The House of Representatives voted June 15 to increase significantly the federal investment in the nation"s airports and aviation system over the next five years, sending the bipartisan $57 billion investment plan, known as "AIR-21", to the Senate for their review and consideration.

With the House action on aviation investment sending a strong signal to their Senate counterparts, Senate leaders are still committed to taking up a committee-approved bill, which simply extends federal aviation programs through next year.

In discussing the need for the legislation (H.R. 1000) during House debate, House Transportation and Infrastructure Committee Chairman Bud Shuster (PA) said, "This is an historic moment in the House because we are considering legislation which will have a major impact on the future of nearly American in the years to come. Make no mistake about it, our aviation system in America today is hurdling toward gridlock and potential catastrophes in the sky."

Explaining the central premise of the legislation, and that is to guarantee that federal aviation taxes are spent on aviation needs, Shuster said, "The solution is to unlock the Aviation Trust Fund. By doing so, we can have $14.3 billion in the next 5 years to be spent to improve aviation, and indeed that is only money that is going into the Aviation Trust Fund paid for by the American traveling public in their ticket tax." The panel leader also explained that this investment in the aviation system could be accomplished without increasing taxes, or taking money away from other federal programs.

Representative James Oberstar, the Ranking Democratic Member on the Committee, told his House colleagues that "The debate today is not about arcane budget rules. It is about the very future of America and our leadership in the world economy. Every nation of the world looks to America as the leader in aviation in every aspect of aviation, in air traffic control technology, in runway construction. In the economic and commercial application of aviation, we are the world leader."

Shuster, Oberstar and other proponents of the legislation cited numerous examples of why increased investment in the nation"s aviation system is needed. Shuster said, "Since airline deregulation from 230 million passengers flying commercially in America each year to 600 million last year to 660 million projected for this year. In the first decade of the next century, we will have over a billion, with a "B", people flying in America." He also pointed out that "In the past 10 years, we have had a 74 percent increase in air cargo and it is increasing at even a steeper rate today."

Oberstar reminded his House colleagues that over one-half of all passengers in the world fly over U.S. airspace. Oberstar also said, "We are falling short of airport capacity needs by $3 billion a year."

Key Amendments Defeated

Among the key challenges to "AIR-21" legislation were offered by Representatives C.W. Bill Young (FL) and Lindsey Graham (SC). Under the Young amendment, "AIR-21" provisions that "guaranteed" future spending and moved the Aviation Trust Fund off budget would have been eliminated. This amendment, which would have dismantled the main thrust of the legislation (i.e. match revenues with program spending levels) was defeated 248-179.

Rep. Graham"s amendment would have eliminated provisions of AIR-21 granting airports new authority to increase Passenger Facility Charges (PFC) from the current level of $3 per passenger (total of $6 on a one-way ticket) to $6 per passenger (total of $12 on a round-trip ticket). The Graham amendment failed on a 183-245 vote.

An effort by Rep. Henry Hyde (IL) to strike the bill"s provisions repealing slot restrictions used at O"Hare, LaGuardia and Kennedy airports and allowing for slot increases at Reagan National Airport was defeated on a voice vote. Rep. Jim Moran (VA) failed in his effort to require high-density airports to implement a program to mitigate aviation noise at airports that increase air service.

Both amendments would have dismantled key features of the AIR-21 legislation, which the Conference strongly supports.

House approval of the AIR-21 legislation is another milestone in Chairman Shuster"s continuing and longstanding campaign -- backed by broad bipartisan support in the House Transportation and Infrastructure -- to increase investment in the nation"s infrastructure through legislative measures which ensure that dedicated federal fees and other tax revenues collected from the users are reinvested in these systems. His bipartisan efforts on the "AIR-21" legislation to increase aviation investment is following the path of his Committee-sponsored "TEA-21" that became law one year ago and unlocked the Highway and Transit Trust Funds for increased investment in the nation"s surface transportation systems.

Features of Legislation

AIR-21, the common name for the "Aviation Investment and Reform Act for the 21st Century" (H.R. 1000), increases the overall spending commitments to airport investment and to other activities of the Federal Aviation Administration (FAA).

The bill phases in future funding commitments to these aviation programs, beginning October 1, 2000 (FY 2001), and provides for a total funding commitment of $57.4 billion during Fiscal Years 2001-2004, increasing federal aviation investment to an average of about $14.3 billion annually. This compares to spending in this fiscal year of $9.75 billion.

Under AIR-21, the key program for local airport investment, called the AIP program, will secure average annual funding of about $4.2 billion, a level which more than doubles current funding of $1.95 billion. For the nation"s primary airports (i.e. those serving 10,000 or more passengers per year), entitlement grants would rise to $1.56 billion in FY 2001, up from the current level of $520 million, resulting in a tripling of entitlement grants to primary airports. In addition, AIP entitlement grants to cargo airports would more than double.

For smaller airports, the bill would also triple funding commitments to these airports, with provisions that guarantee minimum funding to non-hub airports at $1.5 million, up from $500,000. AIR-21 also provides, for the first time, AIP funding to general aviation airports.

Airports are granted more authority to increase Passenger Facility Charges (PFCs), allowing up to $6 per passenger per airport (capped at $12 for a one-way ticket; capped at $24 for a round-trip ticket). Under AIR-21, this new PFC authority is conditioned upon a showing to the U.S. Department of Transportation by an individual airport seeking to increase its PFC that AIP funds are insufficient to meet their capital needs.

FAA Programs Boosted

AIR-21 also ensures that the Federal Aviation Administration (FAA) will have the resources to hire and retain key personnel (i.e. air traffic controllers, maintenance technicians and safety inspectors). The legislation also increases funding commitments to FAA"s facilities and equipment program by 50 percent, helping ensure that resources are available to modernize the nation"s air traffic control system.

Funding for FAA"s operating budget rises from the current level of $5.57 billion to $7.86 billion in FY 2004, while funding for FAA"s facilities and equipment program rises from $2.01 billion to $3.0 billion beginning in FY 2002.