Aviation Finance: Distribution of Airport Grant Funds Complied with Statutory Requirements

The Federal Aviation Administration (FAA) administers the Airport Improvement Program (AIP), which provides billions of dollars in federal grants to airports for planning and development projects. The total funds awarded by FAA was consistent with the total amount of AIP funds available for obligation for fiscal years 1996 through 2000. FAA also made available or awarded AIP grant funds in accordance with the statutory formulas and set-asides contained in the authorization acts for the five fiscal years reviewed. In some cases, FAA awarded more funding than required to some airports and projects when it distributed the remaining AIP discretionary funds, which are not subject to statutory formulas or set-asides. GAO also found that small airports received greater amounts than large airports.