Grant Assurance Compliance

I. Introduction

The federal airport grant assurances program is a regulatory framework established by 49 U.S.C. § 47107 and FAA Order 5190.6B that governs U.S. airport operations and finance. The 39 grant assurances constitute statutory conditions codified in 49 U.S.C. § 47107 and FAA Order 5190.6B that airport sponsors must meet to receive federal Airport Improvement Program (AIP) funding and to maintain eligibility for future federal support. These assurances directly influence airport governance through requirements affecting financial management, operational standards, and land use policies.

For airport finance professionals, legal counsel, airport executives, and governing boards, 49 U.S.C. § 47107 conditions federal funding eligibility on grant assurances compliance. Violations can result in suspension of AIP eligibility under 49 U.S.C. § 47107(b), subject to FAA enforcement procedures in 14 CFR Part 16. Documented FAA Part 16 dockets from 2020–2025 record specific outcomes including corrective action orders and formal adjudication, with violation categories detailed in Appendix C. The Federal Aviation Administration (FAA), through its Airports Division and Regional Offices, maintains enforcement authority under 14 CFR Part 16 and has pursued violations in documented cases from 2020–2025.

This reference guide provides airport finance and operations professionals with analysis of all 39 grant assurances as listed in the FAA Grant Assurances Document (April 2025 update), the statutory framework underlying them, FAA enforcement mechanisms, documented compliance issues from FAA Part 16 dockets (2020–2025), examples of documented compliance programs, and FAA-recommended practices for maintaining compliance. The guide synthesizes federal law, FAA orders and policy, administrative law principles, recent enforcement decisions, and expert practices to create a resource summarizing the regulatory environment involving multiple statutes, as detailed in Appendix A.

Grant assurances vary in character depending on the type of federal grant received. Per FAA Grant Assurances Document (April 2025 update), land grants (including federally-owned land leased for airport purposes) create perpetual assurance obligations. Development grants impose 20-year assurance periods (standard for most AIP grants per FAA policy), with 'rolling' obligations when new grants are received. Planning grants and terminal development grants have their own specific assurance frameworks. Airports may evaluate which assurances apply for long-term airport planning and financial forecasting.

This guide covers the historical development of grant assurances from their origins in the Federal Airport Act of 1946 through the 39-assurance framework under the FAA Reauthorization Act of 2024; examination of each major assurance category; FAA compliance monitoring and enforcement procedures; formal Part 16 complaint processes; the intersection of grant assurances with airport finance, including airline use agreements, revenue bonds, and credit ratings; and documented compliance programs for maintaining compliance with all 39 grant assurances as defined by FAA Order 5190.6B.

Airport sponsors receiving AIP funding are subject to statutory obligations under 49 U.S.C. § 47107(b) that bind successors, as affirmed in FAA Part 16 dockets (2020–2025). This permanence, combined with the FAA's enforcement authority as defined in 14 CFR Part 16 and FAA Order 5190.6B, creates ongoing compliance obligations for airport management.

II. Historical Development of Grant Assurances

A. The Federal Airport Act of 1946

The Federal Airport Act of 1946 (60 Stat. 170) marked the beginning of federal investment in airport infrastructure through federal assistance. This statute recognized that civil aviation required facilities meeting operational standards and that communities historically lacked resources to develop airport infrastructure without federal assistance. The 1946 Act established the principle that federal funding for airports would not come without conditions—airport sponsors receiving federal funds had to agree to use those facilities in ways consistent with federal policy objectives.

Early grant conditions under the 1946 Act were limited to requirements such as public access and nondiscrimination, as compared to the 39-assurance framework in effect as of 2026 (FAA Grant Assurances Document, April 2025): airports receiving federal funds had to remain open to the public (not be exclusive facilities), could not discriminate against users on the basis of aircraft type or size, and had to maintain the facility in operational condition. These obligations persist in current grant assurances.

B. The Airport and Airway Development Act of 1970

The Airport and Airway Development Act of 1970 (84 Stat. 219) expanded the federal airport program by increasing funding mechanisms and modernizing grant conditions. This Act, responding to a 42% increase in U.S. enplanements between 1965–1970 (FAA Historical Statistics, Table 1) at major airports, created expanded federal funding with AIP authorizations increased from $100 million in FY1971 to $300 million in FY1975 (FAA AIP Historical Data, Appendix A) under the 1970 Act (see Appendix A for statutory history) and correspondingly expanded the conditions sponsors had to meet to access these funds.

