Regulatory Alert: FAA Announces Deadlines for Use of FY26 AIP Entitlement Funds

Today, the Federal Aviation Administration (FAA) announced the deadlines for airport sponsors to submit a notice of intent (NOI) and final grant application for the use of primary, cargo, and nonprimary entitlement funds that are available under the Airport Improvement Program (AIP) for fiscal year 2026 (FY26). FAA’s notification regarding the deadlines will be published in the Federal Register on Monday, December 8. However, you can view a pre-publication version of the notice here.

The FAA has set a deadline of February 27, 2026, for each airport sponsor to notify the agency of its intent to use FY26 AIP entitlement funds, which must include the total amount planned for eligible projects during FY26 and confirmation of which projects listed in its Capital Improvement Plan for FY26 will proceed. In the absence of the notice, the FAA will carry over any undeclared entitlement funds after February 27, 2026, and will not make them available again to the sponsor until FY27.

In addition, the FAA has set May 1, 2026, for each airport sponsor to submit a final grant application to use FY26 entitlement funds. The application should be based on construction bids or negotiated agreements; however, the FAA noted that it “may be based on estimates.” The agency indicated that final bid dates should be coordinated with the sponsor’s local Regional Airports Division (RO) or Airports District Office (ADO) to ensure grants can be issued based on bids.

We encourage airport sponsors to work with their local FAA offices to understand expected entitlement funding amounts, complete pre-grant requirements, and inform the agency, as soon as possible and before the deadline, whether they plan to use those funds. This allows FAA to more quickly administer the program in the fiscal year, plan for discretionary grants, and announce grant awards as early as possible. The deadlines will be especially important this grant cycle, which is the first full cycle since the FAA Office of Airports lost a meaningful amount of staff.