USCTA Alert

May 21, 2026

The House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies this morning approved its version of the Fiscal Year 2027 transportation spending bill on a party-line vote of 9 to 7. The measure includes funding for several airport priorities including $4 billion for AIP, about $271 million for supplemental AIP grants, and almost a $24 million increase for the FAA Contract Tower Program.
 
Big Picture 
 
The House proposal includes $23.3 billion for the FAA, which is more than $2.3 billion above the current level. During today’s session, House Appropriations Committee Chairman Tom Cole (R-OK) said the bill “provides enhanced resources for FAA facilities and equipment to modernize air traffic control, hire needed controllers, and accelerate the deployment of new technologies.”
 
Airport Funding 
 
As we reported in our alert yesterday, the measure proposes $4 billion for the traditional AIP account and almost $271 million for supplemental AIP funding. Of the latter amount, about $241 million is reserved for earmarks, $17.5 million is for the PFAS replacement program, and $12.5 million is for the advanced air mobility pilot program. 
 
Small Community Programs 
 
The House bill includes not less than $303 million for the FAA Contract Tower Program -- $23.8 million more than the current level. If enacted into law, the funding would represent a $130 million increase for contract towers in the past six years. It also includes $15 million for the Small Community Air Service Development Program to help small airports retain and attract commercial air service.
 
Not surprisingly, the bill rejects the administration’s plans to make major cuts to the Essential Air Service program. The bill includes almost $538.3 million in discretionary funding for the EAS – $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 for EAS would climb to almost $712 million in FY27.
 
What’s Next?
 
The full House Appropriations Committee is scheduled to consider the bill on Thursday, June 4. The Senate Appropriations Committee is expected to consider its version of the FY27 DOT/FAA spending bill in mid-June.
 
Additional Info

• House Appropriations Committee Press Release.

   

• Republican Bill Summary.

   

• Democratic Bill Summary.

   

• Bill Text.