USCTA Alert

House Committee Unveils FY26 DOT/FAA Spending Bill; Proposes $297 Million for Contract Towers

July 13, 2025

The House Appropriations Committee late this afternoon unveiled its Fiscal Year 2026 transportation spending bill, and the measure proposes $4 billion for the traditional AIP account and slightly more than $313.7 million in supplemental AIP funding. Of the latter amount, $283.7 million is reserved for earmarks and $30 million to help airports convert to fluorine-free firefighting foam. 
 
We have good news to report on the small community front: The House bill includes not less than $279 million for the FAA Contract Tower Program -- $23 million more than the current level. It also includes $15 million for the Small Community Air Service Development Program to help small airports retain and attract commercial air service.
 
The transportation appropriations subcommittee is preparing to mark up the bill tomorrow at 5:00 p.m. Additional details, including a list of airport earmarks, will be included in the yet-to-be-released committee report to accompany the legislation. That document is typically made available when the bill is considered by the full committee, which is slated for Thursday.
 
Below are highlights from the bill text and summary that the committee released late this afternoon.
 
Funding for FAA Programs
 
FAA: The House proposal includes almost $22.3 billion for the FAA, which is more $2.3 billion above the FY25 enacted level. The Committee press release indicates that that funding “will keep our skies safe and help build a world-class air traffic control system.”
 
Operations: It includes almost $13.8 billion for FAA operations. Of that amount, almost $10.4 billion is available to “fully fund air traffic control operations and allow the FAA to hire 2,500 air traffic controllers to replace the retiring workforce.”
 
Facilities and Equipment: The bill language includes $5 billion in additional funding for FAA facilities and equipment – the same amount the administration requested.
 
Research, Engineering, and Development: The House measure includes $230 million for research, engineering, and development – $65 million more than the administration requested.
 
Airport Improvement Program
 
Traditional AIP Funding: The House bill includes $4 billion for the traditional AIP account in FY26 – the same amount authorized in the FAA bill. Of that amount, $160 million is for administration expenses, $15 million for the Airport Cooperative Research Program, almost $41.8 million for Airport Technology Research, and $15 million for the Small Community Air Service Development Program.
 
Supplemental AIP Funding/Earmarks: It proposes an additional $317.738 million for supplemental AIP funding. Of that amount, $283.738 million is reserved for community project funding, which covers “88 projects requested by 80 members.”
 
Funding to Help Airports Transition to Fluorine-Free Firefighting Foam: Another $30 million of the supplemental AIP funding is reserved for the PFAS replacement program. The FAA bill authorized a total of $350 million over five years to help transition to fluorine-free firefighting foam.
 
Continued EDS Prohibition: The bill continues the prohibition against the use of AIP funds for “the replacement of baggage conveyor systems, reconfiguration of terminal baggage areas, or other airport improvements that are necessary to install bulk explosive detection systems.”
 
Small Community Programs
 
Contract Towers: The House bill includes $297 million for the FAA Contract Tower Program – $23 million more than the current level. That proposed increase would fund all 265 contract towers currently in the program and allow the FAA to add other airports to the program during the next fiscal year. If enacted into law, the proposal would represent more than a $100 million increase for the program since FY22.
 
Small Community Air Service Development: As mentioned above, the House bill includes $15 million for the Small Community Air Service Development Program -- $10 million above the current level and $15 million more than the administration requested.
 
Essential Air Service: The House bill includes $514 million in discretionary funding for the Essential Air Service Program -- $206 million more than the administration requested. Coupled with an estimated $173.9 million from overflight fees, the overall funding level for EAS would rise to $687.9 million in FY26.
 
Miscellaneous
 
Cost Free Space: The House bill includes a AAAE-backed proposal that would continue to prohibit the FAA from requiring airports to provide space free of charge in airport-owned buildings.
 
Airport Cooperative Research Program: As mentioned above, the House bill includes $15 million in AIP funding for the Airport Cooperative Research Program.

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