible concessions at the airport. 
Q-CR18: How does an airport sponsor calculate the proportional share for eligible concessions?
A: An airport sponsor first determines its population of eligible concessions for each concessions rent relief allocation. An airport sponsor should choose an appropriate baseline time period to calculate the proportional share. That baseline time period should be relevant to the expected duration of relief to be provided and reflect a normal operating environment. Examples of a baseline time period are calendar year 2019, first quarter of 2020, or February 2020, but the baseline time period should not be after the first quarter of 2020. An airport sponsor should calculate the proportional share based on rent collected during the baseline time period. If an airport sponsor chooses a period shorter than a full year, it may make adjustments based on a percentage of contractual MAG obligation, but those adjustments should be identified in the concessions rent relief plan. An airport sponsor then uses the calculated proportional share to determine the amount of rent relief available for each concession. 
Workforce Retention Requirements. FAA's FAQ on Airport Rescue Grants provides information for airports on the law's workforce retention requirements, when reporting must occur, where to submit reports, waivers available for airports, and consequences for failing to meet the retention requirements, among other information. The process for airports to report their compliance with the retention requirement is very similar to the existing process that airports use to comply with the CARES Act grant program and the ACRGP. However, FAA provided an update on when certification of compliance must occur and when retention reporting must be submitted. 
Q-WF1: Are there specific workforce retention requirements for accepting Airport Rescue Grant funds?
A: Yes. A sponsor of a small, medium, or large hub airport must continue to employ, through September 30, 2021, at least 90% of the number of individuals employed (after making adjustments for retirements or voluntary employee separations) as of March 27, 2020. This requirement is an extension of the workforce retention requirement under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and CRRSA. An airport sponsor must certify compliance with the CARES, CRRSA, and ARPA workforce retention requirements at the time of execution of its Airport Rescue Grant. The workforce retention requirement does not apply to non-hub or non-primary airports. 
Q-WF2: When do small, medium, and large hub airport sponsors report their respective compliance with the employee retention requirement?
A: Provided an airport sponsor is current with its workforce retention reporting under CARES and CRRSA, it must report quarterly employment totals as of June 30 and September 30, 2021. All reports are due to FAA within 15 days of the end of each quarter. 
Prevailing Wage Requirements. As an update to prior guidance, FAA clarified when prevailing wage requirements under the Davis-Bacon Act apply to contract expenses reimbursed with Airport Rescue Grants, as well as with CARES grants and ACRGP funds. AAAE had requested FAA clarify and confirm that the prevailing wage requirements do not apply to routine maintenance or service contracts. 
Q-GA14: Do prevailing wage requirements apply to contract expenses reimbursed with Airport Rescue Grant funds?
A: Yes. Consistent with FAA's implementation of CARES Act Airport Grants and the Airport Coronavirus Response Grant Program, any contract for more than $2,000 involving labor for constructing, repairing, or improving a public-use airport, carried out under a Grant Agreement or Development Addendum, requires contractors to pay labor minimum wage rates as determined by the Secretary of Labor under 40 U.S.C. 3141–3144, 3146, and 3147. Prevailing wage requirements apply, for example, on contracts for replacing windows, repairing equipment, or repairing HVAC. Incidental costs on existing contracts for cleaning services, maintenance, or general upkeep are not subject to prevailing wage requirements. 
Federal Share for AIP Grants. FAA provided details for airport sponsors on how the agency plans to award the 100% federal share for FY 2021 AIP and supplemental discretionary grants, which was provided for under ARPA. 
Q-F2: How will FAA pay a 100% Federal share under ARPA?
A: FAA will award the 100% Federal share in a manner substantially similar to how it awarded 100% Federal share grants under CARES. Under CARES, FAA awarded a 100% Federal share for grants awarded under the FY 2020 appropriations for AIP and Supplemental Discretionary grants. All AIP grants awarded during FY 2021 will be awarded at a 100% Federal share, even if those grants are awarded with funds recovered from prior appropriations. All Supplemental Discretionary grants awarded under FAA's FY 2021 appropriation will be awarded at a 100% Federal share, regardless of when the grant is obligated. In FY 2021, amendments to FY 2020 multi-year AIP grants will be at a 100% Federal share. In FY 2022 and 2023, amendments to FY 2020 multi-year AIP grants will be at a 100% Federal share based on the amendment amounts described in the original multi-year grant agreement. In FY 2022 and 2023, amendments to FY 2021 multi-year AIP grants will be at a 100% Federal share based on the amendment amounts described in the original multi-year grant agreement, if funds remain available. If remaining funds are insufficient to cover all multi-year amendment commitments, FAA will pay the increased Federal share on a proportional basis. FAA will not award an increased Federal share for any Supplemental Discretionary grants awarded under FAA's FY 2019 appropriation or for any FY 2020 AIP grant that was funded with funds recovered from a prior fiscal year because these grants were not eligible for a 100% Federal share under the CARES Act. Airport sponsors do not have to take further action to receive 100% Federal share funds, and an airport sponsor should submit its SF-424, Application for Federal Assistance, with only the amount of the AIP or Supplemental Discretionary grant (i.e., the sponsor's normal Federal share). FAA will add all increased Federal share funds to the AIP or Supplemental Discretionary grant when those grants are obligated or amended. 
 