The 1970 Act introduced grant assurances addressing specific operational and financial matters, including rate justification (49 U.S.C. § 40117), revenue restrictions, and facilities maintenance (49 U.S.C. § 47107). Sponsors had to assure that airports would remain open to the public, that rates as defined under 49 U.S.C. Section 40117 (requiring justification based on cost allocation) would not be excessive, that revenues would be used for airport purposes, and that the airport would maintain equipment and facilities in serviceable condition. The 1970 Act also introduced the concept that grant assurances would run with the property—extending obligations beyond the grant agreement itself.

This Act marked a shift toward recognizing that federal investment created federal interests in airport facilities that persist beyond the grant period (49 U.S.C. § 47107(b)) in airport facilities. The statutory language made clear that federal conditions would persist, effective October 3, 2025 for DBE-and-acdbe-program-changes">A. 2024 DBE and ACDBE Program Changes

The Department of Transportation issued a final rule on March 11, 2024 (89 FR 17757) amending the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs. The rule amended but did not remove the race- and sex-based presumptions of disadvantage that have governed these programs since 1987. As of April 2025, 100% of large-hub airports maintain DBE/ACDBE programs in compliance with 49 CFR Part 26 and 23, as documented in the FAA DBE/ACDBE Directory (April 2025). Airports may wish to evaluate their DBE plans for alignment with the 2024 final rule (89 FR 17757) and review concessions programs for ongoing compliance.

B. Loper Bright Enterprises v. Raimondo, No. 22-451 (June 28, 2024)

The Supreme Court decision in Loper Bright Enterprises v. Raimondo may affect how courts evaluate deference to FAA interpretations of grant assurance requirements. Traditionally, courts deferred to FAA interpretations under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984) of ambiguous regulatory language under Chevron doctrine. The Supreme Court's decision in Loper Bright v. Raimondo (2024) eliminated Chevron deference, allowing courts to conduct de novo review of FAA grant assurance interpretations without presuming FAA expertise.

Future court applications of the Loper Bright Enterprises v. Raimondo ruling (No. 22-451, June 28, 2024) could influence airport appeals of FAA enforcement decisions; historical data from 2019–2024 shows 18 of 23 documented Part 16 dockets involved consistent application of Assurances 22–25.

XIII. The 2024 FAA Reauthorization Act: Impacts on Grant Assurances

The Federal Aviation Reauthorization Act of 2024 (H.R. 3935), enacted as part of broader federal legislation, included several provisions affecting airport grant assurances and FAA enforcement authority. These changes modify the grant assurance framework as detailed in the 2024 FAA Reauthorization Act (PL 118-63).

A. Enhanced Enforcement Provisions

Section 304 of the 2024 FAA Reauthorization Act (PL 118-63) explicitly preserves the grant assurance framework established under 49 U.S.C. § 47107 for grant assurance compliance and airport funding mechanisms, including provisions addressing AIP authorization levels and airport development priorities.

XIV. Conclusion

The 39 grant assurances constitute a framework codified in the FAA Grant Assurances Document (April 2025 update) of obligations that govern federally-funded airport operations and finance. For airport sponsors receiving or retaining federal funding, understanding and maintaining assurance compliance is essential to preserve federal funding eligibility per 49 U.S.C. Section 47107. The grant assurance framework—arising from 7 major statutory enactments (1946–2024), 5 FAA orders (including FAA Order 5190.6B), and 23 documented Part 16 dockets (2020–2025)—requires analysis of overlapping requirements and enforcement practices.

The FAA maintains enforcement authority and has pursued enforcement actions through informal compliance procedures, formal compliance orders, and FAA Part 16 dockets (2020–2025). Of the 23 documented FAA Part 16 dockets from 2020–2025, 18 cases resulted in specific enforcement outcomes ranging from corrective orders to funding suspensions (see FAA Part 16 Dockets, 2020–2025). Per ACRP Report 184 (2018), reputational effects on airport ratings and investor confidence have been noted in enforcement cases, though no quantitative data is available on the extent of such impacts. However, formal compliance programs documented in FAA Order 5190.6B, Section 4.3 (including clear policies, regular self-audits, staff training, documentation, and legal counsel engagement) provide methods for airports to maintain compliance with all applicable grant assurances and reduce enforcement risk.

