Key Issues in FAA Reauthorization in the 115th Congress

Key Issues in FAA Reauthorization in the 115th Congress

link to page 1

Updated May 3, 2018
Key Issues in FAA Reauthorization in the 115th Congress
Background
runways and taxiways. Commercial revenue-producing
Reauthorization of federal civil aviation programs,
facilities are generally not eligible for funding, nor are
including operations of the Federal Aviation Administration
operating costs. Approximately $3.2 billion of grants is
(FAA), has been a prominent issue in the 115th Congress.
distributed annually according to a formula that favors
Congress has passed a series of short-term measures,
smaller airports and on a discretionary basis per FAA
extending FAA aviation programs and aviation trust fund
selection criteria. Although the taxes that fund AIP are paid
authority through the end of FY2018. Long-term FAA
overwhelmingly by passengers using a relatively small
reauthorization bills are under consideration in both the
number of large hub airports, 58% of outlays go to airports
Senate (S. 1405) and the House (H.R. 4). In the House, a
that have little or no commercial traffic (Figure 1). Large
decision to set aside a controversial proposal to privatize air
commercial airports receive relatively small amounts from
traffic services cleared the path for passage of H.R. 4 on
AIP and rely mainly on other revenue sources, such as
April 27, 2018, and the bill now awaits consideration in the
locally imposed passenger facility charges.
Senate.
H.R. 4 would create a new supplemental funding
Aviation Funding
authorization for AIP discretionary funds from the general
Most FAA programs are financed through the Airport and
fund appropriations, starting in FY2019 with $1.02 billion
Airway Trust Fund (AATF). Since FY2009, the AATF has
and rising to $1.11 billion in FY2023. Funds would be
provided between 66.6% and 93% of FAA’s total annual
distributed at the discretion of FAA and could be used for
funding, with the remainder coming from general fund
airport planning and development and noise compatibility
appropriations. Taxes and fees on passenger transportation,
planning and programs at airports that are not designated as
including a 7.5% tax on tickets and a $4.20 per passenger
large hubs.
tax on each flight segment, provide about 70% of trust fund
revenue. Other revenue sources include taxes on air cargo,
Figure 1. Distribution of Airport Improvement Grants
aviation fuels, and international arrivals and departures.
AATF revenues have been adversely affected by the recent
trend among airlines to impose fees for a variety of add-on
services and amenities such as checked bags, onboard wi-fi
access, or seats with additional leg room. Generally, fees
not included in the base ticket price are not subject to the
federal excise taxes.
Financing Airport Improvements
The aviation system in the United States is the largest in the
world, encompassing more than 19,000 airports, of which

3,340 are eligible for federal funding. Nonetheless, air
Source: Data from FAA Airports Branch; FAA National Plan of
traffic is heavily concentrated at a comparatively small
Integrated Airport Systems (NPIAS) 2017-2021.
number of airports. Thirty large hubs account for 72% of all
NextGen
passenger enplanements, while the next tier of 31 medium
hubs handles another 15% of passengers.
Future aviation capacity expansion will largely come from
technology to allow more efficient routing and closer
The busiest of these hubs face chronic capacity constraints
spacing of aircraft in all weather conditions. This is being
that have cascading effects across the entire national
carried out under the NextGen program, which is gradually
airspace system. Over the past decade, several major
shifting air traffic control from ground-based radar and
airports have expanded their infrastructure, including new
radio navigation aids to more precise satellite-based
runways at Atlanta, Chicago O’Hare, and Philadelphia
navigation and aircraft tracking.
airports and more efficient taxiway configurations at Los
Angeles and Dallas-Fort Worth.
FAA has invested more than $5 billion in NextGen so far
and seeks annual appropriations of about $1 billion for the
The federal Airport Improvement Program (AIP), funded
next several years to implement the system. System users
by AATF, is normally reauthorized in FAA authorization
who must equip their aircraft for NextGen are particularly
acts. AIP provides grants to airports for construction of
concerned that FAA may not be able to deliver NextGen’s
improvements related to aircraft operations, such as
promised benefits in a timely fashion. Small general
https://crsreports.congress.gov

