The Airport Improvement Program (AIP) provides grants to airport sponsors for capital improvement projects related to airport safety, capacity, and security. H.R. 468 would expand the definition of eligible AIP project costs for future grants to include contractor incentive payments, under certain conditions. The payments would be capped at the lesser of $1 million or 5 percent of the project’s contract value. H.R. 468 would not provide additional contract authority (a mandatory form of budget authority) for the AIP or increase the program’s existing obligation limitations.
Using information from the Federal Aviation Administration (FAA), CBO expects that the FAA would need to develop guidelines and amend grant language in order to implement the bill’s provisions. CBO estimates that the cost to do so would not be significant and would be subject to the availability of appropriated funds.