July-August_2021 - 12

LEGAL MATTERS
AUTHOR Alison Squiccimarro
WHAT ARE FEDERAL
GRANT ASSURANCES AND
How Do They
Impact Our
Nation's Airports?
PRESENTLY, THERE are approximately 2,800 federally
obligated airports in the United States. On May 13,
2021, the FAA announced the award of more than
$898.9 million in infrastructure and safety projects to be
distributed this year through the Airport Improvement
Program ( " AIP " ). These grants include 488 grants to 447
airports in 49 states and three U.S. territories.
Over the last 75 years, the FAA has
issued more than 89,000 grants totaling
$96 billion. The receipt of these grants
does not come without obligations and
those obligations have significant impact
on the airports that receive the grants.
This article will give a brief overview of
those obligations and the impact that it
has on our country's airports.
The Federal Aviation Administration
( " FAA " ) administers the AIP and other
ABOUT THE AUTHOR
ALISON SQUICCIMARRO
Alison L. Squiccimarro is an attorney with the
Law Offices of Paul A. Lange, LLC with offices in
New York and Connecticut. Alison's nationwide
practice focuses on aviation related commercial
litigation with an emphasis on FAA and DOT
Regulatory Issues, Airports, Insurance Coverage
and Employment matters. Additionally, Alison
co-chair's the American Bar Association, Forum
on Air & Space Law's Airports Committee.
grants issued under predecessor programs
including the Federal Air to Airports
Program and the Airport Development
Aid Program. AIP grant monies can
be used for airport planning, airport
development, noise compatibility projects
and planning. The funds received through
these programs benefit airports around
the nation. In exchange for receiving AIP
funds the airport must agree to comply
with federal grant assurances. These grant
assurances remain consistent and include
such obligations as: (1) maintaining good
title to the airport (Grant Assurance 4);
(2) preserving rights and powers to
control and operate the airport (Grant
Assurance 5); (3) requirements relating
to operation and maintenance of the
airport (Grant Assurance 19); (4) hazard
removal and mitigation (Grant Assurance
20); (5) provision of facilities for air traffic
control and weather (Grant Assurance 28);
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(6) maintaining an Airport Layout Plan
approved by the FAA (Grant Assurance
29); (7) requirements that the airport be
available on reasonable terms without
unjust discrimination (Grant Assurance
22); (8) prohibition against exclusive rights
(Grant Assurance 23); (9) maintaining a
fee and rental structure that makes the
airport as self-sustaining as possible (Grant
Assurance 24); and (10) restrictions on the
use of airport revenue (Grant Assurance
25). The FAA may also attach additional
obligations intended to address or remedy
a specific situation at an airport. The
grant assurances are designed to protect
the Federal Government's investment at
specific airports and further protect the
public's interest in civil aviation. These
grant assurances are set forth in the
application for grant monies and become
binding on the airport when it accepts
federal funds for airport development.
Generally, the obligations remain
in effect throughout the useful life of
the improvements constructed with
the grant monies not to exceed twenty
years. In the case of privately owned
airports that receive federal funds, the
useful life cannot be less than 10 years.
" The useful life of a federally funded
airport development project extends
for the period of time during which it
July-August_2021

Table of Contents for the Digital Edition of July-August_2021