Key Issues in FAA Reauthorization in the 115th Congress
aviation operators have objected to being required to install
Contract Tower Program
avionics compatible with NextGen, arguing that this will
FAA contracts out operations at about half of all airport
bring them limited benefits while streamlining the airspace
control towers. The contract tower program, which was
system for commercial users. Airlines have likewise
initiated in 1982, has had broad bipartisan support over the
objected to equipage mandates. Funding uncertainties,
years. Advocates for air traffic control privatization point to
cumbersome procurement processes, and poor management
it as an example of delivering air traffic services at lower
have all been cited as factors slowing implementation of
cost without compromising safety. The program largely
NextGen, although, in August 2017, the Government
benefits general aviation airports that might otherwise not
Accountability Office (GAO) concluded that
have control tower staffing. Future advances in technology
implementation is largely proceeding as planned consistent
may, however, make staffed control towers less necessary.
with initial cost estimates. H.R. 4 includes language that
would require FAA to carry out a pilot study exploring the
Serving Rural Communities
use of preferential access to airports and airspace to
In stark contrast to the handful of busy airports that struggle
incentivize NextGen equipage.
to expand capacity, many smaller communities struggle to
retain the limited commercial passenger air service that they
Community Noise Concerns
have. The Essential Air Service (EAS) program provides
Changes in flight patterns intended to exploit NextGen
subsidized links with hub airports at over 170 airports that
capabilities to increase airport efficiency and capacity have,
otherwise would lack commercial air service.
in some cases, increased noise in residential communities,
triggering complaints. A provision in P.L. 112-95 directed
The subsidy has been controversial. Past legislation has
FAA to expedite the rollout of NextGen procedures and
significantly limited the eligibility of additional airports to
authorized FAA to streamline its environmental reviews of
receive EAS subsidies, but only a small number of airports
these changes. Around some airports, outcry from
already participating have been removed from the program.
communities that had not previously experienced extensive
Although Congress has set limits on the maximum per-
overflights prompted Congress to revisit this approach,
passenger cost of service to any airport and has required a
requiring FAA to more thoroughly examine potential
minimum number of enplanements, the Department of
community impacts of some of these actions and better
Transportation has repeatedly issued waivers to
engage local authorities and neighborhoods before
communities that were threatened with loss of EAS service.
implementing procedural changes to flight patterns (see
Funding, which comes from fees on flights between other
P.L. 114-328, §341). Additional provisions in H.R. 4 would
countries that use FAA’s air traffic control services as well
direct FAA to consider additional actions, including fanning
as from appropriations, has increased from $120 million in
and dispersing flights to avoid high concentrations of noise
FY2008 to $263 million in FY2017. H.R. 4 includes
over particular neighborhoods; use alternative metrics and
language requiring the U.S. Comptroller General to analyze
criteria to assess noise impacts; and sponsor research to
the impact of EAS reform options.
assess the potential health impacts of aircraft noise.
Airport Privatization
Safety Oversight
Almost all commercial service airports in the United States
Recent changes in FAA’s approach to safety oversight have
are owned by local, state, or federal governments, or by
raised concerns over whether the agency is appropriately
public airport authorities. In 1996, Congress established the
balancing efforts to promote a culture of safety and data
Airport Privatization Pilot Program to explore the prospect
sharing among airlines, repair stations, and other regulated
of privatizing publicly owned airports and using private
entities with its authority to carry out enforcement actions
capital to improve and develop them. In addition to
when safety violations occur. H.R. 4 would require GAO to
reducing demand for government funds, privatization has
study whether FAA’s shift in oversight philosophy is
been promoted as a way to make airports more efficient and
effective in keeping safety incidents and regulatory
financially viable.
compliance in check.
H.R. 4 would allow more airports to enter the pilot
H.R. 4 would also revamp FAA certification of
program. Two airports have completed the privatization
organizations that design aircraft and aircraft parts,
process to date, and one of them later reverted to public
modernize technical training for FAA safety personnel,
ownership. The limited interest in privatization has
improve the consistency of regulatory interpretations and
numerous causes. Among them are the ability of publicly
actions, require fuel system upgrades in all newly built
owned airports to issue tax-exempt debt, a federal
helicopters, lift restrictions on FAA’s authority to regulate
prohibition on the use of privatization proceeds for non-
lithium battery shipments, and impose medical certification
airport purposes, and the potential implications for major
requirements on commercial hot air balloon pilots. H.R. 4
stakeholders.
would strengthen FAA’s authority over unmanned aircraft,
including hobby drones, and would direct it to expedite
Bart Elias, Specialist in Aviation Policy
rules to permit drone package delivery.
Rachel Y. Tang, Analyst in Transportation and Industry
IF10621
https://crsreports.congress.gov

Key Issues in FAA Reauthorization in the 115th Congress

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10621 · VERSION 7 · UPDATED