Regulatory Alert: DOT Releases NOFO for FY24 Small Community Air Service Development Program Grants

March 20, 2026

Today, the U.S. Department of Transportation (DOT) released the notice of funding opportunity (NOFO) that outlines how communities can apply for a share of up to $12 million in fiscal year 2024 (FY24) discretionary funds under the Small Community Air Service Development Program (SCASDP), which was created to address air service and airfare issues in small communities. The deadline for applying is May 4, 2026, at 4:00 p.m. EDT.

The SCASDP was created in 2000 as a financial assistance program to help small communities enhance their air service. The program has been subsequently reauthorized by Congress on several occasions, including most recently through the FAA Reauthorization Act of 2024. DOT’s NOFO, or solicitation order, provides details on what types of airports and projects are eligible for a grant. The following includes key takeaways from the NOFO:

Eligible Applicants: Only public entities (individually or as part of a consortium) may apply for and serve as the legal sponsor of a grant. Three other primary limitations apply: (1) the airport serving the community may not be larger than a small hub airport; (2) a community may only have one SCASDP grant at a time; and (3) a community may not receive a new grant to support the same project more than once in a 5-year period.

Cost Sharing/Matching: Cost sharing or matching is not required for applications. However, DOT indicated that applications providing for multiple levels of contributions (state and/or local cash and/or in-kind contributions) will be viewed more favorably.

Eligible Projects: DOT may award grants to communities that seek to provide assistance to (a) a U.S. air carrier to subsidize service to and from an underserved airport for a period not to exceed 3 years; (b) an underserved airport, or an airport where air service has been terminated or substantially reduced, to obtain service to and from the underserved airport; and/or (c) an underserved airport to implement such other measures as the DOT Secretary considers appropriate to improve air service. Examples of projects eligible for funding are outlined in the NOFO.

Essential Air Service Communities: Small communities currently receiving subsidized air service under the Essential Air Service (EAS), or Alternative EAS program, will not be considered eligible for these grants.

For complete details about airport and project eligibility, as well as the application process, please review the DOT’s grant opportunity announcement and NOFO.