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Legislative bills

Senate Appropriations Committee Approves FY26 Transportation Spending Bill with $4 Billion for Airport Improvement Program

Strategic Insights

— 2 min read

The Senate Appropriations Committee has approved a Fiscal Year 2026 transportation spending bill with a vote of 27 to 1, including $4 billion for the Airport Improvement Program. The funding will support modernization of air traffic control systems, improve airports, and fund various FAA programs. The committee action comes as lawmakers aim to pass the annual spending bills before the September 30 deadline. The House Appropriations Committee previously approved its version of the FY26 DOT/FAA funding bill.

Key Takeaways:

  • The Senate bill includes $22 billion for the FAA, a $1.4 billion increase from the current level, with $13.8 billion allocated for FAA operations.
  • The measure includes $5 billion for FAA facilities and equipment, matching the president's budget request, to implement NextGen technologies and address facility, radar, and equipment repair and replacement projects.
  • The Airport Improvement Program will receive $4 billion in funding, with an additional $25 million in discretionary supplemental AIP funding and $25 million for a new discretionary rural airport grant program.
  • The Essential Air Service Program will receive approximately $514 million in discretionary funds, with an overall funding level of about $688 million in FY26.
  • The Senate bill includes approximately $279 million for the FAA Contract Tower Program, funding all 265 contract towers and allowing for the addition of other airports to the program.
  • Senator John Hoeven's proposal for airborne situational awareness technology in contract towers has been included in the report, with the FAA directed to move forward expeditiously with the technology.
  • The bill includes $2 million for an independent study on the airspace in the National Capital Region and the coordination between the FAA and Department of Defense.

Statistics:

  • $4 billion for the Airport Improvement Program
  • $22 billion for the FAA, a $1.4 billion increase from the current level
  • $13.8 billion for FAA operations
  • $5 billion for FAA facilities and equipment
  • $290 million for research, engineering, and development, $125 million more than the administration requested
  • $4 billion for the Airport Improvement Program, with an additional $25 million in discretionary supplemental AIP funding and $25 million for a new discretionary rural airport grant program
  • Approximately $514 million in discretionary funds for the Essential Air Service Program
  • Approximately $279 million for the FAA Contract Tower Program

Sources:

  • American Association of Airport Executives (AAAE)
  • Press release from Senate Appropriations Committee Chair Susan Collins (R-ME)
  • Appropriations Committee Vice Chair Patty Murray (D-WA) summary
  • Press release from Vice Chair Murray
  • Report from Senator John Hoeven (R-ND)

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