AIP Handbook: Chapter 4
Chapter 4. What AIP funding is available?
4-1. Legislation Needed to Issue AIP Grants (Authorization/Appropriation).
49 USC § 47104(a) allows the Administrator to issue grants for airport planning and development in the United States. In order to be able to issue grants and operate the AIP grant program, the FAA normally needs both an authorization and an appropriation.
a. Authorization. The authorization is often referred to as the FAA Bill or Reauthorization and may be passed by Congress for one or more years. The authorization defines the annual funding level for AIP and gives the FAA contract authority to issue grants. The authorization updates 49 USC § 48103(a) to reflect the amount authorized for airport planning and airport development under 49 USC § 47104, airport noise compatibility planning under 49 USC § 47505(a)(2), and carrying out noise compatibility programs under 49 USC § 47504(c). At the time this Handbook was published, AIP was operating under the Consolidated Appropriations Act, 2018 (Public Law 115-141).
b. Appropriation. The appropriation is an annual budget that Congress establishes for the FAA. The appropriation allows the FAA to incur obligations and make payments for specific purposes. Congress may also use the appropriation to reduce the authorized AIP funding level from the levels set by the authorization for the current year.
4-2. Airport and Airway Trust Fund (Source of AIP).
49 USC § 48103 authorizes revenue for AIP from the Airport and Airway Trust Fund, which is commonly referred to as the Trust Fund. The Airport and Airway Revenue Act of 1970 created the Trust fund to provide a dedicated source of funding for the aviation system. 26 USC § 9502(c) (the Internal Revenue Code of 1986) authorizes funds to be made available from the Trust Fund for AIP.
The revenue sources of the Trust Fund can be found in Appendix V.
4-3. Calendar Year Used for Passenger Boardings, Entitlements, and Cargo Landed Weight.
49 USC § 47102(15) defines the time period for calculating the number of passenger boardings at an airport as in the prior calendar year. For example, the passenger boardings set at the beginning of FY 2014 are the passenger boardings in calendar year 2012. These passenger boardings are used to calculate passenger entitlements.
Although not defined in 49 USC § 47102(10), the time period for calculating the landed cargo weight at an airport is also in the prior calendar year.
4-4. Categories of AIP Funding (Including Calculations and Legislative References).
Once an authorization and an appropriation are in place, the approved AIP funding is split into defined categories and types according to formulas in the Act. A detailed summary of the AIP fund categories, fund types, and associated calculation methods in Table 4-1. Table 4-2 shows the actual percentage of AIP funding by fund type in fiscal year 2017. The calendar year used to determine the passenger boardings, entitlements, and cargo landed weight is discussed in Paragraph 4-3.
| Fund Type and Legislative Reference | How Calculated if less than $3,200,000,000 in AIP is Available in the Fiscal Year | How Calculated if $3,200,000,000 or More in AIP is Available in the Fiscal Year |
|---|---|---|
| Passenger Entitlement | ||
| a. Passenger Entitlement 49 USC § 47114(c)(1) |
Per 49 USC § 47114(c)(1)(A): $7.80 for each of the first 50,000 passenger enplanements. $5.20 for each of the next 50,000. $2.60 for each of the next 400,000. $0.65 for each of the next 500,000. $0.50 for each passenger enplanement > $1 million enplanements. Per 49 USC § 47114(c)(1)(B), the annual minimum is $650,000 and the annual maximum is $22 million per airport. Per 49 USC § 47114(f), the amount of entitlement funds for large and medium hub airports collecting a PFC are reduced based on the PFC collection level approved for the airport. If the airport is collecting at $3.00 or less, the amount of entitlements is reduced by 50%. If the airport is collecting more than $3.00, the amount of entitlements is reduced by 75%. In Hawaii, this calculation is modified based on the percent of inter-island passengers. Special Rule for Fiscal Year 2012 and 2013: Per 49 USC § 47114(c)(1)(F), an airport that was a primary airport in 2007, but in calendar year 2009 and/or 2010, the annual number of passenger boardings was less than 10,000; an amount equal to the amount apportioned for that airport in fiscal year 2009 may be apportioned during fiscal years 2012 and 2013. |
Per 49 USC § 47114(c)(1)(C): $15.60 for each of the first 50,000 passenger enplanements. $10.40 for each of the next 50,000. $5.20 for each of the next 400,000. $1.30 for each of the next 500,000. $1 for each passenger enplanement > 1 million enplanements. Per 49 USC § 47114(c)(1)(C), The annual minimum is $1 million and the annual maximum is $26 million per airport. Per 49 USC § 47114(f), the amount of entitlement funds for large and medium hub airports collecting a PFC are reduced based on the PFC collection level approved for the airport. If the airport is collecting at $3.00 or less, the amount of entitlements is reduced by 50%. If the airport is collecting more than $3.00, the amount of entitlements is reduced by 75%. In Hawaii, this calculation is modified based on the percent of inter-island passengers. Special Rule for Fiscal Year 2012 and 2013: Per 49 USC § 47114(c)(1)(F), an airport that was a primary airport in 2007, but in calendar year 2009 and/or 2010, the annual number of passenger boardings was less than 10,000; an amount equal to the amount apportioned for that airport in fiscal year 2009 may be apportioned during fiscal years 2012 and 2013. |
| Cargo Entitlement | ||
| b. Cargo Entitlement 49 USC § 47114(c)(2) |
3.5% of total AIP available for grants, divided on a pro-rata basis according to an airport’s share of total U.S. landed cargo weight. Per 49 USC § 47114(c)(2)(C), not more than 8% of the total cargo entitlements may be apportioned for any one airport. |
3.5% of total AIP available for grants, divided on a pro-rata basis according to an airport’s share of total U.S. landed cargo weight. |
| Amounts Apportioned for General Aviation Airports Split between Nonprimary Entitlements and State Apportionment. |
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| c. Nonprimary Entitlement 49 USC § 47114(d)(3)(A) 49 USC § 47114(d)(7) |
None. The exception is if, per 49 USC § 47114(d)(7), $650,000 for an airport that meets both of the following criteria: (1) Received scheduled or unscheduled air service from a large certificated air carrier (as defined in 14 CFR part 241 or such other regulations as may be issued by the Secretary under the authority of 49 USC § 41709) in the calendar year used to calculate the apportionment. (2) Had more than 10,000 passenger boardings in the calendar year used to calculate the apportionment. |
Per 49 USC § 47114(d)(3)(A), the lesser of $150,000 or 1/5 of an airport’s 5-year development cost listed in the biennial NPIAS report to Congress. The exception is if, per 49 USC § 47114(d)(7), $1,000,000 for an airport that meets both of the following criteria: (1) Received scheduled or unscheduled air service from a large certificated air carrier (as defined in 14 CFR part 241 or such other regulations as may be issued by the Secretary under the authority of 49 USC § 41709) in the calendar year used to calculate the apportionment. (2) Had more than 10,000 passenger boardings in the calendar year used to calculate the apportionment. |
| d. State Apportionment (including Insular) 49 USC § 47114(d)(2) 49 USC § 47114(d)(3)(B) |
Per 49 USC § 47114(d)(2), 18.5% of total AIP available for grants minus the total nonprimary entitlements. Per 49 USC § 47114(d)(2), a total of 99.34% of the funds remaining after the deduction of nonprimary entitlement is apportioned for airports based on an area/population formula within the 50 States, the District of Columbia, and Puerto Rico. The remaining 0.66% is apportioned for airports in the insular areas (Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). |
Per 49 USC § 47114(d)(3), 20% of total AIP available for grants minus the total nonprimary entitlements. Per 49 USC § 47114(d)(3)(B), 99.38% of the funds remaining after the deduction of nonprimary entitlement is apportioned for airports based on an area/population formula within the 50 States, the District of Columbia, and Puerto Rico. The remaining 0.62% is apportioned for airports in the insular areas (Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). |
| Alaska Supplemental | ||
| e. Alaska Supplemental 49 USC § 47114(e) |
Per 49 USC § 47114(e)(1), Alaskan airports are apportioned at least as much money as they were apportioned in fiscal year 1980 under Section 15(a)(3)(A) of the Airport and Airway Development Act of 1970. This amount is $10,672,557. |
Per 49 USC § 47114(e)(4), Alaskan airports are apportioned at least double as much money as they were apportioned in fiscal year 1980 under Section 15(a)(3)(A) of the Airport and Airway Development Act of 1970. This doubled amount is $21,345,114. |
