The spread of the coronavirus has had a severe financial impact on airports, airlines and the entire aviation industry Passenger levels began dropping precipitously in March, and airport revenue took a similar nosedive With a significant drop in revenue, airports faced tough questions about how they would be able to cover their personnel costs, ongoing operating expenses, and $7 billion in debt payments due in 2020 AAAE, ACI NA and airports around the country quickly mobilized and urged Congress to help airports deal with the global pandemic Airports repeatedly weighed in with their elected officials and highlighted how the global pandemic was impacting their facilities Meanwhile, AAAE and ACI NA urged Congress to include much need airport assistance in a coronavirus relief package that lawmakers began drafting in March As part of that effort, AAAE President and CEO Todd Hauptli and ACI NA President and CEO Kevin Burke on March 18 sent aletterto Senate and House leaders calling on Congress to provide $10 billion to help airports deal with the current crisis The two associations called for a rapid infusion of grants to help airports weather the immediate storm Later that month, Congress and the administration reached an agreement on a $2 trillion coronavirus relief package that included $10 billion to help airports impacted by the global pandemic The unprecedented funding in the CARES Act (H R 748) provided a critical assistance to airports and allowed them to pay for operating expenses, debt service payments and new COVID 19 related expenses Although passenger levels began ticking up in April, it became increasing clear that the road to recovery would take a significant amount of time and additional resources On May 6, Hauptlitestifiedbefore the Senate Committee on Commerce, Science and Transportation during a hearing on how COVID 19 is impacting the aviation system During the session, Hauptliurgedkey lawmakers to continue helping commercial service and general aviation airports severely impacted by the coronavirus Given the significant decline in aviation activity and revenue, and the precipitous drop in PFC collections that help support bond payments, airports will need additional federal assistance at least as large as the initial amount provided in the CARES Act, Hauptli said He also called on Congress to provide greater financial support to concessionaires and other airport partners that have been significantly impacted by the pandemic As talks on another coronavirus relief package began heating up in July, Hauptli and BurkeurgedCongressional leaders to provide another round of assistance to airports The two urged lawmakers to provide airports with an additional $15 billion $13 billion for commercial service airports, $1 5 billion for general aviation airports, and $500 million to cover the local match for Airport Improvement Projects funded in FY21 CARES Act funding has provided a critical lifeline to airports in the near term that will protect jobs, enhance cleaning and sanitization efforts, ensure that debt payments can be made and help keep construction projects moving forward, Hauptli and Burke wrote Unfortunately, the relief provided by CARES Act funding is only temporary given the depths of the crisis SUMMARY The following is a summary of the some of the key airport and airline related provisions in H R 748, Coronavirus Aid, Relief, and Economic Security Act AIRPORT FUNDING $10 Billion in Overall Funding The final bill includes $10 billion to prevent, prepare for, and respond to the coronavirus to remain available until expended Airports would not be required to pay a local match for federal grants like they do for traditional Airport Improvement Program grants Funds would come the general fund rather than the Airport and Airway Trust Fund $7 4 Billion for Any Lawful Purpose Of the $10 billion, $7 4 billion would go toward airports for any purpose for which airport revenues may be lawfully used at a 100 percent federal share Of that amount, funds would be distributed in the following ways Grants Based on Enplanements The bill would require the FAA to distribute 50 percent of the funds, or $3 7 billion, to airports based on their calendar year 2018 enplanements as a percentage of total 2018 enplanements for all commercial service airports Grants Based on Debt Service The remaining 50 percent of the $7 4 billion would be dedicated toward helping airports with their debt service payments The FAA would be required to distribute funds in this category based on an equal combination of each sponsor's fiscal year 2018 debt service as a percentage of the combined debt service for all commercial service airports and each sponsor's ratio of unrestricted reserves to their respective debt service $2 Billion for Apportionments The bill includes