Today the Federal Aviation Administration (FAA) updated its frequently asked questions (FAQ) document to provide key guidance for airport sponsors on how the FAA will distribute $10 billion that Congress approved as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The FAQ document outlines the process for airports to obtain grants, which includes completing an application and a simplified grant agreement prior to an airport being able to access funds. The document also addresses other questions that AAAE has been receiving from members on the CARES Act, such as federal share for multi-year FY2020 grants and compliance with the employee retention requirement.
FAA's updated FAQ document on CARES Act Airport Grants can be viewed CARESAirports@faa.gov. Highlights from the updated FAQ are included below.
Applications and Simplified Grant Agreement. In the FAQ, FAA addressed questions regarding the process for obtaining grant funds available to your airport under the CARES Act. FAA stated:
"Q-GA1: Is a grant application required to receive CARES Act Airport Grants?
A: Yes, with one exception. After the Secretary of Transportation announces awards under the CARES Act, each airport sponsor must submit a grant application to access those funds. However, sponsors do not need to apply for the increased Federal share of FY 2020 AIP or FY 2020 Supplemental Discretionary grants.
Q-GA2: Will the FAA use a standard grant application form or one specifically designed for this program?
A: The FAA will use the Office of Management and Budget (OMB) SF-424, Application for Federal Assistance.
Q-GA3: When will CARES Act Airport Grant applications be available and how long after filing a complete application should an airport sponsor expect to receive a grant?
A: The FAA will provide this application to airport sponsors through the local Airports District Office or Airports Regional Office shortly after the Secretary announces CARES Act Airport Grants awards. The FAA anticipates providing a grant agreement for execution within days of receiving a complete application.
Q-GA4: Will the FAA use a standard AIP grant agreement or one specifically designed for this program?
A: The FAA will provide a simplified Grant Agreement shortly after it receives an application. This simplified agreement includes the requirements under the CARES Act and makes funds immediately available for expenses, other than airport development, including payroll, debt service, utility expenses, service contracts, and supplies."
We continue to have questions about how FAA's application process for CARES Act funding would actually work. However, we're hopeful that FAA will shed some light on this topic when the agency walks through the application process in more detail during tomorrow's program briefing. More details regarding the listen-only teleconference can be found Q-GA6: How will an airport sponsor submit payment requests for CARES Act Airport Grants?
A: The FAA will use the existing U.S. Department of Transportation Delphi eInvoicing system for payment requests. Airport sponsors will continue the current practice of submitting underlying payment request documentation. Examples of documentation include payroll receipts, janitorial contract invoices, and debt service payments. The FAA will review invoices manually to ensure adequate oversight, but it will process payments quickly."
Multi-Year FY2020 Grants. FAA indicated that the agency will provide a 100% federal share for multi-year grants issued in FY 2020 under FY 2020 appropriations. Future year funding for FY 2020 multi-year grants will continue to be provided at a 100% federal share as long as CARES matching funds remain available. Multi-year grants issued in FY 2019 or earlier are not eligible for a 100% federal share because they were issued under different appropriations laws. These grants will continue to be funded under the terms of the grant agreement.
Employee Retention Requirement. AAAE has received a number of questions relating to the employee retention requirement in the CARES Act which obligates airports to continue to employ, through December 31, 2020, at least 90% of the number of individuals employed as of March 27, 2020. FAA provided guidance on reporting and certifying compliance with this provision, including the process for requesting a waiver:
"Q12: How do small, medium and large hub airport sponsors report their respective compliance with the employee retention requirement?
A: Airport sponsors must certify compliance with the CARES Act employment requirements (outlined in Q11) at the time of grant execution and report employment totals quarterly on June 30, September 30, and December 31, 2020. That report and certification should include the number of full-time equivalent (FTE) employees working at the airport as of March 27, 2020, as the baseline comparison. Airport sponsors may make adjustments for employees who perform duties at both the airport and other facilities operated by the airport sponsor. Airport sponsors also may make adjustments for retirements or voluntary employee separations when calculating the workforce retention percentage. If an airport sponsor intends to request a waiver from the employment requirements, it should do so no less than 30 days prior to a quarterly report date and provide documentation supporting its request."
Administration of Funds Under State Block Grant Program. FAA responded to fourteen questions regarding how the CARES Act funds would be distributed under the State Block Grant Program (SBGP). FAA indicated that they will aggregate the amounts announced for each sponsor into a single award for participating states. These states will use a streamlined application and grant agreement process similar to what FAA is proposing to use for all CARES Act grant funds.