| Small Airport Fund This is a calculation, not a set aside fund. |
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| f. Small Airport Fund 49 USC § 47116 |
The Small Airport Fund is not an actual stand-alone set-aside fund. It is merely a calculation to ensure that a required level of discretionary is used on small airports. A total of 87.5% of the amount of passenger entitlement funds reduced from large and medium hub airports (per 49 USC § 47114(f)) is used to calculate the Small Airport Fund. The Small Airport Fund is divided by airport type as follows: 1/7 to small hub. 2/7 to general aviation and reliever airports, as well as and certain public use airports with restrictions (see Table 4-3). 4/7 to nonhub primary and non-primary commercial service. |
The Small Airport Fund is not an actual stand-alone set-aside fund. It is merely a calculation to ensure that a minimum level of discretionary is used on small airports. A total of 87.5% of the amount of passenger entitlement funds reduced from large and medium hub airports (per 49 USC § 47114(f)) is used to calculate the Small Airport Fund. The Small Airport Fund is divided by airport type as follows: 1/7 to small hub. 2/7 to general aviation and reliever airports, as well as and certain public use airports with restrictions (see Table 4-3). 4/7 to nonhub primary and non-primary commercial service. |
| Discretionary Includes Discretionary Set Asides and Remaining Discretionary Remainder of AIP after above distributions. |
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| Discretionary Set Asides | ||
| g. Noise and Environmental Set Aside 49 USC § 47117(e)(1)(A) |
At least 35% of discretionary, but not more than $300 million. | At least 35% of discretionary, but not more than $300 million. |
| h. MAP Set Aside 49 USC § 47117(e)(1)(B) |
At least 4% of discretionary. | At least 4% of discretionary. |
| i. Reliever Set Aside 49 USC § 47117(e)(1)(C) |
None. | At least 0.66% (2/3 of 1%) of discretionary. |
| Remaining Discretionary Includes Discretionary that remains after calculating the Discretionary Set Asides 49 USC § 47115(a) |
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| j. Capacity/ Safety/ Security/ Noise (C/S/S/N) 49 USC § 47115(c) |
75% of remainder of AIP after above distributions and set-asides, and 75% of 12.5% of the returned entitlements that are not allocated to the Small Airport Fund. |
75% of remainder of AIP after above distributions and set-asides, and 75% of 12.5% of the returned entitlements that are not allocated to the Small Airport Fund. |
| k. Pure Discretionary 49 USC § 47115(b) |
25% of remainder of AIP after above distributions and set-asides, and 25% of 12.5% of the returned entitlements that are not allocated to the Small Airport Fund. |
25% of remainder of AIP after above distributions and set-asides, and 25% of 12.5% of the returned entitlements that are not allocated to the Small Airport Fund. |
| l. Discretionary from Converted Entitlements/ Apportionments 49 USC § 47117(f) |
No calculation. This funding is obtained from carrying over entitlements and apportionments to the next year. This funding is not subject to the set aside calculation requirements. |
No calculation. This funding is obtained from carrying over entitlements and apportionments to the next year. This funding is not subject to the set aside calculation requirements. |
| Fund Type | Percentage |
|---|---|
| a. Passenger Entitlement | 27.01% |
| b. Cargo Entitlement | 3.50% |
| c. Nonprimary Entitlements | 12.01% |
| d. State Apportionment | 7.99% |
| e. Alaska Supplemental | 0.67% |
| f. Noise and Environmental Set Aside | 3.37% |
| g. MAP Set Aside | 0.39% |
| h. Reliever Set Aside | 0.06% |
| i. Small Airport Fund | 16.33% |
| j. Capacity/ Safety/ Security/ Noise (C/S/S/N) | 4.36% |
| k. Pure Discretionary | 1.45% |
| l. Discretionary from Converted Entitlements/Apportionments | 22.85% |
4-5. Types of Potential Funding by Airport Type (Including Airport Type Definitions).
As established in 49 USC § 47104, only public-use airports in the NPIAS are eligible for AIP funding. These airports are classified into various categories as shown in Table 4-3, along with the types of potential funding that an ADO can apply to these airport types.
| Airport Type | And meets all of the following Airport Criteria | Types of Potential Funding (See Paragraphs 4-6 and 4-7 for additional restrictions by airport and project type) |
|---|---|---|
| a. Large Hub | (1) Commercial Service Airport. Publicly owned airport that has at least 2,500 passenger boardings each calendar year and receives scheduled passenger service. (Note: Privately owned airports are not commercial service airports per 49 USC § 47102(7) even if the airport has at least 2,500 passenger boardings.) (2) Primary Airport. A commercial service airport with more than 10,000 annual passenger boardings per 49 USC § 47102(16). (3) Meets Large Hub Criteria. 1% or more of annual passenger boardings per 49 USC § 47102(11). |
Passenger Entitlement Discretionary Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. |
| b. Medium Hub | (1) Commercial Service Airport. Publicly owned airport that has at least 2,500 passenger boardings each calendar year and receives scheduled passenger service. (Note: Privately owned airports are not commercial service airports per 49 USC § 47102(7) even if the airport has at least 2,500 passenger boardings.) (2) Primary Airport. A commercial service airport with more than 10,000 annual passenger boardings per 49 USC § 47102(16). (3) Meets Medium Hub Criteria. At least 0.25%, but less than 1% or more of annual passenger boardings per 49 USC § 47102(13). |
Passenger Entitlement Discretionary Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. |
| c. Small Hub | (1) Commercial Service Airport. Publicly owned airport that has at least 2,500 passenger boardings each calendar year and receives scheduled passenger service. (Note: Privately owned airports are not commercial service airports per 49 USC § 47102(7) even if the airport has at least 2,500 passenger boardings.) (2) Primary Airport. A commercial service airport with more than 10,000 annual passenger boardings per 49 USC § 47102(16). (3) Meets Small Hub Criteria. At least 0.05%, but less than 0.25% or more of annual passenger boardings per 49 USC § 47102(25). |
Passenger Entitlement Small Airport Fund Discretionary Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. |
| d. Nonhub Primary | (1) Commercial Service Airport. Publicly owned airport that has at least 2,500 passenger boardings each calendar year and receives scheduled passenger service. (Note: Privately owned airports are not commercial service airports per 49 USC § 47102(7) even if the airport has at least 2,500 passenger boardings.) (2) Primary Airport. A commercial service airport with more than 10,000 annual passenger boardings per 49 USC § 47102(16). (3) Meets Nonhub Criteria. More than 10,000, but less than 0.05% or more of annual passenger boardings per 49 USC § 47102(14). |
Passenger Entitlement Small Airport Fund Discretionary Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. |
| e. Virtual Primary (Scenario 1) Per 49 USC § 47114 (c)(1)(E) |
(1) Primary Airport in Last Fiscal Year. A commercial service airport with more than 10,000 passenger boardings two calendar years preceding the current fiscal year (2) Meets Non Primary Airport Criteria in Current Fiscal Year. Less than 10,000 annual passenger boardings in the calendar year before the current fiscal year. (3) Reason for Fall of Passenger Boardings. APP-400 must determine that the cause of the shortfall in passenger boardings was a temporary but significant interruption in service by an air carrier to that airport due to an employment action, natural disaster, or other event unrelated to the demand for air transportation at the affected airport. (a) Examples of temporary but significant interruptions that have qualified for this provision: (i) Closure of a single-runway airport for three months for runway rehabilitation. (ii) FAA grounding of the air carrier serving the airport for several months. (b) Examples of shortfalls in passenger boardings that have not qualified for this provision: (i) Air carrier business decisions, such as canceling lightlyloaded flights. (ii) Air carrier business decision to reduce the number of seats available in the market by using smaller aircraft or removing seats from an aircraft. (iii) Nationwide issues such as pilot shortages or rising fuel costs. The provision is specific that the interruption is to “that” airport, which excludes issues affecting many airports. (iv) The sponsor has not taken all reasonable measures to ensure that enplanements are correctly reported. (4) Duration. This virtual primary status is only good for one fiscal year based on the above criteria. |
Passenger Entitlement Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. Note: If APP-400 determines that the airport qualifies as a virtual primary, the current fiscal year passenger entitlement amount will be equal to entitlement amount in the preceding fiscal year. |