another $2 billion that airports could use for any lawful purpose without paying a local match Funds would be distributed based on a modified apportionment formula in a way that would help large and small airports It wouldeliminate PFC turnbacks for large and medium hub airports and remove the maximum apportionment cap It would preserve doubled entitlements and retain the $1 million minimum entitlement for smaller primary airports, which are in place when Congress appropriates $3 2 billion or more for AIP in a fiscal year The bill would also preserve the $600,000 apportionments for airports that have between 8,000 and 10,000 enplanements Any remaining funds after the apportionment run would be distributed like the $7 4 billion category above $500 Million for 100 Percent Federal Share of FY20 AIP Grants The bill calls for not less than $500 million to pay a 100 percent federal share for AIP funding that Congress already approved as part of the Fiscal Year 2020 appropriations process $100 Million for General Aviation Airports $100 million would be reserved for general aviation airports GA airports could use the funds for any purpose for which airport revenues may lawfully be used The bill requires DOT to apportion the funds directly to each eligible airport based on categories published in the most current National Plan of Integrated Airport Systems The bill would also eliminate the local match requirement for GA airports Workforce Retention The final bill includes a House proposal that would require airports receiving federal funds to continue to employ at least 90 percent of the number of individuals employed by the airport from when the bill is enacted into law through December 31, 2020 However, the requirement would not apply to non hub or non primary airports The bill would also allow DOT to waive that workforce retention requirement if the agency determines the airport is experiencing economic hardship or if the requirement would undermine aviation safety and security It is our understanding that this requirement applies only to direct employees of the airport, not tenants Airport Concessions The final bill does not include a House proposal that would have required airports use a portion of federal funds to provide financial relief to airport concessionaires experiencing economic hardship Administrative Expenses The plan would allow the FAA to retain up to 0 1 percent of overall airport funding or $10 million to administer the airport grants SMALL COMMUNITY PROGRAMS Essential Air Service The bill would provide an additional $56 million for the Essential Air Service Program SECURITY PROVISIONS REAL ID The bill would extend the REAL ID requirement until not earlier than September 30, 2021 a year later than the current enforcement deadline However, the administration isn't waiting for the bill to be enacted into law Acting DHS Secretary Chad Wolfannouncedon March 26 that the agency extended the REAL ID enforcement by a year Transportation Security Administration The bill includes $100 million for TSA to spend, in part, on cleaning and sanitation at checkpoints and airport common areas The agency would also be allowed to use funds for overtime and explosive detection materials STATUS The President signed the H R 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27 TESTIMONY AAAE President and CEO Todd Hauptli on May 6testifiedbefore the Senate Committee on Commerce, Science and Transportation during a hearing on how the COVID 19 pandemic is impacting the aviation system During the hearing, Hauptliurgedkey lawmakers to continue helping commercial service and general aviation airports severely impacted by the coronavirus LETTERS Hauptli and ACI NA President and CEO Kevin Burke on July 9urgedCongressional leaders in both chambers to provide another round of assistance to help airports that have experienced significant drops in passengers and revenue as a result of the global pandemic The President signed the CARES Act into law on March 27 On the same day, AAAE President and CEO Todd Hauptli on March 27wroteFAA Administrator Steve Dickson urging the agency to distribute the emergency coronavirus funding to airports as quickly as possible and with as few strings attached as possible On March 20, Senator Jeanne Shaheen (D NH) and bipartisan group of 39 other Senators sent aletterto the President urging him to help airports dealing with the COVID 19 outbreak Hauptli and Burke on March 18 sent a letter to Senate and House leaders calling on Congress to quickly provide airports with an influx of $10 billion to help airports deal with the current crisis RELATED INFORMATION The FAA hasinformationon CARES Act grants for airports on its website The FAA on May 29 updated itsFrequently Asked Questionsdocument on CARES Act grants for airports The FAA on