AAAE: House Appropriations Committee Unveils FY 2019 DOT/FAA Spending Bill

In advance of consideration tomorrow afternoon by a key subcommittee, the House Appropriations Committee has just released its proposed Fiscal Year 2019 spending bill for the Department of Transportation and its component agencies, including the Federal Aviation Administration. The measure proposes $17.7 billion overall for FAA, including an additional $500 million for the Airport Improvement Program and $168 million for the Contract Tower Program and Contract Tower Cost-Share Program.

The committee notes that the proposed bill includes a $542 million increase for the Department of Transportation next year. It also points out that "the allocation reflects the second year of the bipartisan budget agreement, and again targets resources to rebuild our nation's infrastructure, including airports, roads, bridges, and rail."

The Subcommittee on Transportation, Housing and Urban Development, and Related Agencies is scheduled to mark up the legislation tomorrow afternoon at 5 p.m. The House Appropriations Committee will likely consider the measure next week. Action on the Senate version of the FY 2019 DOT/FAA spending bill is expected in early June.

Key items of the House FY 2019 DOT/FAA spending bill include:

AIP Funding: The FY19 DOT spending bill contains an additional $500 million in AIP funds that the FAA would be required to distribute to airports as discretionary grants. The supplemental AIP funding would remain available for the FAA to distribute through September 30, 2021.

The new House proposal is somewhat similar to the additional $1 billion in AIP funds contained in the FY18 omnibus spending bill, which Congress passed in late March. But there are some key differences: For instance, the FY18 omnibus bill requires DOT to give "priority consideration" to certain nonprimary, nonhub, and small hub airports. The House version of the FY19 DOT spending bill does not include that same "priority consideration" language.

The FY19 House bill proposes that not less than $3.5 million of the $500 million "shall be made available to provide reimbursement to airport sponsors that do not provide gateway operations and businesses located at those airports during a temporary flight restriction for any residence of the President..." Like the FY18 omnibus spending bill, the proposed federal share for projects at nonprimary airports would be 100 percent.

The House draft also proposes $3.35 billion for the traditional AIP account in FY19. Of the $3.35 billion made available for AIP, $112.6 million is designated for administration of the program, $15 million is provided for the Airport Cooperative Research Program, and approximately $33.194 million would go to Airport Technology Research. The measure continues the prohibition against the use of AIP funds for "the replacement of baggage conveyor systems, reconfiguration of terminal baggage areas, or other airport improvements that are necessary to install bulk explosive detection systems."

Cost Free Space: The House draft includes a AAAE-backed proposal that would continue to prohibit the FAA from requiring airports to provide space free of charge in airport-owned buildings.

Facilities and Equipment: The House bill proposes $3.25 billion for FAA facilities and equipment, including critical NextGen programs.

FAA Operations: The House bill proposes $10.411 billion for FAA operations, $9.595 billion of which would come from the Airport and Airway Trust Fund.

Research, Engineering, and Development: The House measure includes $180 million for research, engineering, and development.

Contract Towers: The House bill includes $168 million in dedicated funding for the Contract Tower and Contract Tower Cost Share Programs - $3 million more than the current level.

Essential Air Service: The House bill would appropriate $175 million for the Essential Air Service Program - $20 million above the current funding level. Like the FY18 omnibus spending bill, the House bill would waive the 15-passenger seat requirement. It would also prevent DOT from entering into new a new contract for EAS communities that are located less than 40 miles from a small hub airport unless the community comes up with a local cost share.

Small Community Air Service Development: As is typically the case, the House bill does not include funding for the Small Community Air Service Development Program. The Senate version of the DOT/FAA spending bill traditionally does include funding for the program.

Airport Cooperative Research Program: As mentioned above, the House bill includes $15 million in AIP funding for the Airport Cooperative Research Program.

Contract Weather Observers: The bill would continue to block the FAA from eliminating the Contact Weather Observers program at any airport.

We will have further details for you on the House and Senate FY 2019 DOT/FAA spending bills as they become available.