| f. Virtual Primary (Scenario 2) Per Section 141(b) of the FAA Modernization and Reform Act of 2012 (Public Law 112-95) |
(1) Primary Airport in Fiscal Year 2009. A commercial service airport with more than 10,000 passenger boardings in calendar year 2007. (2) Meets Non Primary Airport Criteria in Fiscal Years 2011 or 2012 Less than 10,000 annual passenger boardings in either calendar year 2009 or 2010. (3) Duration This virtual primary status is only good for fiscal years 2012 and 2013. |
Passenger Entitlement Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. Note: If APP-400 determines that the airport qualifies as a virtual primary, the current fiscal year passenger entitlement amount will be equal to entitlement amount in fiscal year 2009. |
| g. Virtual Primary (Scenario 3) Per 49 USC § 47114 (c)(1)(F) |
(1) Primary Airport in Fiscal Year 2014. A commercial service airport with more than 10,000 passenger boardings in calendar year 2012. (2) Scheduled Service in Calendar Year 2015. Had scheduled service at any point in calendar year 2015 (the year used to calculate the apportionment for fiscal year 2017). (3) Meets Nonprimary Airport Criteria in Fiscal Year 2017. Less than 10,000 annual passenger boardings in calendar year 2015. (4) Duration. This virtual primary status is only good for fiscal year 2017 and 2018, unless extended by Congress. |
Passenger Entitlement Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement State Apportionment – Per 49 USC § 47114(d)(4), State Apportionment may be used by any size public airport in Hawaii, Alaska or Puerto Rico. Note: If APP-400 determines that the airport qualifies as a virtual primary, the current fiscal year passenger entitlement amount will be equal to entitlement amount in fiscal year 2009. |
| h. Nonprimary Commercial Service (also referred to as Nonhub Nonprimary) |
(1) Commercial Service Airport. Publicly owned airport that has at least 2,500 passenger boardings each calendar year and receives scheduled passenger service. (Note: Privately owned airports are not commercial service airports per 49 USC § 47102(7) even if the airport has at least 2,500 passenger boardings.) (2) Not a Primary Airport. Not a primary airport because the airport has less than or equal to 10,000 annual passenger boardings per 49 USC § 47102(16). |
Nonprimary Entitlement State Apportionment Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement |
| i. General Aviation | (1) Public Airport. Per 49 USC § 47102(8), a public airport that is located within a state. Per 49 USC § 47102(21), a public airport is an airport used or intended to be used for public purposes that is under the control of a public agency where the area used or intended to be used for the landing, taking off, or surface maneuvering of aircraft is publicly owned. (2) Not a Commercial Service Airport. Per 49 USC § 47102(8), the airport must either have no scheduled service, or scheduled service with less than 2,500 annual passenger boardings each year. |
Nonprimary Entitlement State Apportionment Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement |
| j. Reliever | (1) Airport Designated as a Reliever by the FAA. The criteria for the FAA to designate an airport as a reliever is as follows: (a) Definition in Statute. Per 49 USC § 47102(23), a reliever is an airport the Secretary designates to relieve congestion at a commercial service airport and to provide more general aviation access to the overall community (b) How the FAA (Secretary) Designates Relievers. Per the current version of FAA Order 5090-3, Field Formulation of the National Program of Integrated Airport Systems, reliever airports must have more than 25,000 annual itinerant operations or at least 100 based aircraft that is relieving a commercial service airport that serves a metropolitan area with a population of at least 250,000 persons or at least 250,000 annual enplaned passengers, and operates at 60% of its capacity, or would be operated at such a level before being relieved by one or more reliever airports, or is subject to restrictions that limit activity that would otherwise reach 60% of capacity. |
Nonprimary Entitlement State Apportionment Small Airport Fund Discretionary Alaska Supplemental Cargo Entitlement Note: To be eligible to receive the reliever set-aside, per 49 USC § 471117(e)(1)(C), the reliever airport must have more than 75,000 annual operations, a runway of greater than 5,000 feet, a precision instrument landing procedure, 100 based aircraft, and must relieve an airport with 20,000 hours of annual delays of commercial passenger aircraft operations. |
| k. General Aviation Airport Eligible for Minimum Primary Entitlement (per 49 USC § 47114 (d)(7)) |
(1) Received Large Certificated Air Carrier Service. Per 49 USC § 47114(d)(7)(A), received scheduled or unscheduled air service from a large certificated air carrier (as defined in 14 CFR part 241, or such other regulations as may be issued by the Secretary of Transportation under the authority of 49 USC § 47109) (2) Over 10,000 Passenger Boardings. Had more than 10,000 passenger boardings in the calendar year used to calculate the apportionment, per 49 USC § 47114(d)(7)(B). |
Nonprimary Entitlement State Apportionment Small Airport Fund Discretionary (except for C/S/S/N) Alaska Supplemental Cargo Entitlement Note that these airports receive the amount of minimum primary entitlements, but as nonprimary entitlements. |
| l. Privately-Owned, Public Use Airport meeting Statutory Limitations | (1) Public Use Airport Meeting Statutory Limitations. Per 49 USC § 47102(22)(B)(ii), a privately-owned airport used or intended to be used for public purposes that has at least 2,500 passenger boardings each year and receives scheduled passenger aircraft service. (2) NPIAS Airport. Designated by the FAA to be a NPIAS Airport. |
Small Airport Fund Discretionary (except for C/S/S/N) |
4-6. Airports that Can Use Each Fund Type (Funding Restrictions by Airport Type).
Table 4-4 provides a comprehensive list of airport limitations by fund type.
| Fund Type and Legislative Reference | Public Use NPIAS Airports that Can Use this Funding |
|---|---|
| a. Passenger Entitlement 49 USC § 47114(c)(1) |
(1) Primary and virtual primary airports. (2) Airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are excluded per 49 USC § 47115(j). |
| b. Cargo Entitlement 49 USC § 47114(c)(2) |
(1) Airports that have more than one million pounds of landed all cargo weight annually. (2) Airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are excluded per 49 USC § 47115(j). |
| c. Nonprimary Entitlement 49 USC § 47114(d)(3) |
(1) General aviation, reliever, and nonprimary commercial service airports. (2) Airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are excluded per 49 USC § 47115(j). |
| d. State Apportionment 49 USC § 47114(d)(2) |
(1) General aviation, reliever, and nonprimary commercial service airports within the specific state or insular area (except for in Alaska, Hawaii and Puerto Rico, where the funds can be used on any airport type per 49 USC § 47114(d)(4)). (2) Primary and virtual primary airports only when the project is an integrated airport system planning project that encompasses one or more primary airports per 49 USC § 47114(d)(6). (3) Airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are excluded per 49 USC § 47115(j). |
| e. Alaska Supplemental 49 USC § 47114(e) |
(1) Airports located in Alaska. |
| f. Small Airport Fund 49 USC § 47116 |
(1) Small hub, nonhub, virtual primary, nonprimary commercial service, and general aviation, and reliever airports, as well as and certain public use airports with restrictions (see Table 4-3). (2) 49 USC § 47116(c), also specifically allows an airport in block grant states to receive grants directly from the FAA with small airport funds as if the state were not within the program. |
| g. Discretionary: Noise and Environmental Set Aside 49 USC § 47117(e)(1)(A) |