April 14 released apresentationon CARES Act grants for airports On the same date, the agency released two spreadsheets one showinghow muchindividual airports can expect to receive from the CARES Act and another showing how much eachstateis slated to receive The Airport Improvement Program provides federal grants to commercial service and general aviation airports across the country for projects to enhance airport safety, capacity, security, and to address environmental concerns The program has a proven, decades long record of success in financing airport infrastructure and ensuring the safe and efficient operation of the nation's airport system AIP is a critical source of funding for airports of all sizes including smaller airports around the country that don't generate sufficient revenue from Passenger Facility Charges or have easy access to the bond market Large and medium hub airports also depend on AIP funding particularly money distributed through discretionary grants and the Letter of Intent Program to help pay for large capacity enhancing projects AIP funds key airport projects that improve safety, security, capacity, and efficiency For instance, airports often rely on federal grants to construct and rehabilitate runways, taxiways, and aprons According to the Federal Aviation Administration, airports use more than 60 percent of AIP funds for those three categories of airside projects The federal AIP program is supported entirely by users of the aviation system through various aviation excise taxes that are deposited into the Airport and Airway Trust Fund The program does not receive any revenue from the general fund Airport sponsors are usually required to pay a local match including 25 percent for large and medium hubs and up to10 percent for smaller airports Increasing Capital Needs With increasing passenger levels and aging facilities, large and small airports face significant capital needs As part of its 2019 National Plan of Integrated Airports System report, the FAA estimated that airports have $35 1 billion in AIP eligible projects between 2019 and 2023 or more than $7 billion annually That amount is a 7 percent increase from the FAA's previous estimate Aside from temporary increases in Fiscal Years 2018, 2019 and 2020, Congress has authorized and appropriated $3 35 billion annually for AIP in recent years Of that amount, less than $3 2 billion is designated for actual capital projects That amount is only enough to cover only half of airport's annual AIP eligible projects The FAA's NPIAS provides a snapshot of certain airport capital needs But the FAA estimate only reflects some projects that are eligible for federal funds It does not include other necessary but ineligible infrastructure such as certain terminal projects that airports fund with PFCs and other revenue sources That overall annual number is substantially higher STATUS House Clears Infrastructure Plan House Democrats on June 22 unveiled a $1 5 trillion infrastructure package that would increase the AIP authorization level to $4 billion annually through FY25 and provide up to $4 billion annually in supplemental airport funding during the same five year timeframe The House on July 1 passed the bill by a mostly party line vote of 233 to 188 FY21 Appropriations The administration on February 10 released its budget request for FY21 The plan proposed $3 35 billion for AIP in FY21 the same as the current funding level It also targeted AIP discretionary grants for elimination Congress has provided airports with $1 8 billion in supplemental discretionary grants in recent years $1 billion in FY18, $500 million in FY19, and $400 million in FY20 The House Transportation Appropriations Subcommittee on July 8 approved its version of the FY21 DOT spending bill The measure includes almost $6 4 billion for airport infrastructure including $3 35 billion for traditional AIP and $500 million for supplemental discretionary grants The bill also contains $2 5 billion for airport infrastructure investments as part of a $26 billion plus up to DOT to support the economic recovery from the coronavirus pandemic and strengthen and make more resilient our nation's aging infrastructure FY20 Appropriations In December 2019, lawmakers passed two packages of must pass appropriations bills including one (H R 1865) that contained funding for the Department of Transportation, the Federal Aviation Administration and other federal agencies Traditional AIP Funding The final FY20 spending package included $3 35 billion in traditional AIP account Of that amount, $116 5 million would go toward administration expenses, $15 million for the Airport Cooperative Research Program, and $10 million for the Small Community Air Service Development Program Another $39 2 million would go toward Airport Technology Research