The Federal Aviation Administration (FAA) Reauthorization bill is a crucial piece of legislation that affects the safety and efficiency of air travel in the United States. It is an important, multi-year tool for Congress to ensure that the FAA is adequately funded and equipped to meet the challenges of an evolving aviation industry.

The FAA Reauthorization bill typically covers a wide range of aviation-related issues, including safety regulations, consumer protections, airport funding, air traffic control modernization, and research and development programs. It also sets policies and regulations for the use of unmanned aircraft systems (drones) and other nascent technologies in commercial and private applications.

As the authorization for the FAA is due to expire on Sept. 30, 2023, Congress is preparing to reauthorize the agency, with bipartisan support. The FAA was last reauthorized in 2018.

On July 20, the House adopted H.R. 3935, the “Securing Growth and Robust Leadership in American Aviation Act,” with an overwhelmingly bipartisan 351-69 vote. The Senate has prepared its own bipartisan bill, S. 1939, the “FAA Reauthorization Act of 2023,” but thus far has not made much progress with advancing that through the Senate Commerce, Science, and Transportation Committee due to disagreements over training requirements for commercial airline pilots. Both bills also include a five-year reauthorization of the National Transportation Safety Board (NTSB).

Under the House bill, H.R. 3935, the FAA would be fully reauthorized through fiscal year (FY) 2028. The bill includes $104 billion for core FAA operations and programs, $1.4 billion for the Essential Air Service program, and $1.3 billion for FAA research and development. The following is a brief overview of notable provisions within the House bill.

Investing in Airport Infrastructure:

• Authorizes $4 billion from the Airport and Airway Trust Fund (AATF) for the Federal Aviation Administration’s (FAA’s) Airport Improvement Program (AIP) account for each of fiscal years (FYs) 2024 through 2028. AIP grants provide vital planning and development funding to public-use airports across the country.
• Removes most restrictions on the kinds of terminal development projects AIP can beused for, reducing the need for airports to segment terminal projects to comply with program requirements.
• Authorizes the U.S. Secretary of Transportation to approve AIP grants for projects that use innovative financing techniques.
• Allowing the Secretary of Transportation to award discretionary grants to public-use airport sponsors who have assessed current and future electrical power demands, including from electric aircraft charging, and who pursue a related airport development project.
• Increasing the amount apportioned per passenger boarding for primary airports:
  • $15.60 for each of the first 50,000 passenger boardings
  • $10.40 for each of the next 50,000
  • $5.20 for each of the next 400,000
  • $1.30 for each of the next 500,000
  • $1 for each additional passenger
• Increasing the amount apportioned per passenger boarding for nonprimary airports:
  • Airports between 2,500 to 10,000 boardings would receive $60 for each of the first 2,500 boardings, and $153.33 for each of the next 7,499 passenger boardings.
• Decreasing apportionment reductions from 75% to 60% for airports owned by public agencies that impose a passenger facility charge of more than $3 per person.
• Expanding the definition of “airport development projects” to include constructing childcare facilities for airport employees or improving runways.

Addressing growing cybersecurity threats and encouraging aviation innovation:

• Directing the FAA to establish a national airspace system cyber threat management process, and providing FAA with exclusive authority to issue regulations focused on cybersecurity standards for civil aircraft, including unmanned aircraft systems, aircraft engines, propellers, and appliances.
• Directing the FAA to finalize a special federal aviation regulation that establishes procedures for certifying powered-lift pilots and operational rules for powered-lift aircraft, such as those capable of vertical takeoff, vertical landing, and low-speed flight using engine power.
• Authorizing $50 million, over five fiscal years, to expedite the development, acquisition, and deployment of technologies to support space launch and reentry integration.

Incorporating drones and unmanned aircraft in the national airspace:

• Directing the FAA to implement a program that enables a broad variety of testing and evaluation activities at drone test ranges.
• Allowing drone test range sponsors to receive federal funding other than the FAA, including in-kind contributions, for test range participants to further testing and evaluation objectives.
• Allowing the FAA to establish alternative altitude ceilings for drones flown in Class G uncontrolled airspace.
• Directing the FAA to issue a final rule to implement a petition process to prohibit or temporarily restrict drone operations in close proximity to a fixed site facility. The bill also expands the locations considered fixed sites to include state correctional facilities and large outdoor gatherings.
• Directing the FAA to issue a notice of proposed rulemaking to establish performance-based criteria and risk-based operational regulations for drones operated beyond visual line of sight that are intended to operate primarily at or below 400 feet above ground level.
• Requiring the FAA to adopt a performance- and risk-based approach for reviewing requests to waive certain FAA drone regulations, including guidance related to visual line of sight, operations over people, and operations involving small drones.
• Authorizing $50 million over five fiscal years for DOT to make grants to state, local, and tribal governments to use drones for inspecting, constructing, maintaining, and operating critical infrastructure to better worker safety.
• Authorizing $50 million over five fiscal years for grants to educational institutions for drone education and training.
• Allowing the FAA to enter into agreements to test and refine the Unmanned Aircraft System Traffic Management (UTM), which would authorize qualified UTM service providers to better enable advanced drone operations and foster the integration of drones using UTM capabilities within the national airspace.
• Expanding the BEYOND program to additional locations, and to test the use of new aviation concepts and technologies.

Improving the Passenger Experience and Consumer Protections:

• Requires the U.S. Secretary of Transportation to direct airlines providing scheduled passenger service to establish policies regarding reimbursement for lodging, transportation between such lodging and the airport, and meal costs incurred due to a flight cancellation or significant delay directly attributable to the air carrier.
• Directs the U.S. Secretary of Transportation to issue a notice proposed rulemaking to establish a policy directing air carriers that assign seats, or allow individuals to select seats in advance of the date of departure of a flight, to sit each child who has not attained the age of 14 years, adjacent to an accompanying adult at no additional cost beyond the ticket price.
• Directs the U.S. Secretary of Transportation to require air carriers to provide a refund to individuals with disabilities who purchase a ticket to fly on a carrier but cannot travel because the mobility aid of the individual cannot physically be accommodated in the cargo hold.
• Establishes the Passenger Experience Advisory Committee within the U.S. Department of Transportation to advise the Secretary of Transportation and the Administrator of the FAA in carrying out activities relating to the improvement of the comprehensive passenger experience in air transportation customer service.

One of the core differences between the House and Senate bills relates to pilot training and the maximum allowable simulator hours. Under the House bill, pilots would be allowed to obtain as many as 150 additional hours of experience in a full flight simulator, versus the current 100 hour maximum. The Senate version, currently, does not increase the maximum simulator hours allowed.  

Now that the bill has been adopted by the House, the Senate has several options: adopt the House bill, amend the House bill, and send it back to the lower chamber, or adopt its own version of the bill. If the Senate proceeds with its own version, the two chambers would need to reconcile the differences through a conference proceeding. The current FAA authorization expires on Sept. 30, which may require Congress adopt a short-term extension if the chambers are not able to agree on legislation prior.