(1) Airports. Any airport eligible for one of the follow projects: (a) Airport Noise Compatibility Planning. Airport noise compatibility planning under section 49 USC § 47505(a)(2). (b) Noise Compatibility Program Projects. Airport noise compatibility program projects approved by the FAA in a noise compatibility program under 49 USC § 47504(c). (c) Noise Mitigation Projects in a Record of Decision. Noise mitigation projects approved in an environmental record of decision for an airport development project. (d) Compatible Land Use Planning/Projects. Compatible land use planning and projects carried out by state and local governments under 49 USC § 47141. (e) Americans with Disabilities Act of 1990 (ADA) Projects. Airport development projects to comply with ADA per 49 USC § 47102(3)(F). (f) Clean Air Act Projects. Airport development projects to comply with the Clean Air Act (42 USC § 7401) per 49 USC § 47102(3)(F). (g) Federal Water Pollution Control Act (commonly referred to as the Clean Water Act) Projects. Airport development projects (including equipment) required to comply with the Federal Water Pollution Control Act (33 USC § 1251 et seq) per 49 USC § 47102(3)(F). In addition, water quality mitigation projects to comply with the Federal Water Pollution Control Act that are approved in an environmental record of decision for an airport development project may use this type of funding. (h) Voluntary Airport Low Emissions (VALE) Projects. Projects that meet the requirements of the VALE program per 49 USC § 47102(3)(K) and 49 USC § 47102(3)(L). These requirements are discussed in Section 5 of Chapter 6. (2) Non-Airport Sponsors. Any non-airport sponsors that is eligible for one of the follow projects: (a) Airport Noise Compatibility Planning. Airport noise compatibility planning under section 49 USC § 47505(a)(2). (b) Noise Compatibility Program Projects. Airport noise compatibility program projects approved by the FAA in a noise compatibility plan under 49 USC § 47504(c). (c) Noise Mitigation Projects in a Record of Decision. Noise mitigation projects approved in an environmental record of decision for an airport development project. (d) Compatible Land Use Planning/Projects. Compatible land use planning and projects carried out by state and local governments under 49 USC § 47141. (3) Sponsors and Airports Not Included. Sponsors and airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are able to receive grants from the discretionary fund in 49 USC § 47115 and the Small Airport Fund in 49 USC § 47116 per 49 USC § 47115(j), which means that they are not able to receive grants from the Noise and Environmental Set Aside in 49 USC § 47117(e)(1)(A). |
| h. Discretionary: MAP Set Aside 49 USC § 47117(e)(1)(B) |
(1) FAA designated Military Airport Program airports. These are former military airports closed or realigned and designated for conversion to civil or joint use. (2) Sponsors and airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are able to receive grants from the discretionary fund in 49 USC § 47115 and the Small Airport Fund in 49 USC § 47116 per 49 USC § 47115(j). (3) Per 49 USC § 47118(h), an FAA designated safety critical airport. (4) Sponsors and airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are able to receive grants from the discretionary fund in 49 USC § 47115 and the Small Airport Fund in 49 USC § 47116 per 49 USC § 47115(j), which means that they are not able to receive grants from the MAP Set Aside in 49 USC § 47117(e)(1)(B). |
| i. Discretionary: Reliever Set Aside 49 USC § 47117(e)(1)(C) |
(1) Only those reliever airports with more than 75,000 annual operations, a runway of greater than 5,000 feet, a precision instrument landing procedure, 100 based aircraft, and relieves an airport with 20,000 hours of annual delays of commercial passenger aircraft operations. (2) Sponsors and airports in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau are able to receive grants from the discretionary fund in 49 USC § 47115 and the Small Airport Fund in 49 USC § 47116 per 49 USC § 47115(j), which means that they are not able to receive grants from the Reliever Set Aside in 49 USC § 47117(e)(1)(C). |
| j. Discretionary: Capacity/ Safety/ Security/ Noise (C/S/S/N) 49 USC § 47115(c) |
(1) Only primary and reliever airports. |
| k. Pure Discretionary 49 USC § 47115(b) |
(1) Any public-use NPIAS airport. (2) Midway Island Airport during fiscal years 2012-2018 per Section 186(d) of the Vision 100 – Century of Aviation Reauthorization Act (Public Law 108-176) as amended by Section 102 of Division M, Title I of the Consolidated Appropriations Act, 2018 (Public Law 115-141). This funding can only be issued through a reimbursable agreement between the FAA and the Secretary of the Interior and is limited to $2.5 million of pure discretionary per fiscal year. |
| l. Discretionary from Converted Entitlements/ Apportionments 49 USC § 47117(f) |
(1) Any public-use NPIAS airport. |
4-7. Project Restrictions by Fund Type.
Table 4-5 provides a comprehensive list of project restrictions by fund type.
| Fund Type | Project Restrictions by Fund Type |
|---|---|
| a. Passenger Entitlement | (1) Non-Revenue Producing Public Parking Lots. Not allowed for any airport type except a nonhub primary airport (only if associated with a commercial service terminal building) per 49 USC § 47119(a)(2) and 49 USC § 47119(c)(1). (2) Revenue Producing Aeronautical Support Facilities. Not allowed. (The Act does not authorize this funding for this purpose.) |
| b. Cargo Entitlement | (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details). (2) Non-Revenue Producing Public Parking Lots. Not allowed (the Act does not authorize this funding for this purpose). (3) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). (4) Relocation of Sponsor Owned Facilities Caused by a Change in FAA Design Standards. Not allowed (see Paragraph 3-74 for details). |
| c. Nonprimary Entitlement | (1) Non-Revenue Producing Public Parking Lots. Not allowed for any airport types except nonprimary commercial service airports (only if associated with a commercial service terminal building) or general aviation and reliever airports (only if associated with a general aviation terminal building) per 49 USC § 47119(a)(2) and 49 USC § 47119(c)(5). |
| d. State Apportionment | (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details). (2) Non-Revenue Producing Public Parking Lots. Not allowed (the Act does not authorize this funding for this purpose). (3) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). |
| e. Alaska Supplemental | (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details). (2) Non-revenue Producing Public Parking Lots. Not allowed (the Act does not authorize this funding for this purpose). (3) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). (4) Relocation of Sponsor Owned Facilities Caused by a Change in FAA Design Standards. Not allowed (see Paragraph 3-74 for details). (5) Contract Air Traffic Control Towers. Not allowed. Funding is restricted by airport and fund type per 49 USC § 47124(b)(4)(A). |
| f. Small Airport Fund | (1) Terminal Buildings. Not allowed for any airport type at a nonhub primary airport (see Paragraph N-11 for details). (2) Non-Revenue Producing Public Parking Lots. Not allowed for any airport types except nonhub primary airports (only if associated with a commercial service terminal building) per 49 USC § 47119(a)(2) and 49 USC § 47119(c)(3). (3) Projects without Small Airport Fund Notification. The ADO must not use these funds on any project unless the ADO notifies the sponsor in writing that the project is being funded, all or in part, by the Small Airport Fund per 49 USC § 47116(f). (4) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). (5) Relocation of Sponsor Owned Facilities Caused by a Change in FAA Design Standards. Not allowed (see Paragraph 3-74 for details). (6) Contract Air Traffic Control Towers. Not allowed. Funding is restricted by airport and fund type per 49 USC § 47124(b)(4)(A). |
| g. Noise and Environmental Set Aside | (1) Requesting discretionary funding on higher priority projects. Per 49 USC § 47120, the ADO must give lower priority to discretionary projects submitted by the sponsor if the sponsor proposes using entitlements funds for a lower priority project than the priority of the project for which discretionary funding is being requested. (2) Projects that are not Noise, Air Quality, or Environmental. The ADO must not use these funds on projects except eligible noise, air quality, and specific environmental projects. Energy efficiency studies and projects are not included (see Section 7 of Chapter 6). Per 49 USC § 47117(e)(1)(A), the eligible projects are restricted to: (a) Airport Noise Compatibility Planning. Airport noise compatibility planning under section 49 USC § 47505(a)(2). (b) Noise Compatibility Program Projects. Airport noise compatibility program projects approved by the FAA in a noise compatibility program under 49 USC § 47504(c). (c) Noise Mitigation Projects in a Record of Decision. Noise mitigation projects approved in an environmental record of decision for an airport development project. (d) Compatible Land Use Planning/Projects. Compatible land use planning and projects carried out by state and local governments under 49 USC § 47141. (e) Americans with Disabilities Act of 1990 (ADA) Projects. Airport development projects to comply with ADA per 49 USC § 47102(3)(F). (f) Clean Air Act Projects. Airport development projects to comply with the Clean Air Act (42 USC § 7401) per 49 USC § 47102(3)(F). (g) Federal Water Pollution Control Act (commonly referred to as the Clean Water Act) Projects. Airport development projects (including equipment) required to comply with the Federal Water Pollution Control Act (33 USC § 1251 et seq) per 49 USC § 47102(3)(F). In addition, water quality mitigation projects to comply with the Federal Water Pollution Control Act that are approved in an environmental record of decision for an airport development project may use this type of funding. (h) Voluntary Airport Low Emissions (VALE) Projects. Projects that meet the requirements of the VALE program per 49 USC § 47102(3)(K) and 49 USC § 47102(3)(L). These requirements are discussed in Section 5 of Chapter 6. (i) Zero Emission Vehicle and Infrastructure Projects. Projects that meet the requirements of this pilot program per 49 USC § 47136a(a). This is further discussed in Section 6 of Chapter 6. |
