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1 1 (February 24, 2022)

handle is hein.crs/govefhx0001 and id is 1 raw text is: ACongressional a Research Service Infrastructure Investment and Jobs Act (IIJA) and Airport Funding February 24, 2022 The Infrastructure Investment and Jobs Act (IIJA, also referred to as the bipartisan infrastructure law; P.L. 117-58), enacted on November 15, 2021, appropriated $25 billion over a five-year period (FY2022-2026) for airport and air traffic control projects. This aviation funding includes $15 billion in grants for airport infrastructure projects that increase safety and expand capacity; $5 billion in competitive grants for airport terminals including replacing aging terminals and airport-owned control towers; and $5 billion to improve the physical condition of Federal Aviation Administration (FAA) air traffic control facilities. The entirety of the $25 billion in the IIJA specified for civil aviation derives from the Treasury general fund. This departs from the usual practice of funding civil aviation infrastructure in the United States largely from user taxes and fees. In addition, the IIJA provides money for aviation purposes that previously were not eligible to receive federal funding. Since 1970, the Airport and Airway Trust Fund (AATF) has been the primary funding source for all maj or FAA accounts that fund federal aviation programs-Operations and Maintenance (O&M), Airport Improvement Program (AIP), and Facilities and Equipment (F&E)-with a small portion of FAA O&M funding supplemented by general fund appropriations. AATF revenue comes from a variety of excise taxes paid by users of the national airspace system, including airline passenger ticket taxes, segment fees, air cargo fees, and fuel taxes paid by both commercial and general aviation aircraft. Taxes and fees related to passenger transportation have accounted for the majority of trust fund revenue. Additionally, federal law authorizes commercial airports to impose a local Passenger Facility Charge (PFC) on each boarding passenger, with a maximum of $4.50 per flight segment, capped at $9 one-way or a total of $18 per round trip flight. PFCs may be used to fund a broad range of airport infrastructure projects, including landside projects that are ineligible for AIP funding, such as passenger terminals and on-airport rail systems. The decrease in air travel as a consequence of the COVID-19 pandemic has had considerable effects on the amount of funds available for civil aviation infrastructure and activities. For example, FAA reported that airports had collected a total of $1.69 billion from PFCs in 2020, 46% of the amount collected in the last pre-pandemic year, 2019. Congressional Research Service https://crsreports.congress.gov IN11864 CRS INSIGHT Prepared for Members and Committees of Congress

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