The FAA Reauthorization Act of 2024, signed into law on May 16, marks a pivotal shift in airport land use and project management, offering airports greater flexibility and independence in managing their projects. By loosening federal oversight on non-aeronautical land and establishing a streamlined notification process, the act enables airports to better leverage their property for non-aeronautical ventures. This change provides an invaluable opportunity for airports to diversify income sources, strengthen financial sustainability, and invest more confidently in projects without extended federal reviews.
The FAA Reauthorization Act of 2024 is a comprehensive bipartisan bill that reauthorizes the FAA and aviation infrastructure and safety programs for five years. This act extends the Airport Improvement Program (AIP) and other federal aviation programs through September 2028.
A major change introduced by the new law is Section 743, “Review of Airport Layout Plans,” which revises Section 163 (“Limited Regulation of Non-Federally Sponsored Property”) of the previous reauthorization act.
Why is this important for airports?
Airport sponsors look for ways to best use airport property to support the long-term vision of their airport while bringing in revenue for airfield maintenance and development. Many airports with property that may no longer be needed for aeronautical development are exploring options to sell, lease, or repurpose portions of it for non-aeronautical uses. Doing so offers airports a way to generate new revenue streams and bolster financial sustainability. However, it also comes with regulatory complexities that require careful navigation to ensure compliance with FAA requirements.
The 2024 reauthorization introduces changes that affect how airport sponsors can move forward with such projects. Understanding these updates will help airport sponsors use airport property while still complying with federal regulations. For example, the FAA has instituted a land-use change approval action for non-aeronautical land uses for which the FAA has Airport Layout Plan approval authority.
Among the notable changes under Section 743:
- Removed restrictions: The FAA no longer maintains a list of specific regulations it cannot enforce, allowing it to focus only on areas it has direct authority over.
- Airport layout plan (ALP) approval: The FAA’s approval is now limited to aeronautical parts of projects federally acquired or for conveyed land, reducing FAA control over non-aeronautical projects.
- Non-aeronautical projects: The FAA cannot regulate non-aeronautical portions of a project that do not trigger FAA ALP approval authority.
- Notification requirement: Airport sponsors must inform the FAA of projects that are outside of their oversight. The FAA has 45 days to respond or it will lose approval authority over that project.
Implementing Section 743 into current and upcoming projects
Official guidance on the FAA Reauthorization Act of 2024 may take time to develop. The most important step for airport sponsors is to meet with their FAA program manager early and often throughout the process. In addition, airport sponsors should carefully consider:
- Project classification: Clearly define aeronautical vs. non-aeronautical parts of a project.
- Land and funding: Note that the FAA retains oversight of federally funded and federally conveyed land.
- Grant conditions: Clarify what grant conditions apply when a project includes both aeronautical and non-aeronautical uses.
- Notification tracking: Maintain a system to track FAA notifications and responses to avoid jurisdiction issues.
- Ongoing FAA communication: Regularly check in with local FAA offices for updates on project approvals and jurisdiction.
- Risk management for non-jurisdictional projects: Document decisions and manage risks for projects outside FAA control to avoid future compliance issues.
Similarly, if the FAA does not have ALP approval authority, then it lacks land use authority. A separate FAA land-use change action is required for proposed non-aeronautical uses on federally required or conveyed property. This ties back to recent changes to the FAA’s land-use change policy (January 8, 2024).
As airports adapt to these updates, it’s critical that they accurately classify projects, clearly communicate with the FAA, and diligently track notification responses to maximize the benefits of this new legislative landscape. Ultimately, the 2024 Reauthorization Act will empower airports to shape their own development paths, promoting economic resilience while maintaining essential regulatory compliance.
Resources
- Text of H.R.3935–118th Congress (2023-2024): FAA Reauthorization Act of 2024 | Congress.gov
- FAA Reauthorization Act of 2018
- “FAA Reauthorization Act Makes Key Changes to Airport Law,” (May 16, 2024), Kaplan Kirsch LLP
- Updated Reauthorization Program Guidance Letter (R-PGL) 19-02: Planning Project Eligibility, 2022-03-04
—Melissa Underwood is a senior aviation planner with SEH.