| h. MAP Set Aside | (1) Projects that are not approved under MAP or 49 USC § 47118(h). The ADO must not use these funds on projects that are not approved under MAP (see Section 3 of Chapter 6 for details) or as an FAA designated safety critical project under 49 USC § 47118(h) (see Paragraph 2-3 for details). |
| i. Reliever Set Aside | (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details). (2) Non-Revenue Producing Public Parking Lots. Not allowed (the Act does not authorize this funding for this purpose). (3) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). (4) Relocation of Sponsor Owned Facilities Caused by a Change in FAA Design Standards. Not allowed (see Paragraph 3-74 for details). (5) Contract Air Traffic Control Towers. Not allowed. Funding is restricted by airport and fund type per 49 USC § 47124(b)(4)(A). |
| j. Remaining Discretionary (C/S/S/N, Pure Discretionary, and Discretionary from Converted Entitlements/ Apportionments) | (1) Terminal Buildings. Only allowed in limited amounts at non-hub primary airports, nonprimary commercial service airports, and reliever airports and in limited circumstances where the airport has changed airport types (see Paragraph N-11 for details). (2) Non-Revenue Producing Public Parking Lots. Not allowed except for nonhub primary airports, nonprimary commercial service airports, and reliever airports per 49 USC § 47119(a)(2), 49 USC § 47119(c)(2), and 49 USC § 47119(c)(3). The non-revenue producing public parking lot is only allowable if it is associated with an eligible commercial service or general aviation terminal building. The same discretionary funding rules and amounts apply for non-revenue producing public parking lots as the associated terminal (see Item 1 above that discuss discretionary rules for commercial service and general aviation terminal buildings). (3) Revenue Producing Aeronautical Support Facilities. Not allowed (the Act does not authorize this funding for this purpose). (4) Relocation of Sponsor Owned Facilities Caused by a Change in FAA Design Standards. Not allowed (see Paragraph 3-74 for details). (5) Use on Higher Priority Projects than Entitlement Projects. To meet the requirements of 49 USC § 47115(d)(2)(A) and 49 USC § 47120, the ADO must obtain prior approval from APP-520 to use these funds on a project if the sponsor’s entitlements will be used on lower priority projects. (6) Consideration of Project Priority. To comply with 49 USC § 47115(d)(2)(A), the ADO, prior to selecting a project for this type of funding, must determine if the decision will impact the ability to fund other projects with a higher national priority rating in the same fiscal year and obtain Regional office approval. (7) Consideration of Project Execution. To comply with 49 USC § 47115(d)(2)(B), the ADO must consider whether the sponsor can start the project in either the current fiscal year or six months after the grant is issued, whichever is later. Per FAA policy, starting the project means issuing a notice to proceed for construction projects; executing the purchase order for equipment projects; beginning design for projects that include design; or beginning planning for planning projects. (8) Contract Air Traffic Control Towers. Not allowed. Funding is restricted by airport and fund type per 49 USC § 47124(b)(4)(A). |
4-8. Fund Expiration Time Frames by Airport and Fund Type.
49 USC § 47117(b) defines how long AIP funding is available. Once AIP funds are apportioned, the funds are only available for the number of fiscal years listed in Table 4-6.
| For the following airport type… | The following funds… | Are available for the fiscal year in which the funds are apportioned plus… |
|---|---|---|
| a. Small, Medium, or Large Hub Primary | Passenger Entitlement Cargo Entitlement |
Two fiscal years immediately following the year in which the funds are apportioned, or a total of three years. These funds continue to have a three year life even if the airport type changes after the funds have been allocated. |
| b. Nonhub Primary | Passenger Entitlement Cargo Entitlement |
Three fiscal years immediately following the year in which the funds are apportioned, or a total of four years. These funds continue to have a four year life even if the airport type changes after the funds have been allocated. |
| c. Nonprimary | Cargo Entitlement Nonprimary Entitlement |
Three fiscal years immediately following the year in which the funds are apportioned, or a total of four years. These funds continue to have a four year life even if the airport type changes after the funds have been allocated. |
| d. N/A | State Apportionment (including Insular) Alaska Supplemental |
Two fiscal years immediately following the year in which the funds were apportioned, or a total of three years. |
| e. N/A | Discretionary | Zero additional years, or a total of one year. |
4-9. Federal Share by Airport Type (Including Exceptions).
The federal share of allowable project costs is a fixed percentage of the allowable project costs. The federal share by airport type, as well as the associated exceptions, is listed in Table 4-7.
| Airport Type | Normal Federal Share | Exceptions |
|---|---|---|
| a. Large Hub b. Medium Hub |
75% | (1) Noise Projects. 80% for noise projects per 49 USC § 47504(c)(4) Note: Per 49 USC § 47505(b), the normal federal share for noise compatibility planning projects remains at 75% unless the airport receives a different federal share in one of the other exceptions listed here. In addition, the federal share for non-noise compatibility projects that are funded through the environmental set-aside such as VALE, noise planning projects, and other non-noise related environmental projects also remain at 75%. (2) States with Large Amounts of Public Land. 49 USC § 47109(b) increases the Federal share at some airports in states with large amounts of publicly owned land. These airports and their increased Federal shares are listed in Paragraph 4-10. (3) Insular Areas. Airports in American Samoa, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands have a waiver of up to $200,000 of the sponsor’s share per 33 USC § 2310. Therefore, a grant of up to $2,000,000 at the 90% participation rate needs no contribution from the sponsor. (4) Special Rule for Transition from Small to Medium Hub. The federal share for a medium hub is at 90% for the two fiscal years following a status change from small to medium hub per 49 USC § 47109(e). (5) Private Ownership Pilot Program. 49 USC § 47109(a)(4) requires a 70% Federal share for projects funded with discretionary at airports in the private ownership pilot program under 49 USC § 47134. (6) Airport Development Rights Pilot Program. 49 USC § 47138(b)(2) allows any Federal share up to and including 90% for projects meeting the requirements in Section 8 of Chapter 6. (7) Zero Emission Airport and Infrastructure Pilot Program. 49 USC § 47136a(d) requires a 50% Federal share for projects meeting the requirements in Section 6 of Chapter 6. (8) Fiscal Year 2002 Security Projects. For fiscal year 2002, 49 USC § 47109(a)(5) allowed a 100% Federal share for certain security projects allowed under Public Law 107-71. |
| c. Small Hub d. Nonhub Primary |
90% | (1) Temporary Increase to 95%. Section 161 of Vision 100 (Public Law 108-176, December 12, 2003) added a Note to 49 USC § 47109 to temporarily increase the Federal share of allowable project costs from 90% to 95% for Fiscal Years 20042007. Although scheduled to sunset at the end of Fiscal Year 2007, Congress extended this temporary increase from Fiscal Years 2008-2011. The FAA Modernization and Reform Act of 2012 (Public Law 112-95) did not extend this temporary provision, and the Federal share reverted back to 90% except as listed below. (2) States with Large Amounts of Public Land. 49 USC § 47109 increases the Federal share at some airports in states with large amounts of publicly owned land. These airports and their increased Federal shares are listed in Paragraph 4-10. (3) Nonhub Primary Airports in States with Large Amounts of Public Land. The Consolidated and Further Continuing Appropriations Act, 2015, Section 119F, modifies the Federal share of certain nonhub primary airports. The bill amends 49 USC § 47109(c)(2). Specifically, if a primary non-hub airport located in a public land state is within 15 miles of another public land state, the Federal share increases to an average of the two states. If the average is less, the airport Federal share remains the same. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year. (4) Economically Distressed Areas. Per 49 USC § 47109(f), the Federal share for smaller airports (those that are not large or medium hubs) who are both receiving Essential Air Service (EAS) and are located in economically distressed areas (EDA) is 95%. APP-500 will obtain a list of the EAS airports from the DOT office administering the EAS program. APP-500 will use the EDA data published by the Federal Highway Administration to determine which EAS airports are in EDAs. