# 2026-22450: FAA Updates Rules for Airport Improvement Fees and Projects

2026-22450, Update and Clarification of the Passenger Facility Charge Regulations, is a Federal Register proposed rule from Transportation Department, Federal Aviation Administration published 2026-11-04, effective Send comments on or before January 4, 2027.; PRIA reads it as touching household money (as of 2026-11-04).

- Canonical: https://policyrisk.com/federal-register/2026-22450
- As of: 2026-11-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-22450
- Title: Update and Clarification of the Passenger Facility Charge Regulations
- Type: Proposed Rule
- Agencies: Transportation Department; Federal Aviation Administration
- Citation: 91 FR 69511
- Published: 2026-11-04
- Effective: Send comments on or before January 4, 2027.
- Comments close: 2027-01-04
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: 2120-AL86
- Last updated: 2026-11-04

## In one line

FAA Updates Rules for Airport Improvement Fees and Projects

## Summary

The FAA is updating rules about Passenger Facility Charges (PFCs), which are fees airports charge to improve facilities. These changes affect airports and airlines by adding new project options, tightening rules on eligible projects, and speeding up review times. The updates follow new laws from 2024 and aim to make the PFC process clearer and more efficient, with comments open until January 4, 2027.

## Abstract

On September 27, 2023 FAA published a notice of proposed rulemaking (NPRM) to amend its Passenger Facility Charge (PFC) regulations to implement congressionally mandated changes to an existing pilot program within the PFC program. FAA also proposed to reaffirm existing program requirements and update or remove obsolete references within the PFC regulations. Following publication of the NPRM and before FAA issued a final rule, the FAA Reauthorization Act of 2024 (the 2024 Act) was signed into law on May 16, 2024. Several sections of the 2024 Act necessitate changes to PFC regulations or modifications to proposals made in the NPRM. As such, FAA now issues this supplemental proposal addressing: PFC turnback reductions; two new PFC-eligible projects; restrictions to PFC-eligible projects; FAA's timeline for review and acknowledgement of notice of intent (NOI) submissions; PFC streamlining review eligibility; and PFC submittal requirements. This proposal aligns with the requirements established by the 2024 Act.

## Effects PRIA read

- Less AIP Turnback for Hub Airports: benefit, medium. The rule would change how much Airport Improvement Program (AIP) apportionment medium- and large-hub airports must return. Airports collecting PFCs at $3.00 or less would return 40% (down from 50%), and those collecting above $3.00 would return 60% (down from 75%). Also, a small-hub airport that be…
- Noise Barriers Now PFC-Eligible at Small Hubs: benefit, medium. The 2024 Act makes noise barrier projects at small-hub airports eligible for Passenger Facility Charge (PFC) funding when the day-night average sound level (DNL) from airport operations is expected to exceed 55 decibels as a result of new airport development. This change adds noise-mitigation proje…
- Federal Workspace Replacement Eligible for PFCs: benefit, low. PFCs may now be used for replacing existing workspace elements (including in-kind facilities or equipment) that need to be relocated because a terminal development or renovation project forced a Federal agency to move on airport grounds. FAA proposes to add this project type as PFC-eligible.
- Low-Emission Vehicle Projects Eligible at Any Airport: benefit, low. The rule removes the requirement that certain low-emission airport projects be located in air quality nonattainment or maintenance areas. Projects converting vehicles or ground support equipment from diesel/gasoline to low-emission technology, or acquiring low-emission vehicles/equipment, remain PF…
- No PFC Collections Until FAA's 60-Day Review: mixed, medium. FAA proposes to align the statutory 60‑day review/objection period for Notices of Intent (NOIs) with the period before an eligible agency may begin collecting PFCs. Under the proposal, an agency may not begin collecting PFCs until 60 days after submitting an NOI unless FAA has no objection. This is…
- More Projects Protected From Streamlining Objections: benefit, medium. The 2024 Act and this proposal specify that FAA may not object to including an eligible airport-related project in the PFC streamlining process if the project received Federal financial assistance and the combined Federal grant and PFC collections (including interest/returns) do not exceed the proj…
- FAA Can Object If Project Has No Aeronautical Purpose: cost, low. FAA proposes to adopt a definition of 'no aeronautical purpose' and may object to PFC streamlining for projects that do not directly relate to safe/efficient aircraft operations or to movement of passengers and baggage. Examples include decorative landscaping, sculptures, works of art, cell phone w…
- Simpler ALP Submission Rules for Some Projects: benefit, low. FAA proposes that for projects that are required to be shown on an Airport Layout Plan (ALP) but do not require FAA review and approval, public agencies must submit a description and a drawing showing the project's location (rather than a full FAA-approved ALP). For projects that do require FAA rev…
- Streamlined NOI Review Shortened to 60 Days for Hubs: benefit, medium. FAA would continue treating certain PFC notices of intent (NOIs) from approximately 138 small-, medium-, and large-hub airports under the streamlined review process, shortening FAA's review/acknowledgement period to 60 days (versus 120 days under the traditional application process). This continues…

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## Sources
- [2026-22450 on federalregister.gov](https://www.federalregister.gov/documents/2026/11/04/2026-22450/update-and-clarification-of-the-passenger-facility-charge-regulations)
- [2026-22450 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-11-04/pdf/2026-22450.pdf)

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Source: PRIA, https://policyrisk.com/federal-register/2026-22450 (as of 2026-11-04).
