Regulatory Alert: FAA Releases Notice of Funding Opportunity for FY23 Airport Terminal Program Grants
September 23, 2022
The Federal Aviation Administration (FAA) released the notice of funding opportunity (NOFO) that outlines how airports can apply for a share of the approximately $1 billion in fiscal year 2023 (FY23) discretionary funds under the 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.
FAA has published the NOFO, the application form, and other ATP details on their BIL website here. Please note that the NOFO and application form are slightly different from the NOFO and application form that were released earlier in the year for FY22 grants. The agency set Monday, October 24, 2022, at 5 p.m. ET, as the deadline for submitting applications. FAA stated that the agency will announce projects selected for funding by March 2023.
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. FAA has already announced over $968 million in FY22 ATP grants that will fund 92 projects at 85 airports. As a reminder, these are the key details of which airports should be aware:
• Distribution by Hub Size: The $1 billion for FY23 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. 
Application Process. Applications for a FY23 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.
Please note that the application form has been updated and is slightly different than the form used for FY22 ATP grants. The new application form for FY23 ATP grants allows for additional space to enable airports to provide more detail about their proposed projects and requests information about the state of the project for which funding is requested (e.g., planning, design or construction). For ATC tower projects, there is a new question that asks for information about how the project addresses impacts on the National Airspace System (NAS).
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 October 24, 2022.
ATP Grant Selection Criteria. In the NOFO, FAA outlines the criteria on how applications for a FY23 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 by July 2023.
• 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 NAS, 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 these criteria, including project eligibility, justification, readiness, and the availability of matching funds.
Projects Advancing 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 proposing a specific project for FAA's consideration.
New Grant Requirements. Airports are encouraged to review the NOFO's “Grant Requirements“ section, which is notably different than the NOFO for FY22. Indeed, FAA included several new requirements that airports would have to comply with if selected for a grant:
• Domestic Preference Requirements: FAA emphasized that the agency “expects all applicants to comply with [new Build America, Buy America Act requirements] without needing a waiver. However, to obtain a waiver, a recipient must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials in constructing their project.“ 
• Critical Infrastructure Security and Resilience: Selected airports “must demonstrate, prior to the signing of the grant agreement, effort to consider and address physical and cyber security risks relevant to the transportation mode and type and scale of the project.“ Projects that have not considered and addressed physical and cyber security and resilience will be required to do so before the airport will receive funding. 
• Performance and Program Evaluation: Selected airports “may be required to participate in an evaluation undertaken by DOT, FAA, or another agency or partner. The evaluation may take different forms, such as an implementation assessment across grant recipients, an impact and/or outcomes analysis of all or selected sites within or across grant recipients, or a benefit/cost analysis or assessment of return on investment.“ As part of this program, airports may be required to provide data and other records from the project to assist in the evaluation. 
• Civil Rights and Title VI: FAA also noted that airports would be required to comply with Title VI of the Civil Rights Act of 1964 and other related statutes and requirements. This includes the new requirements and guidance that FAA will begin implementing in FY23. Please see our September 16 Regulatory Alert for additional information. 
Any airport awarded an ATP grant will also 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? Applications for FY23 ATP discretionary funding must be submitted electronically no later than 5 p.m. ET on October 24, 2022. FAA has indicated that they intend to announce FY23 ATP grant awards, or a notice of intent to fund projects, by March 2023. In addition, FAA will publish an annual NOFO to announce additional funding available, approximately $1 billion per year, for FY24 through FY26 as those fiscal years come closer.
FAA has published the NOFO, the application form, and other ATP details on their BIL website here. Please note that the NOFO and application form are slightly different from the NOFO and application form that were released earlier in the year for FY22 grants. The agency set Monday, October 24, 2022, at 5 p.m. ET, as the deadline for submitting applications. FAA stated that the agency will announce projects selected for funding by March 2023.
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. FAA has already announced over $968 million in FY22 ATP grants that will fund 92 projects at 85 airports. As a reminder, these are the key details of which airports should be aware:
• Distribution by Hub Size: The $1 billion for FY23 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. 
Application Process. Applications for a FY23 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.
Please note that the application form has been updated and is slightly different than the form used for FY22 ATP grants. The new application form for FY23 ATP grants allows for additional space to enable airports to provide more detail about their proposed projects and requests information about the state of the project for which funding is requested (e.g., planning, design or construction). For ATC tower projects, there is a new question that asks for information about how the project addresses impacts on the National Airspace System (NAS).
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 October 24, 2022.
ATP Grant Selection Criteria. In the NOFO, FAA outlines the criteria on how applications for a FY23 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 by July 2023.
• 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 NAS, 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 these criteria, including project eligibility, justification, readiness, and the availability of matching funds.
Projects Advancing 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 proposing a specific project for FAA's consideration.
New Grant Requirements. Airports are encouraged to review the NOFO's “Grant Requirements“ section, which is notably different than the NOFO for FY22. Indeed, FAA included several new requirements that airports would have to comply with if selected for a grant:
• Domestic Preference Requirements: FAA emphasized that the agency “expects all applicants to comply with [new Build America, Buy America Act requirements] without needing a waiver. However, to obtain a waiver, a recipient must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials in constructing their project.“ 
• Critical Infrastructure Security and Resilience: Selected airports “must demonstrate, prior to the signing of the grant agreement, effort to consider and address physical and cyber security risks relevant to the transportation mode and type and scale of the project.“ Projects that have not considered and addressed physical and cyber security and resilience will be required to do so before the airport will receive funding. 
• Performance and Program Evaluation: Selected airports “may be required to participate in an evaluation undertaken by DOT, FAA, or another agency or partner. The evaluation may take different forms, such as an implementation assessment across grant recipients, an impact and/or outcomes analysis of all or selected sites within or across grant recipients, or a benefit/cost analysis or assessment of return on investment.“ As part of this program, airports may be required to provide data and other records from the project to assist in the evaluation. 
• Civil Rights and Title VI: FAA also noted that airports would be required to comply with Title VI of the Civil Rights Act of 1964 and other related statutes and requirements. This includes the new requirements and guidance that FAA will begin implementing in FY23. Please see our September 16 Regulatory Alert for additional information. 
Any airport awarded an ATP grant will also 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? Applications for FY23 ATP discretionary funding must be submitted electronically no later than 5 p.m. ET on October 24, 2022. FAA has indicated that they intend to announce FY23 ATP grant awards, or a notice of intent to fund projects, by March 2023. In addition, FAA will publish an annual NOFO to announce additional funding available, approximately $1 billion per year, for FY24 through FY26 as those fiscal years come closer.
