Airport Alert: House Passes FY26 Funding Bills for DOT/FAA and Other Departments
February 3, 2026
After narrowly clearing a procedural hurdle, the House of Representatives on, a vote of 217 to 214, has just passed a consolidated appropriations measure that provides funding through September for DOT/FAA as well as the Departments of Defense, State, Labor, Education, Housing, and others covered by five of the final six FY26 funding bills. The measure provides funding for DHS and its component agencies, including TSA and CBP, through February 13.
House passage follows approval by the Senate last week (see Alert) and sends the package to the President for his signature into law. Approval of the measure leaves funding for DHS in question beyond February 13 but ensures the rest of the federal government is funded through the fiscal year that ends on October 1. As we have reported, the DHS spending bill was pulled out of a broader package of final FY26 appropriations measures over concerns about the actions of ICE and CBP. Lawmakers and the White House now have less than two weeks to try and reach some agreement on immigration enforcement tactics and pass either a final FY26 DHS spending bill or a further continuing resolution. Failure could result in another shutdown affecting DHS, TSA, and CBP.
As we have reported, the FY26 DOT/FAA spending bill that was approved by the House today and the Senate last week, as part of the broader package, includes good news on airport priorities. As noted in more detail below, the measure includes $4 billion for the traditional AIP account and slightly more than $577.4 million for supplemental AIP funding with $542.4 million of that amount reserved for earmarks. We appreciate the help of our Federal Affairs members and airports in achieving these positive results.
While the path forward on the FY26 DHS spending bill is now unclear, the underlying measure also included good news for airports that are now in jeopardy. As we reported earlier (see Alert for details), the measure calls for restoring funding for TSA to staff exit lanes, LEO reimbursement grants, and the canine program. It also largely rejected the administration’s proposed reductions to TSA screener staffing levels. Enactment of these changes will require Congress to pass the underlying, full-year FY26 DHS spending bill, which seems unlikely at the moment.
Stay tuned for further updates on the status of DHS/TSA/CBP funding, and thank you again for your engagement on the FY26 appropriations process.
Key Details of FY26 DOT/FAA Spending Bill
Funding for FAA Programs
FAA: The final FY26 DOT/FAA funding bill includes $22.2 billion for the FAA, which is $1.2 billion above the current level.
Operations: It includes $13.7 billion for FAA operations, an amount that will allow the FAA to “hire 2,500 new air traffic controllers and an additional 54 aviation safety inspectors.” As a side note, another $140 million was proposed in the now stalled DHS spending bill "to provide Air Traffic Controllers with a pay raise to help combat chronic staffing shortages, reduce fatigue-related risks, and ensure the continued safety and efficiency of our national airspace."
Facilities and Equipment: The final FY26 DOT/FAA spending bill includes a total of $4 billion for FAA facilities and equipment, which is $823.7 million above the current level.
Research, Engineering, and Development: The bill includes $290 million for research, engineering, and development - $10 million above the current level. Of the total amount, $40 million is reserved for aviation workforce development programs.
Airport Improvement Program
Traditional AIP Funding: The final bill includes the fully authorized $4 billion for the traditional AIP account in FY26. Of that amount, $160 million is for administration expenses, $15 million is for the Airport Cooperative Research Program, and $15 million is for the Small Community Air Service Development Program. Another $41.8 million is reserved for Airport Technology Research. Of that amount $6 million is for the airfield technology program with $3 million for concrete pavement research and $3 million for asphalt pavement research.
Supplemental AIP Funding/Earmarks/Rural Airport Grant Program: The bill includes an additional $577.4 million for supplemental AIP grants. Of that amount, $542.4 million is reserved for earmarks, known as “Community Project Funding” or “Congressionally Directed Spending.” Another $35 million is for discretionary grants with $20 million of that amount slated for “a new discretionary rural airport grant program that targets those airports who have typically received a smaller amount of entitlement money based on their annual AIP formula amounts.”
Funding to Help Airports Transition to Fluorine-Free Firefighting Foam: Despite our efforts and support in the House, the bill does not include funding to help airports transition to fluorine-free firefighting foam. The FAA bill authorized a total of $350 million over five years to help airports transition to fluorine-free firefighting foam.
Continued EDS Prohibition: The bill continues the prohibition against using 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.”
Contract Tower Program
Contract Towers: The bill includes $279.2 million for the FAA Contract Tower Program – $23.2 million more than the current level. That proposed increase would fund all 266 contract towers currently in the program and allow the FAA to add other airports to the program during FY26. Funding in the bill represents more than a $100 million increase for the program since FY22.
Transition Program: The bill includes $6 million to convert high activity contract towers to FAA staffed towers. The agreement also directs the FAA “to commence this program within 180 days of enactment of this act and to prioritize contract towers as required under section 625(a)(2) of the FAA Reauthorization Act of 2024.” The FAA bill included language that directs the FAA to establish a pilot program to convert certain contract towers at airports with high numbers of annual enplanements or operations.
Other Small Community Programs
Small Community Air Service Development: As mentioned above, the bill includes $15 million for the Small Community Air Service Development Program -- $10 million above the current level and $15 million more than the administration requested.
Essential Air Service: The final bill includes $513.6 million in discretionary funding for the Essential Air Service Program. Coupled with an estimated $173.9 million from overflight fees, the overall funding level for EAS would rise to $687.5 million in FY26.
Miscellaneous
Cost Free Space: The final bill 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.
Airport Cooperative Research Program: As mentioned above, the final bill includes $15 million in AIP funding for the Airport Cooperative Research Program.
Flight 5342: The final bill includes $2 million for an independent study on the airspace in the National Capital Region and the coordination between the FAA and Department of Defense.
UAS Research: The final measure includes $10 million for UAS research and an additional $14 million for the UAS Center of Excellence.