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year and will not make mid-year changes based on new EAS or EDA data. (5) Innovative Finance Grants. A grant issued under the innovative finance demonstration program per 49 USC § 47135 may have a flexible Federal shares. (6) Insular Areas. Airports in American Samoa, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands have a waiver of up to $200,000 of the sponsor’s share per 33 USC § 2310. Therefore, a grant of up to $800,000 at the 75% participation rate needs no contribution from the sponsor. (7) Turbine Powered Aircraft. 49 USC § 47116(d)(2) directs the FAA to give consideration to airport development projects to support operations by turbine powered aircraft if the nonFederal share of the project is at least 40%. For these projects, the Federal share must be less than 60%. (8) Private Ownership Pilot Program. 49 USC § 47109(a)(4) requires a 70% Federal share for projects funded with discretionary at airports in the private ownership pilot program under 49 USC § 47134. (9) Airport Development Rights Pilot Program. 49 USC § 47138(b)(2) allows any Federal share up to and including 90% for projects meeting the requirements in Section 8 of Chapter 6. (10) Zero Emission Airport and Infrastructure Pilot Program. 49 USC § 47136a(d) requires a 50% Federal share for projects meeting the requirements in Section 6 of Chapter 6. (11) Fiscal Year 2002 Security Projects. For fiscal year 2002, 49 USC § 47109(a)(5) allowed a 100% Federal share for certain security projects under Public Law 107-71. |
| e. Nonprimary Commercial Service f. General Aviation g. Reliever |
90% | (1) Temporary Increase to 95%. Section 161 of Vision 100 (Public Law 108-176) added a note to 49 USC § 47109 to temporarily increase the Federal share of allowable project costs from 90% to 95% for Fiscal Years 2004-2007. Although scheduled to sunset at the end of Fiscal Year 2007, Congress extended this temporary increase from Fiscal Years 20082011. The FAA Modernization and Reform Act of 2012 (Public Law 112-95) did not extend this temporary provision, and the Federal share reverted back to 90% except as listed below. (2) States with Large Amounts of Public Land. 49 USC § 47109 increases the Federal share at some airports in states with large amounts of publicly owned land. These airports and their increased Federal shares are listed in Paragraph 4-10. (3) Nonprimary Commercial Service Airports in States with Large Amounts of Public Land. The Consolidated Appropriations Act, 2017, Section 119E, modifies the Federal share of certain nonprimary commercial service airports. The bill amends 49 USC § 47109(c)(2). Specifically, if a nonprimary commercial service airport located in a public land state is within 15 miles of another public land state, the Federal share increases to an average of the two states. If the average is less, the airport Federal share remains the same. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year. (4) Nonhub Primary Airports in States with Large Amounts of Public Land. The Consolidated and Further Continuing Appropriations Act, 2015, Section 119F, modifies the Federal share of certain nonhub primary airports. The bill amends 49 USC § 47109(c)(2). Specifically, if a primary non-hub airports located in a public land state is within 15 miles of another public land state, the Federal share increases to an average of the two states. If the average is less, the airport Federal share remains the same. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year. (5) Economically Distressed Areas. Per 49 USC § 47109(f), the Federal share for smaller airports (those that are not large or medium hubs) who are both receiving Essential Air Service (EAS) and are located in economically distressed areas (EDA) is 95%. APP-500 will obtain a list of the EAS airports from the DOT office administering the EAS program. APP-500 will use the EDA data published by the Federal Highway Administration to determine which EAS airports are in EDAs. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year and will not make mid-year changes based on new EAS or EDA data. (6) State Block Grant Subgrants. Per 49 USC § 47109(a)(2), states may issue state block grant subgrants at a different participation percentage than the associated state block grant. The subgrant participation rate must be equal or lower than the fiscal year Federal percentage rate of the associated state block grant. In FY 2004 and FY 2012, the Federal share for nonprimary airports changed. Per FAA policy, states must either clearly document when they are commingling funds of different Federal percentages within the same subgrant or issue separate subgrants to avoid confusion. (7) Innovative Finance Grants. A grants issued under the innovative finance demonstration program per 49 USC § 47135 may have a flexible Federal shares. (8) Insular Areas. Airports in American Samoa, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands have a waiver of up to $200,000 of the sponsor’s share per 33 USC § 2310. Therefore, a grant of up to $800,000 at the 75% participation rate needs no contribution from the sponsor. (9) Private Ownership Pilot Program. 49 USC § 47109(a)(4) requires a 70% Federal share for projects funded with discretionary at airports in the private ownership pilot program under 49 USC § 47134. (10) Airport Development Rights Pilot Program. 49 USC § 47138(b)(2) allows any Federal share up to and including 90% for projects meeting the requirements in Section 8 of Chapter 6. (11) Zero Emission Airport and Infrastructure Pilot Program. 49 USC § 47136a(d) requires a 50% Federal share for projects meeting the requirements in Section 6 of Chapter 6. (12) Fiscal Year 2002 Security Projects. For fiscal year 2002, 49 USC § 47109(a)(5) allowed a 100% Federal share for certain security projects allowed under Public Law 107-71. |
4-10. Federal Share Exception for States with Large Amounts of Public Land
49 USC § 47109(b) includes special language that increases the Federal share for airports in states that have more than 5% public or Indian land as defined by the Department of the Interior’s Bureau of Land Management. 49 USC § 47109 requires that the FAA determine if an airport is in a public land state and whether the current Federal share is less than the Federal share was on June 30, 1975. On that date, the Federal share of most projects was 50% for large hub airports (not large and medium hub airports as exists in current legislation) and 75% for all other airport types, plus the bump-up for airports in the public land states.
Table 4-8 contains the increased Federal share for those states that have large amounts of public land. Unless otherwise noted in these tables, the Federal share percentages are based on 49 USC § 47109.
Background information on the calculation of the increased Federal share for states with large amounts of public land is found in Appendix Y.
| State | Large Hub Airports | Medium Hub Airports | Small or Nonhub Commercial Service airports* | Non-primary General Aviation and Reliever Airports |
|---|---|---|---|---|
| a. Alaska (AK) | 75% | 87.76% | 93.75% | 93.75% |
| b. Arizona (AZ) | 75% | 91.06% | 91.06% | 91.06% |
| c. California (CA) | 75% | 80.59% | 90.66% | 90.00% |
| d. Colorado (CO) | 75% | 79.02% | 90.00% | 90.00% |
| e. Idaho (ID) | 75% | 83.51% | 93.75% | 90.00% |
| f. Montana (MT) | 75% | 79.47% | 90.00% | 90.00% |
| g. Nevada (NV) | 75% | 93.75% | 93.75% | 93.75% |
| h. New Mexico (NM) | 75% | 84.29% | 93.75% | 90.00% |
| i. Oregon (OR) | 75% | 83.33% | 93.75% | 90.00% |
| j. South Dakota (SD) | 75% | 78.55% | 90.00% | 90.00% |
| k. Utah (UT) | 75% | 90.63% | 90.63% | 90.63% |
| l. Washington (WA) | 75% | 77.31% | 90.00% | 90.00% |
| m. Wyoming (WY) | 75% | 84.58% | 93.75% | 90.00% |
* The Consolidated and Further Continuing Appropriations Act, 2015, Section 119F, modifies the Federal share of certain nonhub primary airports. Section 119E of the Consolidated Appropriations Act, 2017 extends the modification of the Federal share to certain non-primary commercial service airports. APP-500 will publish the list of airports that meet these criteria at the beginning of each fiscal year.
4-11. Transfer of Entitlement Funds between Airports.
49 USC § 47117(c) allows the FAA to transfer entitlements between airports. The intention of this statutory provision is to permit a sponsor to share its unused entitlements with another airport so that the funds do not expire or get carried over to future years. The conditions and required agreements for these transfers are outlined in Table 4-9. The Act does not allow the FAA to transfer state apportionment or Alaskan supplemental between states. The Act also does not allow the FAA to transfer entitlements to a state.
Because the FAA must know when entitlements are transferred and between which airports, the FAA requires that the sponsor sign a transfer agreement. This agreement is necessary even when the sponsor owns the airports between which the funds are being transferred.
