PFC and the AIP

Central Regional Airports Division

The following information addresses the relationship and differences between the PFC program and the AIP program.

Projects Funded By PFC and AIP

  • Public agencies are authorized to use PFC revenue as a matching local share of an AIP project
  • While PFC revenue can be used to pay debt service, Sponsors can not use AIP funds to address finance cost or debt service
  • Large and Medium airports that impose a PFC charge may incur a reduction in AIP apportionments. Refer to Chapter 5 of FAA Order 5500.1 for additional information
  • Whenever PFC revenue, in any amount, are commingled with an AIP funded project, the Federal statutory and regulatory requirements of the AIP applies to all funds within the project.
  • The FAA review and approval actions for Construction Safety and Phasing Plans (CSPPs) are the same as that required for projects funded entirely with AIP funds.

Projects Funded Solely by PFC Revenue

  • Projects must meet one or more of the objectives of Part 158.15(a). Specifically, the project must
    1. Preserve or enhance safety, security or capacity of the national air transportation system;
    2. Reduce noise or mitigate noise impacts that result from the airport; or
    3. Furnish opportunities for enhanced competition between or among air carriers.
  • Additional requirements exists for imposition of PFC's above $3.00.
  • Airfield projects within the Airport Operations Area (AOA) require the Sponsor to prepare a CSPP per AC 150/5370-2. FAA actions for CSPP of PFC funded projects are the same as that for non-Federally funded projects.
  • Projects funded solely by PFC revenues are not subject to the same Federal Statutory and Regulatory provisions of an AIP funded project. Specifically, the following requirements would not apply to project funded solely by PFC:
    • Davis Bacon Act
    • Disadvantaged Business Enterprise
    • Buy American Preferences
  • Qualification-Based Selections - Although 49 CFR Part 18.36 (Procurement) does not apply to PFC funded projects, the FAA encourages Public Agencies to consider using a qualification based selection process when acquiring professional services.


If you require additional information regarding application of a PFC within the FAA Central Region, please contact the Central Region PFC Specialist.


Last updated: Tuesday, August 2, 2022