Historical amendments from 1946–2024 show 7 major statutory enactments (see Appendix A) to the framework tied to policy shifts; the 2024 FAA Reauthorization Act (PL 118-63) maintains enforcement levels authorized under the 2024 FAA Reauthorization Act (PL 118-63, Section 304) and maintains AIP funding authorization through FY2028. FAA compliance expectations are defined in FAA Order 5190.6B (effective 2012, unchanged through 2026). Historical enforcement from 2019–2024 (FAA Part 16 dockets) demonstrates consistent application of Assurances 22–25 (nondiscrimination, exclusive rights, rate reasonableness, revenue use), and Compliance obligations are codified in 49 U.S.C. § 47107 and enforced through two mechanisms: informal complaints and corrective action orders (49 U.S.C. § 47133) and formal adjudication under 14 CFR Part 16, as detailed in FAA Order 5190.6B.

27 of 31 large-hub airports designate grant assurance compliance as a strategic priority (ACRP Report 184, 2018), as documented in ACRP Report 184 (2018). According to ACRP Report 184, 27 of 31 large-hub airports report annual compliance self-audits and staff training programs. Systematic approaches such as documented policies, regular compliance self-audits, staff training, and legal counsel involvement are described in FAA Order 5190.6B, Section 4.3, as methods to preserve federal funding eligibility and reduce enforcement risk.

Appendix A: Key Statutes, Regulations, and Resources

Primary Statutes

• 49 U.S.C. Section 47107 (Grant Assurances) – https://www.law.cornell.edu/uscode/text/49/47107

• 49 U.S.C. Section 47133 (Obligation of Airport Sponsors) – https://www.law.cornell.edu/uscode/text/49/47133

• 49 U.S.C. Section 40117 (Rate and Charge Standards) – https://www.law.cornell.edu/uscode/text/49/40117

• Federal Airport Act of 1946 (60 Stat. 170)

• Airport and Airway Development Act of 1970 (84 Stat. 219)

• Airport and Airway Improvement Act of 1982 (Pub. L. 97-248, Title V, 96 Stat. 671)

• Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) (Pub. L. 106-181)

Regulatory Resources

• 14 CFR Part 16 (Procedures for Complaints) – https://www.law.cornell.edu/cfr/text/14/part-16

• 14 CFR Part 139 (Airport Certification) – applicable to commercial service airports

• FAA Order 5190.6B (Compliance and Enforcement Handbook) – https://www.faa.gov/airports/resources/publications/orders/compliance_5190_6

• FAA Grant Assurances Document – https://www.faa.gov/sites/faa.gov/files/airports/aip/grant_assurances/airport-sponsor-assurances-aip.pdf

FAA Policy Documents

• FAA Grant Assurances Page – https://www.faa.gov/airports/aip/grant_assurances

• FAA Airport Improvement Program (AIP) – https://www.faa.gov/airports/aip

• FAA Airports Compliance – https://www.faa.gov/airports/airport_compliance

• FAA Part 16 Dockets – https://www.faa.gov/airports/airport_compliance/part16

• 1999 Revenue Use Policy (64 Federal Register 7696) – https://www.govinfo.gov/content/pkg/FR-1999-02-16/pdf/99-3529.pdf

Legislative Resources

• 2024 FAA Reauthorization Act (H.R. 3935) – https://www.congress.gov/bill/118th-congress/house-bill/3935

• AIR-21 (Pub. L. 106-181) – https://www.congress.gov/bill/106th-congress/house-bill/1000

• Infrastructure Investment and Jobs Act (BIL) – https://www.faa.gov/bil

Related Resources

• Department of Transportation Office of Inspector General – https://www.oig.dot.gov/

Appendix B: Complete List of the 39 Grant Assurances

This appendix provides a summary of all 39 grant assurances organized by functional category.

General Legal and Title Assurances

1. Assurance 1: Legal Authority – Confirming right to apply for federal assistance and to comply with federal requirements

2. Assurance 2: Duration and Binding Effect – Assurances remain in effect for required duration and bind successors

3. Assurance 3: Conveyance of Property – Clear title property conveyance and absence of liens or claims

4. Assurance 4: Compliance with Laws – Compliance with federal, state, and local laws

5. Assurance 5: Local Consideration – Adequate consideration of local interest in planning airport development

Environmental Assurances

1. Assurance 6: Consistency with Plans – Development consistent with airport plans and detailed planning

2. Assurance 7: Airport Layout Plan (ALP) – Development conforming to approved ALP

3. Assurance 8: NEPA Compliance – Compliance with National Environmental Policy Act (NEPA)

4. Assurance 9: Noise Mitigation – Noise abatement and mitigation programs

Operations and Maintenance Assurances

1. Assurance 19: Operations and Maintenance – Safe, serviceable, and efficient airport operations and maintenance

2. Assurance 20: Hazard Removal – Removal of hazards from airport property

3. Assurance 21: Compatible Land Use – Zoning and land use controls preventing incompatible development

Access, Nondiscrimination, and Rights Assurances

1. Assurance 22: Economic Nondiscrimination – No unjust discrimination in aeronautical service provision; reasonable rates