This requirement does not apply to various location grants if each of the airports retains the rights to their specific entitlements per the state sponsorship agreement that is required for various location grants in Table 2-11. The transfer agreement requirement does apply to a various locations grant if entitlements within the grant are being transferred between any of the airports. In this case, FAA Form 5100-110, Agreement for Transfer of Entitlements (see the AIP Forms link in Appendix B) is required for each of the transfers.
| If a sponsor wants to… | Only the following entitlements can be transferred… | If the following conditions are met… | And the following agreements are provided…. |
|---|---|---|---|
| a. Transfer all or part of their entitlements between airports they own per 49 USC § 47117(c)(1). | Passenger | The airport that will receive the entitlements is in the NPIAS. The airport that will receive the entitlements is also owned by the sponsor. The sponsor requests use of the funding through the sponsor’s capital improvement plan and/or a grant application. |
The sponsor does not have to submit a waiver request or sign FAA Form 5100-110. The ADO does not need to track these actions separately. |
| b. Waive receipt of all or part of their entitlements and allowing the FAA to determine which airport will receive the entitlement per 49 USC § 47117(c)(2). | Passenger Cargo Nonprimary |
The airport that will receive the entitlements is in the NPIAS. The airport that will receive the entitlements must be in the same state or geographical area. In this case, geographical area means the same or an adjacent Standard Metropolitan Statistical Area. The sponsor must make a written request to the ADO. |
If the ADO agrees with the transfer, the ADO (not the sponsor) prepares FAA Form 5100-110. The ADO, sponsor, and sponsor’s attorney must execute the agreement in order for the ADO to transfer the funds. The agreement must only specify entitlements of one airport. The ADO must prepare separate agreements if entitlements are being transferred from more than one airport. Note: The sponsor receiving the transferred entitlements does not incur grant assurance obligations until the sponsor signs a grant that contains the transferred entitlements. The sponsor waiving receipt of the transferred entitlements is not tied to the grant assurances associated with this transferred entitlement. |
| c. Waive receipt of all or part of their entitlements and request they be used at a specific airport per 49 USC § 47117(c)(2). | Passenger Cargo Nonprimary |
The airport that will receive the entitlements is in the NPIAS. The airport that will receive the entitlements must be in the same state or geographical area. In this case, geographical area means the same or an adjacent Standard Metropolitan Statistical Area. The sponsor must make a written request to the ADO. The ADO must have concurred with transferring the entitlements to the airport the sponsor has requested. This is because the ADO, not the sponsor, has the decision authority regarding which airport will receive the transferred funds. If the ADO objects to the airport requested by the sponsor, the ADO will inform the sponsor and give the sponsor the option of withdrawing the waiver request. The sponsor is not selling, trading or bartering away their entitlement since this may be construed as using Federal funds in an inappropriate manner. In other words, a sponsor may not trade its entitlements for money or property that would not be eligible under AIP. |
If the ADO agrees with the transfer, the ADO (not the sponsor) prepares FAA Form 5100-110, The ADO, the sponsor, and sponsor’s attorney must execute the agreement in order for the ADO to transfer the funds. The agreement must only specify entitlements of one airport. The sponsor waiving funds and the sponsor receiving funds have the option to make separate agreements concerning the transfer. This agreement is between the two sponsors. The sponsors and/or their attorneys are responsible for ensuring the legality of the agreement. The FAA is not a party to the agreement, is not required to obtain the agreement, and is not responsible for enforcing the conditions of the agreement. Note: The sponsor receiving the transferred entitlements does not incur grant assurance obligations until the sponsor signs a grant that contains the transferred entitlements. The sponsor waiving receipt of the transferred entitlements is not tied to the grant assurances associated with this transferred entitlement. |
4-12. Use of Donations (or Previously Acquired Land) as the Sponsor Share.
Per 2 CFR § 200.434, the ADO has the option of allowing a sponsor to use donated items or a credit for previously acquired land as a portion or for the entire sponsor share in a grant. The ADO must use the Table 4-10 to determine if and/or how to offset the sponsor share in a grant.
| The following table… | Contains the following requirements… |
|---|---|
| Table 4-11. | General requirements. |
| Table 4-12. | Value requirements. |
| Table 4-13. | Offset process. |
| Table 4-14. | Offset examples. |
| For the following items… | The following general requirements apply… |
|---|---|
| a. Land Donated to the Sponsor | (1) The land must be AIP eligible, but does not have to be required for the project. (2) The ADO must have concurred with the value of land. The ADO has the option to either implicitly concur with the value by issuing the grant or make a written determination. In either case, the ADO must place the documentation used to support this value in the grant file. (3) The sponsor must provide information documenting when the donation or acquisition was or will be made. (4) The sponsor must provide a copy of any agreements between the donor and the sponsor and document to the ADO that the donor has/will not receive an exclusive benefit or consideration as a result of the transaction. (5) The sponsor must provide the identity of the donor and outline the relationship between the sponsor and the donor. (6) The sponsor must document to the ADO that there are no reversion clauses tied to the donation other than reversion back to the donor if and when the land is no longer needed for airport purposes. (7) The sponsor must document to the ADO that the donor was not acting as an agent for the sponsor and is not a government or quasi-government entity in the same state as the sponsor. (8) The sponsor must add the donated land and document the value that has been credited toward the sponsor share on the Exhibit A. (9) The sponsor is bound to Assurance 31 for the donated land. (10) A description of the land donated as sponsor share must be included in the grant. |
| b. Land Previously Acquired by the Sponsor | (1) The land must be AIP eligible, but does not have to be required for the project. (2) The sponsor must document to the ADO that the requirements in Appendix Q have been met. (3) The ADO must have concurred with the value of land. The ADO has the option to either implicitly concur with the value by issuing the grant or make a written determination. In either case, the ADO must place the documentation used to support this value in the grant file. (4) The sponsor must document the value of the land that has been credited toward the sponsor share on the Exhibit A. (5) The sponsor is bound to Assurance 31 for the previously acquired land. (6) A description of the land donated as sponsor share must be included in the grant. |
| c. Labor, Materials, Equipment and Services Donated to the Sponsor | (1) The ADO must determine that the labor, materials, and/or equipment costs are allowable and necessary project costs that would have normally been included in the grant. (2) The sponsor must request the use of the donated labor, materials, and/or equipment costs in writing, and the ADO must have approved the request and the value of the donated items in advance of the grant offer. The ADO must use the sponsor force account requirements provided in Paragraph 3-53 in making this determination. When applying the requirement in Paragraph 3-53, the ADO must simply substitute all references to the sponsor’s labor, materials, equipment, or services with the donated labor, materials, equipment, or services. (3) The sponsor must provide a copy of any agreements between the donor and the sponsor and document to the ADO that the donor has/will not receive an exclusive benefit or consideration as a result of the transaction. This includes the benefit of the donor avoiding costs they would have normally incurred (for instance, if donor donates excess fill to avoid paying for disposal of the fill, the donor would gain a benefit by not having to pay for the disposal.) (4) The sponsor must provide the identity of the donor and outline the relationship between the sponsor and the donor. (5) The sponsor must document to the ADO that there are no reversion clauses tied to the donation of equipment or materials. (6) The sponsor must document to the ADO that the donor was not acting as an agent for the sponsor and is not a government or quasi-government entity in the same state as the sponsor. |
| d. Labor, Materials and Supplies, Equipment, and Services Donated by the Sponsor | (1) These costs are not considered donations under 2 CFR § 200.434. Therefore, a sponsor cannot use these costs against the sponsor’s share. (2) Instead, the ADO has the option of approving these costs as force account work if all of the requirements for force account work in Paragraph 3-53 are met. Note that force account materials and supplies have the added requirement of needing to be procured per 2 CFR §§ 200 317-200.326. |
| For the following items… | The ADO must determine the value as follows… |
|---|---|
| a. Land Donated to the Sponsor | (1) The ADO must use the fair market value of the land at the time it was donated to the sponsor by an unrelated third party. Per 2 CFR § 200.434, governmental or quasi-governmental organizations located within the same state are not considered unrelated third parties for this purpose. In this case, the ADO must use the fair market value at the time it was first donated by an unrelated third party to a governmental or quasigovernmental organization. (2) The ADO must only include the cost of the land. Per 2 CFR § 200.434(b), only the value of the land can be used towards a sponsor’s matching share, so costs to acquire the land (title fees, attorney fees, appraisal fees, etc.) are not allowed. (3) If the value of the land exceeds the amount needed to cover the sponsor share, the ADO has the option to allow the sponsor to use the unused value for the sponsor share on future grants. In that case, the ADO must correctly describe the amount of land being included as sponsor share and the amount that is being set aside for future sponsor share. |
