FAA request for benefit-cost analysis stalls Michigan City runway-extension funding push

The Michigan City Board of Aviation Commissioners was told June 18 that a planned runway-extension project with associated temporary road and storm-sewer work faces a federal hold while the Federal Aviation Administration considers whether a benefit-cost analysis (BCA) is required.

Paul Laker, the airport’s consulting engineer, told commissioners the state and regional funding documents show roughly $7.5 million estimated for the runway project in 2027, but that the FAA has paused support and may ask for a BCA "anytime they want." He said the office has drafted three BCAs — "rosy, moderate and worst case" — and that all three show positive results.

Why it matters: the FAA’s request has put federal participation on hold and the project cannot move to major engineering and contract work until federal approvals are restored. Laker said the pause means more legislative outreach and targeted engagement with FAA decision-makers will be necessary to "get them moving again."

Laker outlined the local case: the project addresses safety concerns where a state highway runs through the runway protection zone and provides engineering work needed before spending the projected federal allocation. He said the runway extension component was a relatively small portion of the total safety-focused expenditures.

The board discussed next steps, including presenting the three BCA scenarios to the FAA and to legislators to demonstrate the project's benefit. Laker said the office would present the BCAs and ask the FAA to proceed on the basis of the analysis that best supports the airport’s application.

The board did not take a formal vote on the runway project during the meeting; Laker said staff will continue outreach and return with the BCAs and a recommended approach for re-engagement with the FAA and state legislators.