Supplemental AIP Funding The final bill includes another $400 million for supplemental discretionary grants that would be available to airports of all sizes The latest annual funding bill brings the total supplemental discretionary funding for airports to just under $2 billion over the past three fiscal years Priority Consideration The FAA reauthorization bill, which Congress passed in 2018, requires the FAA to use not less than 50 percent of supplemental AIP funds for projects at small hub, non hub and nonprimary airports The joint explanatory statement accompanying the final FY20 spending bill directs the FAA to restrict this set aside to 50 percent, and use the remaining funds for grants at medium hub and large hub airports The statement accompanying the final FY20 spending bill also directs the FAA to provide priority consideration for grant applications that complete previously awarded discretionary grant projects, and to provide priority consideration based on project justification and completeness of pre grant actions FY19 Appropriations In February 2019 Congress passed H J Res 31, a package of FY19 spending bills that contained funding for DOT and numerous other federal agencies The measure included $3 35 billion in regular AIP funding and another $500 million for supplemental discretionary grants Unlike the FY18 DOT FAA spending bill, the FY19 measure did not include language requiring DOT to give priority consideration to certain nonprimary, nonhub and small airport projects FY18 Appropriations The FY18 omnibus spending bill included $3 35 billion in traditional AIP funding and an additional $1 billion in supplemental funding for airport infrastructure projects, which the FAA has distributed through AIP discretionary grants (That extra $1 billion for airports was made available after Congress approved a two year budget deal in early 2018 That agreement expires on October 1, 2019 ) For the $1 billion in supplemental discretionary funding provided in FY18, DOT was required by Congress to give priority consideration to projects at (a) nonprimary airports that are classified as Regional, Local, or Basic airports and are not located within a Metropolitan or Micropolitan Statistical Area as defined by the Office of Management and Budget, or (b) primary airports that are classified as Small or Nonhub airports The federal share for projects at nonprimary airports is 100 percent FAA Reauthorization Bill In late 2018, Congress approved H R 302, the FAA Reauthorization Act of 2018 The bill authorized $3 35 billion annually for AIP through FY23 That flat funding is particularly disappointing since airports have enormous infrastructure needs, and the legislation failed to raise the federal cap on local PFCs The FAA bill also authorized but did not guarantee more than $1 billion annually for construction projects at airports smaller than large hubs That proposed revenue would need to come from general fund instead of the Airport and Airway Trust Fund and compete with other transportation programs as part of the annual appropriations process The final FAA bill also included some programmatic changes For instance, it included two Senate provisions regarding the minimum entitlement One would allow certain airports to continue to receive the minimum entitlement even if their enplanements dip below 10,000 The other would allow commercial service airports with more than 8,000 enplanements to receive $600,000 in AIP entitlements AAAE VIEWS AAAE strongly supports AIP and continue to urge Congress to increase funding for the regular program and to provide additional funding for discretionary grants to be available to airports of all sizes RELATED INFORMATION AAAE President and CEO Todd Hauptli on June 12, 2020 sent letters to leaders on the House and Senate Appropriations Committee that outline our requests for the FY21 DOT FAA funding bill The letter renews the annual requests that AAAE made for the annual funding bill before the coronavirus hit and includes new asks to help airports recover from the pandemic The House Transportation and Infrastructure Committee on February 26, 2020 approved a bill (H R 5912) that would allow airports to provide incentive payments to contractors for early completion of AIP funded projects AAAE's full list of priorities for the FY21 DOT FAA funding bill, including $3 35 billion for the regular AIP program and another additional $1 billion in supplemental discretionary funds, may be viewedhere FAA's AIP Fact Sheet may be viewedhere 1) What is a current legislative issue for this particular segment of the hospitality industry 2) What action is the professional association supporting regarding this issue Is there a bill or new law being proposed Is the professional association asking for funding for a segment of the industry

