Over $1 billion in recently enacted economic stimulus funding has been earmarked for scores of runway and other infrastructure projects at both large and small U.S. airports in all fifty states.

The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Barak Obama on February 17, an effort to jump start the U.S. economy and create or save millions of jobs. Inasmuch as transportation is seen as a great enabler of economic growth, the Obama Administration is investing in local jobs to expand airport capacity and make safety improvements.

Greg Principato, president of Airports Council International- North America (ACI-NA), praised the airport provisions in the measure, stating, "the stimulus package will allow airports to move forward with much needed infrastructure projects while putting tens of thousands of people across the country to work."

The final bill includes the following provisions for airports:

• $1.1 billion in Airport Improvement Program (AIP) funding with a requirement that up to 50 percent of the funds be obligated within 120 days (June 17) and the rest within a year. The bill waives a local funding match requirement.

• $1 billion to accelerate procurement and installation of baggage screening and checkpoint security equipment at airports.

• $200 million for airport facilities and equipment to improve power systems, air traffic control centers, control towers and navigation and landing equipment.

• A two-year exemption for airport private activity bonds (PABs) from the Alternative Minimum Tax (AMT) including the refinancing of bonds issued within the past five years under the exemptions.

About 3,400 U.S. airports are eligible to receive ARRA funds. With a mandate to spend the money quickly, the Federal Aviation Administration (FAA) has pushed ahead to qualify the airport projects and mail out the checks. The funding is being distributed based on a project priority system that addresses airport safety and security, infrastructure, runway safety, increased capacity, and mitigation of environmental impacts.

Department of Transportation Secretary Ray LaHood said the Obama Administration is committed to getting ARRA money into the economy as quickly as possible, noting that President Obama signed the ARRA into law less than one month after taking the oath of office.

The projects range from relatively small airport apron or taxiway repairs that could be done soon to more costly runway repairs and terminal work. The grants are targeted at quick-start projects, such as runway resurfacing, that were not already in the FAA’s AIP funding pipeline and priority was given to work that can be completed in two years. Purchase of new safety/rescue vehicles and runway lighting/signage are also approved for federal funding infusions.

Airport projects making the cut include a modest $84,000 terminal building facelift in Waterloo, Iowa, a $4.2 million runway improvement job in Omaha, Nebraska and a $15 million apron rehab at Baltimore-Washington International.

Pittsburgh International and Allegheny County Airport received the first funding allocations for airport infrastructure projects.

The FAA will allocate $10 million to Pittsburgh International to repair Runway 14-32, one of four commercial service runways. The project includes grading, paving, marking signs, and lighting upgrades to the runway. The $2 million allocation for Allegheny County, a general aviation airport, will renovate a taxiway and relocate a ramp.

The FAA earmarked more than $28 million for Arizona airports, including a $10.5 million grant for taxiway rehabilitation at Phoenix Sky Harbor International.

The FAA grant to Phoenix Sky Harbor International will pay for improvements to Taxiway C, a major taxiway on the airport’s north side. The project includes replacing asphalt with more durable concrete, as well as installing new pavement marking, lighting and signs.

Other airports in Arizona receiving ARRA funding include:

• Tucson International Airport will receive $1.85 million for installing new security equipment.
• Sierra Vista Municipal Airport in, Sierra Vista, will receive $6 million to rehabilitate Runway 12/30.
• Kingman Airport in Kingman will receive $5 million to rehabilitate aircraft parking aprons.
• Taylor Municipal Airport in Taylor will receive $3.5 million to rehabilitate a runway.
• Avi Suquilla Airport in Parker, will receive $1.8 million to rehabilitate two taxiways.

Speaking last week at the FAA Forecast Conference, LaHood said the ARRA funding is designed to help end the deep economic recession.

“The American Recovery and Reinvestment Act is going to help us get there. It’s a terrific boost for aviation. The Act includes $200 million dollars to upgrade aviation facilities and equipment and keep our air traffic control centers operating smoothly.

“These efforts range from power systems and batteries, to navigation and landing equipment. They’re critical to modernizing and upgrading functionality and safety.

We’re moving all these funds out the door as quickly as possible,” he added.

But the ARRA won’t bankroll all U.S. aviation modernization efforts.

A coalition of industry stakeholders had argued that $4 billion should have been included in the make-work measure to equip aircraft and accelerate NextGen efforts, including $2 billion specifically for ADS-B.

There is a precedent for helping pilots equip their aircraft with ADS-B avionics. The FAA purchased ADS-B gear for operators in Alaska as part of Capstone Initiative, providing a base of properly equipped aircraft and allowing the FAA to examine the costs and benefits of the new technology.

But Congress did not provide funding for aircraft equipage in the ARRA and incentivizing operators to equip will remain an important issue in the debate about how to move forward with NextGen.

Stakeholders have suggested that incentives should take a number of forms, including: purchasing equipment for operators, an investment tax credit, an adjustment to current excise taxes for equipped aircraft, or research and development tax credits specifically for avionics manufacturers.

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