| b. Land Previously Acquired by the Sponsor | (1) For a public sponsor, the ADO must use the fair market value of the land at the time of purchase, not the current fair market value. (2) For a sponsor of a privately-owned airport, 49 USC § 47109(d) requires that the ADO use the current fair market value of the land at the time of the project. (3) The ADO must only include the cost of the land. Per 2 CFR § 200.434(b), only the value of the land can be used towards a sponsor’s matching share, so costs to acquire the land (title fees, attorney fees, appraisal fees, etc.) are not allowed. (4) If the value of the land exceeds the amount needed to cover the sponsor share, ADO has the option to allow the sponsor to use the unused value for the sponsor share on future grants. In that case, the ADO must correctly describe the amount of land being included as sponsor share and the amount that is being set aside for future sponsor share. |
| c. Labor, Materials, Equipment and Services Donated to the Sponsor | (1) The ADO must use the current fair market value of the donated labor, materials, equipment, and services at the time they are donated. (2) The ADO must determine the current market value of the donation by following the sponsor force account requirements provided in Paragraph 3-53. When applying the requirement in Paragraph 3-53, the ADO must simply substitute all references to the sponsor’s labor, materials, equipment, or services with the donated labor, materials, equipment, or services. |
| For the… | The following applies… |
|---|---|
| a. Donation Value (or Previously Acquired Land Value) Needed for the Grant | The ADO calculates this value using the following formula: = (Project Cost x Sponsor Share %) Federal Share % As the formula indicates, the calculated value is not a dollar to dollar credit against the sponsor share. If the state is participating, the sponsor share percent used above is the percent the sponsor would be paying (the non-federal share percent minus the state share percent). |
| b. Credit Remaining for Future Grants | The ADO calculates this using the following formula: = Land Value – Donation Value (or Previously Acquired Land Value) Applied to the Grant |
| c. Application Amount | The sponsor must use the following formula to calculate the amount they must show on the grant application: = Project Cost + Donation Value (or Previously Acquired Land Value) Applied to the Grant |
| d. Application Project Description | The sponsor must list the proposed project as the project to be accomplished under the grant. The sponsor must also show the previously purchased land or donated labor, materials, equipment and/or services as an item that will be used as a full or partial credit against the sponsor share. |
| e. Grant Amount | The ADO calculates this using the following formula: = Application Amount x Federal Share % |
| f. Maximum Obligation in Grant | The ADO shows the entire grant amount under the category of the project (example: $1,000,000 for airport development), not the category of the donated item. |
| g. Remaining Sponsor Share | The ADO calculates this using the following formula: = Application Amount – Federal Share Amount – Donation Value (or Previously Acquired Land Value) |
| h. Grant Description | The ADO must use the following format: [Insert Normal Grant Description] including a credit of $[Insert Value of Donation (or Value of Previously Acquired Land) Applied to the Grant] for the [Insert either complete or partial] sponsor share for the [Insert either complete or partial] [Insert donated if applicable] value of [Insert brief description of item being credited – include the parcel numbers for land]. |
| Examples Include… |
|---|
| EXAMPLE 1: Donated Land, No State Participation, Value of Land Exceeds Sponsor Share. A general aviation sponsor has a $1,000,000 runway extension project. A local businessman donated a piece of land to the sponsor five years previously, and the appraised fair market value at the time of donation was $2,000,000. All other requirements for the donation have been met. The non-federal share is 10%. In this case, the state is not contributing toward the non-federal share, therefore the sponsor share is 10%. Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % = 10% Donation Value Needed for this Grant = Project Cost x Sponsor Share % ÷ Federal Share % = $1,000,000 x 10% ÷ 90% = $111,112 Donation Value Remaining for Future Grants = Land Value – Donation Value Applied to the Grant = $2,000,000 – $111,112 = $1,888,888 Application Amount = Project Cost + Donation Value Applied to the Grant = $1,000,000 + $111,112 = $1,111,112 Application Project Description: The sponsor must list the runway extension as the project to be accomplished under the grant, and show the land as a donated item that will be used as a credit against the sponsor share. Grant Amount = Application Amount x Federal Share % = $1,111,112x 90% = $1,000,000 Maximum Obligation in Grant = $1,000,000 for airport development ($0 for land). Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $111,112 for the complete sponsor share for the partial donation value of Parcel 48. Participation Breakdown = The FAA contributes $1,000,000 and the sponsor virtually contributes $111,112 as a credit, which adds up to the $1,111,112 application amount. This allows the FAA to issue a grant for $1,000,000 to cover both the federal share of the project costs ($1,000,000 x 90% = $900,000) as well as the sponsor share ($1,000,000 x 10% = $100,000). |
| EXAMPLE 2: Previously Acquired Land, State Participation, Value of Land Exceeds Sponsor Share A general aviation sponsor has a $1,000,000 runway extension project. The sponsor used local funds to purchase a parcel of land, and the appraised fair market value at the time of acquisition was $2,000,000. All other requirements for previously acquired land have been met. The non-federal share is 5%. In this case, the state contributes half of the non-federal share, or 5% toward the non-federal share, therefore the sponsor share is also 5%. Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % =5% Land Value Needed for this Grant = Project Cost x Sponsor Share % ÷ Federal Share % = $1,000,000 x 5% ÷ 90% = $55,556 Land Value Remaining for Future Grants = Land Value – Land Value Applied to the Grant = $2,000,000 – $55,556 = $1,944,444 Application Amount = Project Cost + Land Value Applied to the Grant = $1,000,000 + $55,556 = $1,055,556 Application Project Description: The sponsor must list the runway extension as the project to be accomplished under the grant, and show the previously purchased land as an item that will be used as a credit against the sponsor share. Grant Amount = Application Amount x Federal Share % = $1,055,556 x 90% = $950,000 Maximum Obligation in Grant = $950,000 for airport development ($0 for land) Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $55,556 for the complete sponsor share for the partial value of Parcel 48. Participation Breakdown = The FAA contributes $950,000, the state contributes $50,000, and the sponsor virtually contributes $55,556 as a credit, which adds up to the $1,055,556 application amount. This allows the FAA to issue a grant for $950,000 to cover both the federal share of the project costs ($1,000,000 x 90% = $900,000) as well as the sponsor share ($1,000,000 x 5% = $50,000). |
| EXAMPLE 3: Donated Labor/Materials, No State Participation, Value Less than Sponsor Share A general aviation sponsor has a $1,000,000 runway extension project. A local businessman is willing to donate the sodding required for the project. The ADO approves the request and concurs with the donation value of $10,000. All other requirements for the donation have been met. The non-federal share is 10%. In this case, the state is not contributing toward the non-federal share, therefore the sponsor share is 10%. Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % = 10% Application Amount = Project Cost + Donation Value = $1,000,000 + $10,000 = $1,010,000 Application Project Description: The sponsor must list the runway extension as the project to be accomplished under the grant, and show the donated sodding as an item that will be used as a partial credit against the sponsor share. Grant Amount = Application Amount x Federal Share % = $1,010,000 x 90% = $909,000 Maximum Obligation in Grant = $909,000 airport development Remaining Sponsor Share = Application Amount – Federal Share Amount – Donation Value = $1,010,000 -$909,000-$10,000 = $91,000 Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $10,000 for the partial sponsor share for the complete donated value of required sodding. Participation Breakdown = The FAA contributes $909,000, the sponsor virtually contributes $10,000 as a credit, and the sponsor contributes $91,000 for the remaining sponsor share, which adds up to the $1,010,000 application amount. This allows the FAA to issue a grant for $909,000 to cover both the federal share of the project costs ($1,000,000 x 90% = $909,000) as well as a portion of the sponsor share ($10,000 x 90% = $9,000), leaving the sponsor to pay for the remaining $91,000 of the sponsor Share (($1,000,000 x 10%) -$9,000). |
4-13. Budget Augmentation (Combining Funds between Different Federal Programs).
Each Federal program is supported by appropriations, and the funding limits set out in the relevant legislation are the limits of that program. Combining Federal funding is considered improper budget augmentation unless specific authority is contained in the legislation to do so. The Handbook calls out those rare instances where legislative authority has been granted for budget augmentation within an AIP grant. These instances are included in Table 4-15.
More information on the rules regarding Federal budget augmentation is contained in the Government Accountability Office’s (GAO) Principles of Federal Appropriations Law, Third Edition, commonly referred to as the Red Book. APP-520 is also available for further guidance.
| Some examples Include… |
|---|
| a. Economic development agency and Appalachian regional commission grants, which have specific authority to give grants for local matching share of other federal programs. |
| b. Costs for instrument landing systems to be transferred to the FAA under appropriation statutes. |
| c. The incidental costs for clearing, grading and grubbing for an AIP project that may also provide site preparation for FAA facilities. |
Last updated: Tuesday, October 3, 2023