Airport leaders tell House subcommittee federal airport funding and PFC cap leave major projects short
Get AI-powered insights, summaries, and transcripts
SubscribeSummary
Airport executives told a House subcommittee that recent increases to the federal airport program help but do not close a large funding gap, and that the $4.50 passenger facility charge cap—unchanged for about 25 years—has limited local airports' ability to finance critical projects.
Airport executives told a House Transportation and Infrastructure subcommittee hearing that while Congress boosted formula funding in the FAA Reauthorization Act of 2024, federal grants alone cannot cover the nation’s airport capital needs and the decade‑old $4.50 passenger facility charge cap has lost purchasing power.
Michael Langeth, president and CEO of the Raleigh‑Durham Airport Authority, and Larry Crowder, CEO of Cincinnati/Northern Kentucky International Airport (CVG), urged Congress to consider supplemental appropriations and changes to local funding tools so airports can complete runway, terminal and baggage projects without multi‑year phasing that raises costs and disrupts operations.
Why it matters: Airports testified that the programmatic increase to AIP to $4 billion annually helps but falls far short of industry estimates of total need. Witnesses said the shortfall forces more borrowing, phases projects over many years and reduces the ability to add gates or modernize baggage systems that support passenger and cargo operations.
Executives and committee members provided figures and examples. Crowder said CVG’s top priority, a Concourse A passenger ramp rehabilitation, carries a $90 million price tag, with $67.5 million he described as AIP‑eligible; he said FAA guidance would fund only about 60% of the project even if phased. "The FAA has still indicated that the amount of entitlement and discretionary funds available for this project are only sufficient to fund 60% of the total project cost," Crowder said during questioning.
Langeth described how stagnating PFC purchasing power has affected RDU. "The federal cap on the PFC hasn't been updated in nearly 25 years," he said in his opening testimony. He said RDU has spent tens of millions on temporary runway repairs while awaiting permitting and funding for a permanent replacement, and urged Congress to consider modernizing the PFC cap or giving airports flexibility to set user fees locally.
Witnesses proposed multiple responses: supplemental appropriations targeted to AIP, expansion or uncapping of the PFC, extension of excise taxes to airline ancillary fees, and continuation or expansion of programs that allowed discretionary terminal funding under the Bipartisan Infrastructure Law. Crowder recommended an initial supplemental AIP appropriation of $975 million with phased increases over four years to close shortfalls he said affect projects nationwide.
Committee members also pressed witnesses to quantify tradeoffs. Representatives noted that phasing projects increases cost and can create safety or operational disadvantages compared with performing larger, contiguous construction work. Crowder and Langeth both told the subcommittee that fragmented funding and lengthy FAA approval processes lengthen project schedules and raise costs.
The witnesses urged more aggressive oversight of FAA implementation of the 2024 law and clearer timelines for agency decisions. "This moment calls for true partnership by empowering local communities to decide on what targeted investments they need to make," Langeth said in his prepared remarks.
Outlook: Subcommittee members signaled interest in possible legislative remedies, including revisiting the PFC cap and pushing for supplemental appropriations and streamlined FAA processes to move projects forward more quickly.
