The Aviation Funding Stability Act of 2025 would authorize the use of funds from the Airport and Airway Trust Fund to keep the Federal Aviation Administration operating if a fiscal year begins without enacted appropriations. It directs that amounts not otherwise appropriated may be made available for continuing FAA programs, projects, or activities, including operations, facilities and equipment, research, and grants to airports.
The bill also sets a cap on the rate of operations and establishes how long those funds stay available during a lapse. Finally, it amends the Internal Revenue Code to reflect the new funding authority and clarifies when and how these expenditures are counted against the prior-year appropriation framework.
At a Glance
What It Does
If FAA funding is not in a regular appropriation, funds from the Airport and Airway Trust Fund not otherwise appropriated become available to continue FAA programs at prior-year rates. It covers operations, facilities, equipment, research, and airport grants, and defines when those funds can be used and for how long.
Who It Affects
FAA program managers, airport sponsors relying on FAA grants, contractors supporting FAA activities, and the agencies overseeing aviation funding. The mechanism affects how FAA priorities are sustained during funding gaps.
Why It Matters
This creates a safety-net that prevents abrupt stoppages of FAA services and grants during lapses, reducing disruption risk for air travel and airport infrastructure—an issue professionals monitor when regular budgets stall.
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What This Bill Actually Does
The bill creates a fallback funding mechanism for the FAA. If Congress has not enacted a regular annual appropriation for the FAA in a given fiscal year, the unused portions of the Airport and Airway Trust Fund can be made available to continue FAA programs.
The continuity funding covers essential FAA activities—operations, facilities and equipment, research, and grants to airports—at a rate not greater than the prior year’s operations rate. Availability of these funds begins on the first day of a lapse and lasts until either a new regular appropriation acts becomes law or 30 days after the lapse begins, whichever occurs sooner.
The funds remain subject to the terms of the preceding year’s appropriation or applicable law on the first day of the lapse. The bill also requires that expenditures be charged to the applicable prior-year appropriation once a regular appropriation law is enacted and notes that the new funding authority would be reflected in the Internal Revenue Code.
If the act is in effect at the end of a fiscal year, funding levels continue into the next year under the same authority. This proposal is framed as a budgetary safeguard to preserve FAA capability and reduce disruption to aviation safety, infrastructure, and grants during funding gaps.
The Five Things You Need to Know
The bill creates a fallback funding mechanism using the Airport and Airway Trust Fund when FAA annual appropriation is not enacted.
Expenditures under this mechanism are capped at the prior year’s rate of operations.
Funds become available at the start of a lapse and stay available until the new law takes effect or 30 days pass.
Expenditures are charged to the applicable prior-year appropriation when normal funding resumes.
The bill amends the Internal Revenue Code to insert Aviation Funding Stability Act of 2025 as a recognized authority.
Section-by-Section Breakdown
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In General: fallback funding scope
If an FAA appropriation is not enacted, amounts in the Airport and Airway Trust Fund not otherwise appropriated may be made available to the FAA to continue programs, projects, or activities that were conducted with the prior year’s appropriations. This includes FAA—Operations, Facilities and Equipment, Research, Engineering and Development, and Grants-in-Aid for Airports. The aim is to preserve essential functions during a lapse, avoiding immediate service disruptions.
Rate for operations
The amount made available for these programs cannot exceed the rate for operations established in the preceding year’s regular appropriation. If there is no regular appropriation, it cannot exceed the rate established under a prior-year continuing resolution. This preserves fiscal discipline by tying the lapse-funded activities to historical spending levels.
Availability window
Funds made available under this section are usable from the first day of a lapse in appropriations and remain available until the earlier of: (i) the date the regular appropriation bill becomes law, or (ii) 30 days after the first day of the lapse. This defines a finite window for continuation funding while acknowledging potential legislative timing.
Terms and conditions
Expenditures under this fallback authority carry the same terms and conditions as the preceding year’s appropriation or authority on the first day of the lapse. This ensures consistency with existing obligations, ceilings, and restrictions tied to the prior framework.
End of fiscal year continuity
If this section remains in effect at the end of a fiscal year, the funding levels continue for the next fiscal year under the same authority, providing ongoing protection against funding gaps across years, subject to legislative renewal.
Expenditures and obligations
Expenditures and obligations made under this section are charged against the applicable appropriation, fund, or authorization as soon as a regular appropriation or continuing resolution is enacted into law, ensuring a clean transition back to normal funding.
Expenditure authority amendment
Section 1 9502(d)(1)(A) of the Internal Revenue Code is amended to insert Aviation Funding Stability Act of 2025, formalizing the funding mechanism within tax code and related expenditure authority.
Termination and override conditions
This section does not apply if another provision of law provides an ongoing appropriation, funds the program, or explicitly prohibits continued funding during a lapse. This preserves existing legal remedies and ensures no duplication of authority.
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Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- FAA administrators and program offices gain operational continuity and budgetary stability during lapses, reducing disruption risk to safety and management of aviation programs.
- Airport sponsors and communities relying on FAA Grants-in-Aid for Airports benefit from ongoing capital and safety projects when regular funding stalls.
- Aviation contractors and service providers tied to FAA programs retain workstreams and avoid abrupt shutdowns tied to funding gaps.
- Air traffic safety and security oversight teams maintain mission continuity, preserving safety and regulatory functions during delays in appropriations.
Who Bears the Cost
- The Airport and Airway Trust Fund may be drawn down in ways that divert funds from other authorized uses, potentially delaying non-FAA aviation initiatives.
- Some ongoing or future aviation projects funded by the trust fund could see delayed timelines if funds are diverted to cover lapse-period FAA programs.
- An implicit dependency on prior-year spending patterns may prevent real-time budgeting adjustments to reflect changing needs during a lapse.
- If lapses become protracted, there is potential for cumulative funding constraints within the trust fund, requiring legislative resolution.
Key Issues
The Core Tension
The central dilemma is balancing continuous FAA operations during funding gaps with the need for accountable, timely congressional control over annual spending and the risk that reliance on prior-year levels may entrench outdated priorities or obscure shifting aviation needs.
The mechanism creates a safety net by using trust-fund dollars to sustain FAA operations during funding gaps, but it raises questions about oversight, transparency, and long-run fiscal governance. Relying on prior-year spending assumes that the previous year’s priorities remain appropriate, which may not align with evolving aviation needs or safety initiatives.
The framework also places the entire burden of continuity on a subset of aviation funding, potentially crowding out other uses of the trust fund or complicating unwinding back to regular appropriations. Oversight, auditability, and clear triggers for return to full funding will matter to compliance teams and budget analysts reviewing the bill’s operational realism.
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