Q-R1. Did the 2024 FAA Reauthorization impact how AIG allocations are calculated?
Yes. The 2024 FAA Reauthorization made changes to both primary and cargo allocations. Beginning with FY25, “the best-of-three” provision is no longer in effect and the minimum primary allocation was increased from $1 million to $1.3 million. In addition, the threshold cargo weight was reduced from 100 million to 25 million pounds of cargo while increasing the allocation of primary funding from 3.5% to 4.0%.