Airport Improvement Program

Publication Date: October 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Transportation

Type:

Abstract:

The Airport Improvement Program (AIP) (49 U.S.C. Chapter 471) has provided federal grants for airport development and planning since the passage of the Airport and Airway Improvement Act of 1982 (P.L. 97-248). AIP funding is usually spent on projects that support aircraft operations including runways, taxiways, aprons, noise abatement, land purchase, and safety, emergency or snow removal equipment. Funds obligated for the AIP are drawn from the Airport and Airway Trust Fund, which is supported by user fees and fuel taxes.

The September 11, 2001 terrorist attacks on New York and Washington led to passage of the Aviation and Transportation Security Act (ATSA) (P.L. 107-71). ATSA broadened the range of security activities and projects that are eligible for AIP grants.

AIP’s most recent multi-year authorization was the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR21; P.L. 106-181). Two years in the making, this $40 billion multi-year Federal Aviation Administration (FAA) reauthorization bill greatly increased AIP’s annual obligational authority from less than $2 billion to $3.2 billion for FY2001, $3.3 billion for FY2002, and $3.4 billion for FY2003. The Act increased the Passenger Facility Charge (PFC) ceiling from $3 to $4.50 per boarding passenger. The PFC is essentially a local tax on each boarding passenger that is levied by an airport with federal approval. AIR21 included “point of order” provisions that were designed to assure that all trust fund receipts and interest are spent annually and increased the likelihood that AIP will be fully funded at the authorized level. AIR21 also increased the set aside for noise mitigation from 31% to 34% of AIP discretionary funds.

On July 25, 2003, a conference agreement was reached on an FAA reauthorization bill that would reauthorize AIP for four more years. The Vision 100 — Century of Aviation Reauthorization Act (H.R. 2115; H.Rept. 108-240) would provide AIP with $3.4 billion for FY2004, $3.5 billion for FY2005, $3.6 billion for FY2006, and $3.7 billion for FY2007.

On July 30, 2003, the House Appropriations Committee reported favorably on the FY2004 Transportation, Treasury, and Independent Agencies Act (H.R. 2989; H.Rept. 108-243). The bill recommended AIP funding of $3.425 billion. During floor debate on the bill, however, the entire AIP provision was struck on a point-of-order. Consequently, the House-passed bill (passed on September 9, 2003) contains no funding for AIP.

On September 8, 2003, the Senate Appropriations Committee reported out its FY2004 appropriations bill (S. 1589; S. Rept. 108-146) recommending $3.5 billion for AIP.

AIP’s existing authorization expired on September 31, 2003. A continuing appropriations resolution (H.J.Res. 69; P.L. 108-84) allows the administration of AIP to continue through October 31, 2003, however, no new projects may be funded.