A Federal Aviation Administration (FAA) grant assurance is a contractual obligation an airport accepts in exchange for federal Airport Improvement Program (AIP) funding. These obligations cover commitments such as maintaining safe operations, using airport revenue only for airport purposes, and avoiding unjust discrimination. Airport sponsors rely on Kaplan Kirsch for federal grant assurance compliance advice on exclusive rights, revenue diversion, and unjust discrimination. We also advise on access restrictions, self-sustaining rate structures, and proprietary powers. This includes new grant conditions relating to diversity, equality, and inclusivity (DEI) and immigration policy. Clients achieve proactive grant assurance compliance by developing minimum standards, revising leasing practices, and adopting new airport rules, regulations, and policies. Kaplan Kirsch attorneys regularly meet with FAA officials at the district, regional, and headquarters levels to resolve complex compliance matters.
Grant assurance obligations generally run for the life of the federally funded project. Revenue use and exclusive rights assurances remain in effect for as long as the airport operates as an airport. Termination is possible only in limited circumstances, and we have successfully advised airports on how to navigate this.
Grant Assurance Violations
If an airport violates a grant assurance, the FAA can pursue action. This starts as an informal Part 13 complaint and can escalate to a formal Part 16 proceeding. A Part 16 complaint is a formal administrative proceeding under 14 C.F.R. Part 16. It lets an airline, fixed-base operator, or other party allege that a sponsor is violating a grant assurance. The FAA then investigates and, if warranted, issues a compliance determination. Airports found in violation often negotiate a corrective action plan (CAP) with the FAA to avoid formal proceedings.