On behalf of the US Department of Transport (USDOT), US Transportation Secretary Elaine L Chao has announced an award of $10bn to commercial and general aviation airports under the CARES Act Airport Grant Program.
The US Government announced the Coronavirus Aid, Relief, and Economic Security (CARES) Act Airport Grant Program, which is expected to provide relief to families, workers, and businesses in the country.
Chao stated: “This $10bn in emergency resources will help fund the continued operations of our nation’s airports during this crisis and save workers’ jobs.”
The bill was approved two week ago and the USDOT’s Federal Aviation Administration (FAA) has announced the grants to the US airports that are eligible.
These grants will provide economic aid to the airports, which have been impacted by the Covid-19 pandemic.
FAA administrator Steve Dickson added: “Thank you to the dedicated men and women from the FAA’s Office of Airports for creating an entirely new programme in record time to assist airport sponsors in desperate need of these funds.”
This grant will be used to support the airports in continuing operations and to replace the revenue that was lost due to the decrease in passenger numbers.
Airports can use the funds for capital expenditures, operating expenses such as payroll and utilities, and debt payments.
The USDOT grant does not require any local match as the share from the federal government will be 100%.
FAA has planned to use a ‘streamlined application and grant-agreement process’ to award the grants immediately once the grant agreement is executed by the airport sponsor.
In February, USDOT announced airport infrastructure grants worth $520.5m to 287 airports located across 41 US states.