Support Increased Investment in Aviation Infrastructure

Background:

• The current authorization of the Airport Improvement Program (AIP) and other airport facility improvement programs of the Federal Aviation Administration (FAA) expired on September 30, 2007 and has not been reauthorized. The AIP is the primary source of federal grants to airports for airport development and planning. Its funding is derived from the Airports and Airways Trust Fund which is funded through a system of user-fees. Like the Highway Trust Fund, its balance is declining. Congress must also find ways to finance the so-called Next Generation Air Transportation System (NGATS) to modernize air traffic control from a radar- to satellite-based network.

AGC Message:

• Close the Growing Gap between Current Spending and Projected Needs. Current funding for the AIP program is not meeting the identified needs. The gap between current spending and projected needs for AIP-eligible and other airport capital improvement projects ranges from $4.4 to $10.8 billion per year. Current funding for the AIP program is $3.5 billion per year. The cost to build a NGATS is estimated between $69 and $76 billion, which is roughly $5 to $12 billion above current annual FAA facilities and equipment spending levels. Congress should consider appropriate increases to the aviation user fee structure, and the AIP and facilities and equipment accounts, to meet airport capital investment needs while also providing for air traffic control modernization. 
• Increase Passenger Facility Charge (PFC). PFCs are federally-approved local taxes imposed mostly by large-and medium-hub airports to finance airport capital improvement projects ineligible for AIP funds. Congress should consider increasing or eliminating restrictions on airports’ use of PFCs to offset inflation and finance various airport capital improvements.