FAA Shutdown?

Without an extension of the current Federal Aviation Administration (FAA) authorization set to expire on September 30, airport construction projects could face delays.

In addition to the threat of a government shutdown (see AGC guidance), the current Federal Aviation Administration (FAA) authorization also expires on September 30. AGC and other industry stakeholders called on Congress to pass an extension to ensure that there is not a lapse in funding. It remains to be determined whether Congress will continue to try to attach an FAA extension with a continuing resolution (CR) to fund the government, or if there is no path forward on a CR, instead let the extension pass on its own.

If there is a lapse in the FAA authorization, in addition to a government shutdown, then there could be delays to airport construction projects. In the event of a government shutdown AND an FAA authorization lapse, Infrastructure Investment and Jobs Act (IIJA) funded projects would continue.

However, AIP projects funded by an FAA authorization and NOT funded by the IIJA would be stopped.

In addition, passenger facility charge approvals by the FAA would also cease (for more information click here).

In short, if there is a lapse in the FAA authorization, it will depend how the airport project is being funded. In that case, it is important to communicate with the project sponsor to know what is expected. The good news? There appears to be broad bipartisan support for passing a temporary extension of the FAA authorization.

For more information, contact Alex Etchen at [email protected] or Deniz Mustafa at [email protected].

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