Regulatory Alert: FAA Announces Deadlines for Use of FY25 AIP Entitlement Funds
FAA Announces Deadlines for Use of FY25 AIP Entitlement Funds
December 11, 2024
Today, the Federal Aviation Administration (FAA) announced the deadlines for submitting 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 2025 (FY25).
FAA has set a deadline of April 1, 2025, for each airport to provide FAA with a NOI to use FY25 AIP entitlement funds, which must include the total amount the sponsor intends to use for eligible and justified projects. In addition, FAA has set April 28, 2025, for each airport to submit a final grant application to use FY25 entitlement funds based on bids, not estimates. Absent a notice, FAA will carry over the available entitlement funds on May 26, 2025, and will not make them available again until the beginning of FY26.
There are several key points to keep in mind regarding the notice today:
- Status of FY25 DOT/FAA Spending Bill: In September, Congress approved a continuing resolution (CR) that extended federal funding through December 20, and it is expected that Congress will further extend funding into next year. In 2025, AAAE’s primary focus will be to ensure that the final funding package for FY25 includes the airport wins we’ve been successful in gaining as part of the pending House and Senate DOT/FAA funding bills. Both versions address a number of identified airport priorities, including $4 billion for AIP—$650 million more than the FY24 enacted level and the same amount that Congress authorized in the FAA Reauthorization Act of 2024.
- AIP Entitlement Formula Changes: Under the FAA reauthorization law passed earlier this year, Congress made a number of changes to the formulas that are used for calculating AIP entitlement amounts for FY25 through FY28. We have summarized those changes in our comprehensive summary and overview of the FAA reauthorization law, which you can view here. It is important to note that formula changes made by the law apply to FY25 AIP entitlement amounts, regardless of the funding level that Congress ultimately approves in its final FY25 DOT/FAA spending bill. Thus, airports should be able to calculate and estimate the amount they will receive. Nonetheless, AAAE and ACI-NA have urged FAA to communicate with airports how the formula changes affect, if at all, their annual AIP entitlement amount.
- Communication with FAA Regional Office (RO)/Airports District Office (ADO): We understand that FAA RO/ADOs should be able to provide some information to airports about expected entitlement funding levels to assist the airport for planning purposes. We encourage airports to work with their local FAA offices to understand expected funding amounts and to 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.