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The spread of the coronavirus has had a severe financial impact on airports, airlines and the entire aviation industry.Passenger levels began dropping precipitously in March,

The spread of the coronavirus has had a severe financial impact on airports, airlines and the entire aviation industry.Passenger levels began dropping precipitously in March, and airport revenue took a similar nosedive.With a significant drop in revenue, airports faced tough questions about how they would be able to cover their personnel costs, ongoing operating expenses, and $7 billion in debt payments due in 2020.

AAAE, ACI-NA and airports around the country quickly mobilized and urged Congress to help airports deal with the global pandemic.Airports repeatedly weighed in with their elected officials and highlighted how the global pandemic was impacting their facilities.Meanwhile, AAAE and ACI-NA urged Congress to include much-need airport assistance in a coronavirus relief package that lawmakers began drafting in March.

As part of that effort, AAAE President and CEO Todd Hauptli and ACI-NA President and CEO Kevin Burke on March 18 sent aletterto Senate and House leaders calling on Congress to provide $10 billion to help airports deal with the current crisis.The two associations called for a rapid infusion of grants to help airports weather the immediate storm.

Later that month, Congress and the administration reached an agreement on a $2 trillion coronavirus relief package that included $10 billion to help airports impacted by the global pandemic.The unprecedented funding in the CARES Act (H.R 748) provided a critical assistance to airports and allowed them to pay for operating expenses, debt service payments and new COVID-19-related expenses.

Although passenger levels began ticking up in April, it became increasing clear that the road to recovery would take a significant amount of time and additional resources.On May 6, Hauptlitestifiedbefore the Senate Committee on Commerce, Science and Transportation during a hearing on how COVID-19 is impacting the aviation system.During the session, Hauptliurgedkey lawmakers to continue helping commercial service and general aviation airports severely impacted by the coronavirus.

"Given the significant decline in aviation activity and revenue, and the precipitous drop in PFC collections that help support bond payments, airports will need additional federal assistance at least as large as the initial amount provided in the CARES Act," Hauptli said.He also called on Congress to provide greater financial support to concessionaires and other airport partners that have been significantly impacted by the pandemic.

As talks on another coronavirus relief package began heating up in July, Hauptli and BurkeurgedCongressional leaders to provide another round of assistance to airports.The two urged lawmakers to provide airports with an additional $15 billion:$13 billion for commercial service airports, $1.5 billion for general aviation airports, and $500 million to cover the local match for Airport Improvement Projects funded in FY21.

"CARES Act funding has provided a critical lifeline to airports in the near-term that will protect jobs, enhance cleaning and sanitization efforts, ensure that debt payments can be made and help keep construction projects moving forward, Hauptli and Burke wrote."Unfortunately, the relief provided by CARES Act funding is only temporary given the depths of the crisis."

SUMMARY

The following is a summary of the some of the key airport- and airline-related provisions in H.R. 748, Coronavirus Aid, Relief, and Economic Security Act:

AIRPORT FUNDING

$10 Billion in Overall Funding:The final bill includes $10 billion "to prevent, prepare for, and respond to the coronavirus to remain available until expended." Airports would not be required to pay a local match for federal grants like they do for traditional Airport Improvement Program grants. Funds would come the general fund rather than the Airport and Airway Trust Fund.

$7.4 Billion for Any Lawful Purpose:Of the $10 billion, $7.4 billion would go toward airports for "any purpose for which airport revenues may be lawfully used" at a 100 percent federal share. Of that amount, funds would be distributed in the following ways:

Grants Based on Enplanements:The bill would require the FAA to distribute 50 percent of the funds, or $3.7 billion, to airports based on their "calendar year 2018 enplanements as a percentage of total 2018 enplanements for all commercial service airports."

Grants Based on Debt Service:The remaining 50 percent of the $7.4 billion would be dedicated toward helping airports with their debt service payments. The FAA would be required to distribute funds in this category based on "an equal combination of each sponsor's fiscal year 2018 debt service as a percentage of the combined debt service for all commercial service airports and each sponsor's ratio of unrestricted reserves to their respective debt service."

$2 Billion for Apportionments:The bill includes another $2 billion that airports could use for any lawful purpose without paying a local match. Funds would be distributed based on a modified apportionment formula in a way that would help large and small airports.It wouldeliminate PFC "turnbacks" for large and medium hub airports and remove the maximum apportionment cap.