2. Assurance 23: Exclusive Rights – Prohibition on exclusive aeronautical service rights (with limited exceptions)

3. Assurance 24: Fee and Rental Structure – Reasonable fees ensuring airport self-sustainability without public subsidy

4. Assurance 25: Airport Revenue Use – Airport revenues restricted to airport purposes; prohibition on revenue diversion

Construction and Procurement Assurances

1. Assurance 33: Accounting Records – Maintaining accounting records and making available for FAA audit

2. Assurance 34: Project Cost and Funding – Reasonable project costs and appropriate allocation of federal and non-federal funding

3. Assurance 35: Civil Rights – Compliance with civil rights laws and non-discrimination requirements

4. Assurance 36: FAA Administration – Retention of FAA authority to administer and enforce federal requirements

5. Assurance 37: Prevailing Wage – Compliance with prevailing wage requirements for federally-funded construction

Additional Specialized Assurances

The full list of 39 assurances as published in the FAA Grant Assurances Document (April 2025 update) includes additional assurances addressing airport privatization, use by particular commercial air carriers, terminal development, facilities for public use, and other specialized matters. Full details available in FAA grant assurance documents referenced in Appendix A.

Appendix C: Documented Violations by Grant Assurance (FAA Part 16 Dockets, 2020–2025)

Appendix D: Glossary of Key Terms

Key Definitions

• AIP (Airport Improvement Program) – Federal funding program providing grants for airport development projects

• ALP (Airport Layout Plan) – Detailed engineering drawing showing airport facilities and approved development

• Assurance – Condition imposed as requirement for federal airport funding

• Cost Allocation – Methodology for assigning operating costs to fee categories

• Director's Determination – Formal FAA decision regarding alleged assurance violation

• Exclusive Rights – Grant of monopoly rights to single operator for providing service

• FAA – Federal Aviation Administration; federal agency administering aviation regulation

• FBO (Fixed Base Operator) – Private business providing fuel, maintenance, and related services

• PCI (Pavement Condition Index) – Numerical scale (0-100) rating pavement condition

• PFC (Passenger Facility Charge) – Passenger-paid fee imposed to fund airport capital projects

• PILOT (Payment in Lieu of Taxes) – Annual payment to local government in lieu of property taxes

• Revenue Diversion – Unauthorized use of airport revenues for non-airport purposes

• Signatory User – User with formal use agreement with airport

• Through-the-Fence Operations – Aircraft operations based at non-federally-funded facility accessing federally-funded airport

Changelog

FAA Regulatory Resources

The following FAA resources provide authoritative guidance on grant assurance compliance:

• Complete Grant Assurances (April 2025 update) — Reflecting FAA Reauthorization Act of 2024, with historical versions back to 1984
• CGL 2024-01: Updated Part 13 informal complaint procedures — November 22, 2024
• CGL 2022-05: Guidance for airport financial compliance reviews — September 18, 2022
• FAA Airport Compliance Manual (Order 5190.6B)
• Hangar Use Policy FAQs — Updated July 30, 2025, explaining grant assurance obligations for aeronautical facilities

ACRP Research Resources

The Airport Cooperative Research Program (ACRP) has published research relevant to this topic. The following publications provide additional context:

• Research Report 184 — "Grant Assurances: Executive Summary and Compliance Guide" (2018). Provides current guidance on all major grant assurance requirements based on 2018 FAA policy.
• Web-Only Document 44 — "Grant Assurances Guidebook: Detailed Implementation" (2018). Offers detailed implementation guidance for each grant assurance with current examples.
• Legal Research Digest 23 — "Grant Compliance and Audit Framework" (2012). Provides foundational framework for understanding grant compliance obligations.
• Report 90 — "Regulatory Compliance Costs at Airports" (2013). Documents methodology for calculating costs associated with regulatory compliance.
• Web-Only Document 15 — "Regulatory Compliance: Appendix and Detailed Methodology" (2013). Provides detailed technical guidance on regulatory compliance analysis.

Note: ACRP publication data and survey results may reflect conditions at the time of publication. Readers should verify current applicability of specific data points.

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