Yes, under certain circumstances. 

For any AIG grant issued to nonhub or nonprimary Sponsors during FYs 2025 or 2026, the Federal Share has changed from 90% to 95%. This change effectively reduces the amount a Sponsor is required to match for a grant. It does not increase the funding provided by FAA.  

Any grant amendments through FYs 2025 and 2026 that increase AIP funding without adding project scope will continue to be subject to the initial 90% federal cost share. If there are any significant changes in project scope or new/amended capitals, then the new federal share will apply as the grant scope is changing. 

For AFR FY 2026, Sponsors can request 95% of the total eligible project costs in their applications. 

ATP and FCT Federal Share remain unchanged at 95%.
 

FAA interprets 49 U.S.C. 47128, State Block Grant Program, as giving direction to provide each State Block Grant participating state program administration responsibilities for grants issued under IIJA. This interpretation is consistent with our long-standing practice. For airports covered under the FAA’s SBGP, the FAA will issue block grants to states designated for projects at specific locations. IIJA funds are location specific, similar to AIP discretionary funding. When projects are ready to move forward, location-specific funding will be awarded based on IIJA availability and actual construction bids or negotiated agreement.

Yes. FAA has provided each of the ten State Block Grant Participating States with funds to support IIJA program administration. Such funding is provided annually and will continue through FY 2026. The parameters regarding the State Block Grant Participating State duties and allowable costs for related program administration are defined in each FY Cooperative Agreement.

Yes. The state can charge for project administrative costs that are directly related to administering the eligible project (many are normally done by a consultant or other hired company) such as application preparation, contract management, engineering oversight, bidding, etc. IIJA programs, like AIP, are subject to the requirements of 2 CFR Part 200. See the AIP Handbook for further detail on how FAA applies these requirements in the airport development grant context.

IIJA grants administered under the State Block Grant Program (SBGP) have environmental compliance responsibilities similar to those in AIP. Specific requirements are detailed within each state’s SBGP Memorandum of Agreement (MOA). The MOA template is posted on FAA.gov.

The FAA sent guidance out to states and sponsors early in CY 2022, with specific instructions to start updating state Capital Improvement Program (CIP) submissions.  This information will be used by FAA to update our NPIAS, as well as our three year Airports Capital Improvement Program (ACIP).  State Block Grant states should incorporate the additional AIG specific project into the state’s CIPs.  Contact your local ADO for additional details.

The state’s application process will mirror the AIP discretionary application process. This includes ensuring projects are shown in state’s CIP, the project is on the airport’s approved ALP, and submittal of the SF-424, Application for Federal Assistance and other documents as required. See Q-A1. When projects are ready to move forward, location-specific funding will be granted based on IIJA availability and actual construction bids or negotiated agreements.

AIG  funds under IIJA include AIG Allocated, FCT, and AFR funds. Allowable use of AIG funds is as follows: 

1. AIG Allocated: An airport sponsor may use these funds for airport-related projects defined under 49 U.S.C. §40117(a)(3). AIG Allocated funds cannot be used to pay for debt service. The FAA has used the guidance in the AIP Handbook, as well as Program Guidance Letters (PGLs), as components of PFC eligibility determination under section 40117. The FAA Reauthorization Act of 2024 may establish additional eligible costs. See Q-R3. 
    
2. FCT: An airport sponsor may use these funds to sustain, construct, repair, improve, rehabilitate, modernize, replace, or relocate a non-approach FCT ATCT, and to acquire and install air traffic control, communications, and related equipment to be used in those ATCT.  (For further information on ATCT construction, see Table O-3 Other Building Project Requirement (Other than Terminal), Item h, in the AIP Handbook). For further information on the process to initiate a new tower or a replacement tower project, see FAA Order JO 7210.78 FAA Contract Tower (FCT) New Start and Replacement Tower Process. A current list of eligible equipment is found in Appendix A of Reauthorization Program Guidance Letter (R-PGL) 19-02: Planning and Project Eligibility (the reference in the AIP Handbook is outdated and has been superseded by the R-PGL). The FAA Reauthorization Act of 2024 could create additional eligible costs. See Q-R3.  FCT funds can also be used to construct a remote tower certified by the FAA, including acquisition and installation of air traffic control, communications, or related equipment. To date, there is no FAA certified remote tower technology. FCT funds cannot be used to pay for debt service.
    
3. AFR: An airport sponsor may use these funds on eligible projects that reduce airport emissions, reduce noise impact to the surrounding community, reduce dependence on the electrical grid, or provide general benefits to the surrounding community. More information about the specific types of eligible projects will be included in the NOFO. 

ATP grants under IIJA are awarded competitively and can be used for justified terminal development projects as defined under 49 U.S.C. 47102(28), including multi-modal projects. On-airport rail access projects, as outlined in 86 FR 48793 (PFC Update 75-21), are also eligible. Finally, projects for relocating, reconstructing, repairing, or improving a sponsor-owned ATCT, either staffed by FAA or in the FCT program, are also eligible.

IIJA grants will adhere to Standard Airport Sponsor Assurances, which  require airports to meet standards and specifications approved by the FAA, unless a Modification to Standards has been approved by FAA.

Standard Airport Sponsor Assurances, will apply to IIJA grants. The grant assurances apply for the useful life of the facilities developed or equipment acquired under the grant, except for exclusive rights, airport revenue, and civil rights, which are perpetual. There is no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with IIJA funds.

Yes. See section 3-12 of the AIP Handbook on minimum useful life.

No. 49 U.S.C. 40117(a)(3) is referenced in the legislation with respect to project eligibility. IIJA funds are Federal funds from the General Treasury, which require a sponsor match. They are not like PFC funds, which are considered local funds.

Yes. Projects must be included in an approved PFC application. The review and approval of a new application, if one is needed due to an amendment of an approved application, takes a significant amount of time from notification to carriers and the public, to start of PFC collection. Work with your local ADO/RO for additional information. 

Yes. Sponsors must submit an amendment to an approved PFC, which decreases the total collection authority or deletes an approved project, before submitting for payment under a IIJA grant. Sponsors should consult with their local ADO/RO if considering changes to an approved PFC application.

No. The legislation does not allow funds to be used for debt service, including the financing cost of bonding.

No. Title 49 U.S.C. §47115(d) identifies the requirements for a BCA for certain AIP discretionary projects. Section 47115(d) is not referenced in  IIJA; therefore, BCAs are not required. Also, a BCA is not required for the installation of weather reporting equipment (AWOS-III or better). Other controls are in place to ensure projects are justified and reasonable.

No. IIJA grants cannot include future year allocations. Allocations may change annually. See U-32 and U-33.

No. AIP and IIJA funds come from different sources and cannot be integrated into a single grant.

Yes, the standard is four years, unless otherwise adjusted in the grant agreement.