It would preserve doubled entitlements and retain the $1 million minimum entitlement for smaller primary airports, which are in place when Congress appropriates $3.2 billion or more for AIP in a fiscal year. The bill would also preserve the $600,000 apportionments for airports that have between 8,000 and 10,000 enplanements. Any remaining funds after the apportionment run would be distributed like the $7.4 billion category above.

$500 Million for 100 Percent Federal Share of FY20 AIP Grants:The bill calls for not less than $500 million to pay a 100 percent federal share for AIP funding that Congress already approved as part of the Fiscal Year 2020 appropriations process.

$100 Million for General Aviation Airports:$100 million would be reserved for general aviation airports.GA airports could use the funds "for any purpose for which airport revenues may lawfully be used."The bill requires DOT to apportion the funds "directly to each eligible airport" based on categories published in the most current National Plan of Integrated Airport Systems.The bill would also eliminate the local match requirement for GA airports.

Workforce Retention:The final bill includes a House proposal that would require airports receiving federal funds to continue to employ "at least 90 percent of the number of individuals employed by the airport" from when the bill is enacted into law through December 31, 2020.

However, the requirement would not apply to non-hub or non-primary airports. The bill would also allow DOT to waive that workforce retention requirement if the agency determines the airport is experiencing "economic hardship" or if the requirement would undermine aviation safety and security. It is our understanding that this requirement applies only to direct employees of the airport, not tenants.

Airport Concessions:The final bill does not include a House proposal that would have required airports use a portion of federal funds "to provide financial relief to airport concessionaires experiencing economic hardship...."

Administrative Expenses:The plan would allow the FAA to retain up to 0.1 percent of overall airport funding - or $10 million - to administer the airport grants.

SMALL COMMUNITY PROGRAMS

Essential Air Service:The bill would provide an additional $56 million for the Essential Air Service Program.

SECURITY PROVISIONS

REAL ID:The bill would extend the REAL ID requirement until not earlier than September 30, 2021 - a year later than the current enforcement deadline.However, the administration isn't waiting for the bill to be enacted into law. Acting DHS Secretary Chad Wolfannouncedon March 26 that the agency extended the REAL ID enforcement by a year.

Transportation Security Administration:The bill includes $100 million for TSA to spend, in part, on "cleaning and sanitation at checkpoints and airport common areas...." The agency would also be allowed to use funds for overtime and explosive detection materials.

STATUS

The President signed the H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27.

TESTIMONY

AAAE President and CEO Todd Hauptli on May 6testifiedbefore the Senate Committee on Commerce, Science and Transportation during a hearing on how the COVID-19 pandemic is impacting the aviation system.During the hearing, Hauptliurgedkey lawmakers to continue helping commercial service and general aviation airports severely impacted by the coronavirus.

LETTERS

Hauptli and ACI-NA President and CEO Kevin Burke on July 9urgedCongressional leaders in both chambers to provide another round of assistance to help airports that have experienced significant drops in passengers and revenue as a result of the global pandemic.

The President signed the CARES Act into law on March 27.On the same day, AAAE President and CEO Todd Hauptli on March 27wroteFAA Administrator Steve Dickson urging the agency to distribute the emergency coronavirus funding to airports as quickly as possible and with as few strings attached as possible.

On March 20, Senator Jeanne Shaheen (D-NH) and bipartisan group of 39 other Senators sent aletterto the President urging him to help airports dealing with the COVID-19 outbreak.

Hauptli and Burke on March 18 sent a letter to Senate and House leaders calling on Congress to quickly provide airports with an influx of $10 billion to help airports deal with the current crisis.

RELATED INFORMATION

The FAA hasinformationon CARES Act grants for airports on its website.
The FAA on May 29 updated itsFrequently Asked Questionsdocument on CARES Act grants for airports.
The FAA on April 14 released apresentationon CARES Act grants for airports.
On the same date, the agency released two spreadsheets - one showinghow muchindividual airports can expect to receive from the CARES Act and another showing how much eachstateis slated to receive.

