Building the Aviation Infrastructure: A brief history of the Aviation Trust Fund

Janet Bednarek, Ph.D.

Professor of History, University of Dayton Dayton, Ohio President, PWHS Board of Trustees

he Aviation and Airway Trust Fund (or simply Aviation Trust Fund) was created in 1970 to provide a secure form of federal aid for the expansion and upgrading of the nation’s airports and airways. As first conceived about half the monies would go to airport construction and the other half to upgrading and maintaining the airways (the “electronic highway system” that guides airplanes through the skies). Although both airports and the airways are crucial to the nation’s air transportation system, the airport part of the program proved the most controversial over time. The airways system for airplanes was seen as analogous to the nation’s highway system for cars and trucks. Politicians had little trouble seeing its development and upgrading as a national responsibility. Airports, on the other hand, are locally owned and operated. Large airports can also generate a tremendous amount of revenue. And they are used primarily by private companies—the airlines. Repeatedly, politicians and pundits have questioned the need and appropriateness of any form of national funding for the largest commercial airports. They argued that such facilities should be locally and privately funded (and perhaps even privately owned). Therefore, while it seldom makes the headlines, controversy has been a constant feature of the Aviation Trust Fund’s airport funding program.

Congress had created a federal airport aid program shortly after World War II. It was funded out of general tax receipts and also generated controversy from its inception. As proponents fought to expand the program, critics, including President Dwight Eisenhower, sought to eliminate it. Throughout the 1950s and 1960s, Congress repeatedly appropriated far less than was authorized. By the late 1960s, though, the introduction of jet aircraft and the rapid expansion of commercial and business air travel had combined to greatly strain the capacity at the nation’s busiest airports. Local governments, the airline industry, and other aviation boosters pushed for the creation of a larger and more stable source of funding. After lengthy debate, Congress passed the Aviation and Airways Development and Revenue Acts in 1970.

Though created to provide a steady and stable form of aid, the Aviation Trust Fund has been neither steady nor stable. It was initially authorized to exist for 10 years. At the end of that first decade, Congress could not agree on a formula for extending it and the program essentially ceased for two years. After its reauthorization in 1982, the trust fund was caught up in the fights over the federal budget deficit. To keep down federal spending (and the apparent size of the deficit) Congress repeatedly appropriated less than was authorized—and far less than the funds available in the trust fund. A surplus built up in the trust fund. And there have been repeated arguments over how much, if any, of the monies should be used to help fund the Federal Aviation Administration.

In addition to FAA funding, there have been arguments over exactly what type of projects would be eligible for federal aid. Projects funded with federal aid must address safety and capacity. Therefore, they primarily involve so-called “air side” projects—runways, taxiways, and clear zones, for example. Despite complaints from cities and airlines, improvements or expansions to air terminals—the “land side” of airports and the part most visible to air travelers—have been excluded. Trust funds monies have also helped address the most serious environmental problem facing airport managers—noise. Beginning in 1976, federal grants from the trust fund have been available to purchase properties adversely affected by jet aircraft noise.

Despite repeated calls for its elimination, the Aviation Trust Fund has proved an important source of funding for the nation’s airports. Though the majority of the funding for airport improvements has come from local and airline sources, federal monies have served as a key element in the financing packages.

Janet Bednarek can be reached at (937) 229-2848 or janet.bednarek@notes. udayton.edu.