USCTA Alerts

House Committee Unveils FY27 DOT/FAA Spending Bill; Proposes $4 Billion For AIP

Written by AAAE Staff | May 20, 2026 2:51:38 PM

May 20, 2026

The House Appropriations Committee today unveiled its Fiscal Year 2027 transportation spending bill, and the measure proposes $4 billion for the traditional AIP account and about $271 million in supplemental AIP funding. Of the latter amount, almost $241 million is reserved for earmarks and $17.5 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 $303 million for the FAA Contract Tower Program -- $23.8 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 8:00 a.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, June 4.
 
Below are highlights from the bill text and a summary that the committee released this morning.
 

Funding for FAA Programs
 
FAA: The House proposal includes almost $22.7 billion for the FAA. The Republican press release indicates that that funding will keep our skies safe and help “build a world-class air traffic control system.” It will also allow the agency to “hire 2,300 air traffic controllers and replace dated telecommunication infrastructure.”
 
Operations: The bill includes almost $14.2 billion for FAA operations -- $26.6 million less than the administration requested. Of that amount, almost $9.3 billion is for the Air Traffic Organization and more than $1.5 billion is for the Airspace Modernization Office.
 
Facilities and Equipment: The bill language includes $4 billion for FAA facilities and equipment – the same as current funding level and 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 FY27 – 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 $42.2 million for Airport Technology Research, and $15 million for the Small Community Air Service Development Program.
 
Supplemental AIP Funding/Earmarks: It proposes an additional $270.86 million for supplemental AIP funding. Of that amount, $240.86 million is reserved for earmarks, known as “community project funding,” in the House. A committee summary indicates that the funding will pay for “118 airport improvement projects requested by 101 Members.”
 
Funding to Help Airports Transition to Fluorine-Free Firefighting Foam: Another $17.5 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. The FY26 transportation spending package did not include separate and dedicated funding for the PFAS replacement program.
 
Advanced Air Mobility Pilot Program: The remaining $12.5 million of the supplemental AIP funding is reserved for the advanced air mobility pilot program.
 
Continued EDS Prohibition: The bill continues the longstanding 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 not less than $303 million for the FAA Contract Tower Program – $23.8 million more than the current level. That proposed increase would fund all 266 contract towers currently in the program and allow the FAA to add other airports to the program during the next fiscal year.
 
Contract Tower Transition Pilot Program: The bill includes $6 million to convert high activity contract towers to FAA-staffed facilities – the same amount included in the final F26 DOT spending package. The FY27 bill requires that at least one tower to be located at a small hub airport with more than 1 million passenger enplanements and 40,000 itinerant operations in calendar year 2024 and be located within 100 miles of at least two “military operations areas.”
 
Small Community Air Service Development: As mentioned above, the House bill includes $15 million for the Small Community Air Service Development Program – the same as the current funding level and $15 million more than the administration requested.
 
Essential Air Service: The House bill includes almost $538.3 million in discretionary funding for the Essential Air Service Program – $24.6 million above the current level and $396.3 million more than the administration requested. Coupled with an estimated $173.3 million from overflight fees, the overall funding level for EAS would rise to almost $712 million in FY27.
 

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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