The Airport Improvement Program provides federal grants to commercial service and general aviation airports across the country for projects to enhance airport safety, capacity, security, and to address environmental concerns.The program has a proven, decades-long record of success in financing airport infrastructure and ensuring the safe and efficient operation of the nation's airport system.

AIP is a critical source of funding for airports of all sizes including smaller airports around the country that don't generate sufficient revenue from Passenger Facility Charges or have easy access to the bond market. Large and medium hub airports also depend on AIP funding - particularly money distributed through discretionary grants and the Letter of Intent Program - to help pay for large capacity-enhancing projects.

AIP funds key airport projects that improve safety, security, capacity, and efficiency. For instance, airports often rely on federal grants to construct and rehabilitate runways, taxiways, and aprons. According to the Federal Aviation Administration, airports use more than 60 percent of AIP funds for those three categories of airside projects.

The federal AIP program is supported entirely by users of the aviation system through various aviation excise taxes that are deposited into the Airport and Airway Trust Fund. The program does not receive any revenue from the general fund.Airport sponsors are usually required to pay a local match including 25 percent for large and medium hubs and up to10 percent for smaller airports.

Increasing Capital Needs:With increasing passenger levels and aging facilities, large and small airports face significant capital needs. ; As part of its 2019 National Plan of Integrated Airports System report, the FAA estimated that airports have $35.1 billion in AIP-eligible projects between 2019 and 2023 or more than $7 billion annually. That amount is a 7 percent increase from the FAA's previous estimate.

Aside from temporary increases in Fiscal Years 2018, 2019 and 2020, Congress has authorized and appropriated $3.35 billion annually for AIP in recent years. Of that amount, less than $3.2 billion is designated for actual capital projects. That amount is only enough to cover only half of airport's annual AIP-eligible projects.

The FAA's NPIAS provides a snapshot of certain airport capital needs. But the FAA estimate only reflects some projects that are eligible for federal funds. It does not include other necessary but ineligible infrastructure such as certain terminal projects that airports fund with PFCs and other revenue sources. That overall annual number is substantially higher.

STATUS

House Clears Infrastructure Plan:House Democrats on June 22 unveiled a $1.5 trillion infrastructure package that would increase the AIP authorization level to $4 billion annually through FY25 and provide up to $4 billion annually in supplemental airport funding during the same five-year timeframe.The House on July 1 passed the bill by a mostly party-line vote of 233 to 188.

FY21 Appropriations:The administration on February 10 released its budget request for FY21.The plan proposed $3.35 billion for AIP in FY21 - the same as the current funding level.It also targeted AIP discretionary grants for elimination.Congress has provided airports with $1.8 billion in supplemental discretionary grants in recent years -- $1 billion in FY18, $500 million in FY19, and $400 million in FY20.

The House Transportation Appropriations Subcommittee on July 8 approved its version of the FY21 DOT spending bill.The measure includes almost $6.4 billion for airport infrastructure including:$3.35 billion for traditional AIP and $500 million for supplemental discretionary grants.The bill also contains $2.5 billion for airport infrastructure investments as part of a $26 billion plus-up to DOT to "support the economic recovery from the coronavirus pandemic and strengthen and make more resilient our nation's aging infrastructure."

FY20 Appropriations:In December 2019, lawmakers passed two packages of must-pass appropriations bills including one (H.R. 1865) that contained funding for the Department of Transportation, the Federal Aviation Administration and other federal agencies.

