Congress on Friday approved a $789 billion economic stimulus package that provides significant benefits for airports.
• The measure calls for $1.1 billion in discretionary AIP funding and stipulates that projects funded by the bill are to be supported by a 100 percent federal contribution. Priority is to be given to projects that demonstrate an ability to be completed within two years and serve to "supplement and not supplant planned expenditures from airport-generated revenues or from other state and local resources." The plan calls for FAA to distribute 50 percent of the funds with 120 days and the remainder within a year. A proposed requirement that airports obligate that funding within 90 days was eliminated.
• The plan also includes broadened language providing relief from the Alternative Minimum Tax (AMT) penalty for airport private activity bonds. In addition to providing AMT relief for airport private activity bonds issued in 2009 and 2010, the measure allows airports to current refund bonds issued in the past five years that are callable in 2009 and 2010. AAAE has been urging Congress to eliminate the AMT penalty on airport private activity bonds, allow airports to current refund their existing debt and make those changes permanent.
• The measure provides $1 billion for explosives detection system (EDS) purchase and installation and checkpoint upgrades. TSA is to prioritize funding based on risk to "accelerate the installation at locations with completed design plans." The measure requires TSA to provide an expenditure plan to Congress within 45 days.
• The package provides $200 million in supplemental funding for FAA facilities and equipment. Of those funds, $50 million is designated to upgrade FAA power systems; $50 million is for modernizing enroute air traffic centers; $80 million is to replace air traffic control towers and Tracons; and $20 million is to install airport lighting, navigation and landing equipment.
