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ACC Legislative News

House Approves Stimulus Bill; Senate Proposal Under Consideration

An e-mail supplement to AirportConsulting, ACC's quarterly magazine
Prepared by T.J. Schulz, ACC Vice President

House Approves Stimulus Bill; Senate Proposal Under Consideration

The House approved its $819 billion economic stimulus bill (H.R. 1) last week by a 244-188 vote, shifting the focus to the Senate chamber. The Senate measure includes $1.3 billion in aviation funding, well below the $3 billion provided under the House bill. The Senate bill also includes $1.2 billion for the procurement and installation of checked baggage and checkpoint explosion detection equipment.

The Senate is now considering its economic stimulus bill on the Senate floor, and numerous amendments are pending. House and Senate leadership have a goal of passing a final stimulus measure by February 13, 2009.

Below is a quick breakdown of the key components of the Senate and House measures. Keep in mind that the Senate bill is subject to change as it is considered on the Senate floor, and that the bill will not be final until the House/Senate conference is complete.


Airport Funding:

Senate Bill:      $1.1 billion

House Bill:       $3.0 billion

Time Frame for Spending:

Senate Bill: The USDOT Secretary is to give priority to projects that can be completed within two years of enactment of the stimulus bill.

House Bill: An amendment was approved on the House floor that shortens the 120 day deadline in the original draft House bill to 90 days. However, there is much confusion regarding the time frames set in the House bill. One interpretation is that within 90 days of the bill's passage, FAA will have to award 100 percent of the stimulus funding in grants to airports. Then airports would have 90 days to enter into contracts to make use of over 50 percent of the grants. The timing issue will have to be decided during the House/Senate conference, but in the meantime you may want to advise your airports to position themselves to be able to award contracts in as timely a manner as possible.

FAA Facilities and Equipment

Senate Bill: Proposes $200 million for power systems, air route traffic control centers, air traffic control towers, terminal radar approach control facilities, and navigation and landing equipment.

House Bill: No funding.

Local Match

Senate Bill: Provides 100 percent federal share.

House Bill: Requires local AIP matching funds.

AMT Repeal

Senate Bill: Provides a two-year repeal of the Alternative Minimum Tax (AMT) on interest on private activity bonds, but only for new financial transactions.

House Bill: Same.

TSA Funding

Senate Bill: Provides $1.2 billion to remain available until Sept. 30, 2010 for procurement and installation of checked baggage explosive detection systems and checkpoint explosive detection equipment.

House Bill: Includes $500 million for the Transportation Security Administration (TSA) for the purchase and installation of explosive detection systems and emerging checkpoint technologies.

A copy of the Senate bill's spending proposal can be found here

The Senate committee "report" on the bill which explains the provisions in narrative form, which can be found here: