Title 49 › Subtitle SUBTITLE VII— - AVIATION PROGRAMS › Part PART B— - AIRPORT DEVELOPMENT AND NOISE › Chapter CHAPTER 471— - AIRPORT DEVELOPMENT › Subchapter SUBCHAPTER I— - AIRPORT IMPROVEMENT › § 47110
The federal government will pay a project cost only if the Secretary of Transportation says it is allowable. Allowable costs must be needed to carry out the project under the grant agreement. That includes costs for required audits and for moving a federal facility if the replacement is the same size and type. Small incentive payments to contractors for early completion are allowed if they do not exceed the lesser of 5 percent of the original construction contract or $1,000,000, if the contractor’s control of the worksite does not hurt airport operations, if the contract covers unforeseeable non-weather delays, if the airport operator keeps responsibility for safety and operations, and if the Secretary finds the incentive will likely improve capacity, efficiency, or save money by shortening the project. Costs are allowable when they are reasonable, not already covered by other federal aid, and do not make the Government pay more than the maximum stated in the grant. Certain development and planning costs after a grant is signed are allowed. Under specific rules, some costs done before a grant is signed can be allowed: costs after September 30, 1996 tied to certain fund sources, and costs in the same fiscal year as grant signing if weather shortens the construction season and other conditions are met. The incremental cost to add low-emission technology to airport-owned vehicles is allowed as the Secretary decides. Energy-efficiency or “green” measures for eligible airport buildings are allowed if they are part of an airport development project and any higher up-front cost is justified by life-cycle savings. The Secretary can also allow pre-grant work like surveys, plans, land interests, utility moves, and site preparation when those items are necessary to the project. The Secretary may approve costs to relocate airport-owned facilities only if the funds come from certain apportionments, the move is required by a change in design standards, and the change was beyond the airport sponsor’s control. The Secretary can issue letters of intent that say the Government plans to obligate future funds up to the Government’s share and will reimburse sponsors on a schedule as money becomes available. Letters can be issued for primary, reliever, nonhub, and nonprimary airports under different rules and limits; a nonhub letter cannot promise more than the greater of the Government’s share or $10,000,000. A letter is not a binding government obligation until funds are actually appropriated. Letters must meet project requirements, and sponsors must notify the Secretary before work begins. Projects paid under some pre-grant rules do not get extra priority for discretionary funds. Costs that are not allowable include building public parking for cars, changing or repairing parts of airport buildings except for safety-related uses, decorative landscaping, and art or sculpture. The FAA Administrator must set up, within 120 days, a pilot at up to two large hub airports to allow one-time waivers for repairing or replacing old residential sound insulation that was federally funded, but only if strict tests are met about past installation dates (before 2002), noise levels (residence in DNL 65–75 then, current interior over DNL 45), damage or deterioration, and airport size and local population thresholds. Applicants must first try warranties, insurance, or legal remedies, and the Secretary may allow airports to survey previously insulated properties to find eligible ones.
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Transportation — Source: USLM XML via OLRC
Legislative History
Reference
Citation
49 U.S.C. § 47110
Title 49 — Transportation
Last Updated
Apr 6, 2026
Release point: 119-73