Traditional AIP Funding:The final FY20 spending package included $3.35 billion in "traditional" AIP account.Of that amount, $116.5 million would go toward administration expenses, $15 million for the Airport Cooperative Research Program, and $10 million for the Small Community Air Service Development Program.Another $39.2 million would go toward Airport Technology Research.
Supplemental AIP Funding: The final bill includes another $400 million for supplemental discretionary grants that would be available to airports of all sizes.The latest annual funding bill brings the total supplemental discretionary funding for airports to just under $2 billion over the past three fiscal years.
Priority Consideration:The FAA reauthorization bill, which Congress passed in 2018, requires the FAA to use not less than 50 percent of supplemental AIP funds for projects at small hub, non hub and nonprimary airports. The joint explanatory statement accompanying the final FY20 spending bill "directs the FAA to restrict this set-aside to 50 percent, and use the remaining funds for grants at medium hub and large hub airports."

The statement accompanying the final FY20 spending bill also "directs the FAA to provide priority consideration for grant applications that complete previously awarded discretionary grant projects, and to provide priority consideration based on project justification and completeness of pre-grant actions."

FY19 Appropriations:In February 2019 Congress passed H.J. Res. 31, a package of FY19 spending bills that contained funding for DOT and numerous other federal agencies.The measure included $3.35 billion in regular AIP funding and another $500 million for supplemental discretionary grants.Unlike the FY18 DOT/FAA spending bill, the FY19 measure did not include language requiring DOT to give "priority consideration" to certain nonprimary, nonhub and small airport projects.

FY18 Appropriations:The FY18 omnibus spending bill included $3.35 billion in traditional AIP funding and an additional $1 billion in supplemental funding for airport infrastructure projects, which the FAA has distributed through AIP discretionary grants.(That extra $1 billion for airports was made available after Congress approved a two-year budget deal in early 2018.That agreement expires on October 1, 2019.)

For the $1 billion in supplemental discretionary funding provided in FY18, DOT was required by Congress to give priority consideration to projects at "(a) nonprimary airports that are classified as Regional, Local, or Basic airports and are not located within a Metropolitan or Micropolitan Statistical Area as defined by the Office of Management and Budget, or (b) primary airports that are classified as Small or Nonhub airports."The federal share for projects at nonprimary airports is 100 percent.

FAA Reauthorization Bill:In late 2018, Congress approved H.R. 302, the FAA Reauthorization Act of 2018.The bill authorized $3.35 billion annually for AIP through FY23.That flat funding is particularly disappointing since airports have enormous infrastructure needs, and the legislation failed to raise the federal cap on local PFCs.

The FAA bill also authorized -- but did not guarantee -- more than $1 billion annually for construction projects at airports smaller than large hubs. That proposed revenue would need to come from general fund instead of the Airport and Airway Trust Fund and compete with other transportation programs as part of the annual appropriations process.

The final FAA bill also included some programmatic changes.For instance, it included two Senate provisions regarding the minimum entitlement. One would allow certain airports to continue to receive the minimum entitlement even if their enplanements dip below 10,000. The other would allow commercial service airports with more than 8,000 enplanements to receive $600,000 in AIP entitlements.

AAAE VIEWS

AAAE strongly supports AIP and continue to urge Congress to increase funding for the regular program and to provide additional funding for discretionary grants to be available to airports of all sizes.

RELATED INFORMATION

AAAE President and CEO Todd Hauptli on June 12, 2020 sent letters to leaders on the House and Senate Appropriations Committee that outline our requests for the FY21 DOT/FAA funding bill.The letter renews the annual requests that AAAE made for the annual funding bill before the coronavirus hit and includes new asks to help airports recover from the pandemic.
The House Transportation and Infrastructure Committee on February 26, 2020 approved a bill (H.R. 5912) that would allow airports to provide incentive payments to contractors for early completion of AIP-funded projects.
AAAE's full list of priorities for the FY21 DOT/FAA funding bill, including $3.35 billion for the regular AIP program and another additional $1 billion in supplemental discretionary funds, may be viewedhere.
FAA's AIP Fact Sheet may be viewedhere.

1) What is a current legislative issue for this particular segment of the hospitality industry?

2) What action is the professional association supporting regarding this issue?Is there a bill or new law being proposed? Is the professional association asking for funding for a segment of the industry?