House Panel's FAA Proposal Boosts Airport Grants, Avoids Fee Increase

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DALLAS – Federal airport grants would increase while the passenger facility charge would stay at its current level under a proposed six-year reauthorization of the Federal Aviation Administration approved late Wednesday by the House Transportation & Infrastructure Committee.

The committee passed the bill, 32-26, after a day-long hearing.

"The committee considered approximately 75 amendments during today's meeting, and more than half of them were approved," Shuster said Wednesday night. "I look forward to moving ahead."

 

Shuster's 270-page proposal, H.R. 4441, would provide $21.7 billion through 2022 for the FAA's Airport Improvement Program grants, which help finance runways, taxiways and other aviation infrastructure.

The grants would begin at $3.4 billion in fiscal 2017 and reach a peak of $3.8 billion in 2022. The FAA program is funded at $3.35 billion in fiscal 2016, the same as last year.

The reauthorization proposal would leave the federal passenger facility fee capped at the $4.50 per trip segment set in 2000.

President Obama's proposed fiscal 2017 budget would raise the PFC cap to $8 per trip segment, and cut the FAA airport grant program to $2.9 billion while providing more funding for smaller airports.

The current $4.50 PFC is expected to bring in $3 billion in fiscal 2016. Raising the fee to $8 would generate an additional $2.4 billion. Commercial airports can levy a PFC of up to $4.50 per trip segment, which is collected by the airlines.

Almost 100 amendments to the reauthorization bill by committee members were on Thursday's agenda.

The six-year bill would provide $17 billion per year to the FAA during the first three years while the private air traffic control system is being set up and $11 billion per year for the final three years.

Paul Rinaldi, president of the National Air Traffic Controllers Association, told committee members on Wednesday that the union supports the Shuster proposal.

"A stable, predictable funding stream must adequately support air traffic control services, long-term modernization projects, preventative maintenance, and ongoing modernization to the physical infrastructure," he said. "Inadequate funding prevents modernization projects from timely implementation."

Two aviation advocacy groups said they will ask lawmakers include an $8 PFC cap in the FAA legislation when it reaches the House floor.

Todd Hauptli, president of the American Association of Airport Executives, and Kevin Burke, president of Airports Council International-North America, said a higher PFC is the best way to fund airport infrastructure.

"We are underinvesting in airports in this country by more than $3 billion annually according to the FAA, and the proposal misses a significant opportunity to tackle the real challenge of aging airport infrastructure," they said in a joint statement.

"As the FAA reauthorization process continues, AAAE and ACI-NA will continue to urge Congress to adjust the federal cap on local PFCs so that airports can do their part to meet the infrastructure needs of our national aviation system," Hauptli and Burke said.

The Government Accounting Office said last year that 74% of current and future PFC revenues dedicated to airport debt service.

Advocacy group Airlines for America, which represents most U.S. airlines, said the higher PFC cap and President Obama's proposal for a $10 tax on a barrel of oil would increase federal taxes on airlines and passengers by $7.9 billion per year from the current $22.6 billion per year.

Federal taxes on a $300 airline ticket now total $63, it said.

"If the Administration's proposed budget were passed, it would increase the federal tax amount to nearly $80, or 26.5% of the ticket price," the group said.

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