Pilot program for modernization, replacement, or full reconstruction of aging flagship terminals at transitional hub airports

(a) Establishment of pilot program The Secretary shall establish and carry out a pilot program (referred to in this section as the pilot program), under which the Secretary shall issue grants to the sponsors of not more than 3 transitional hub airports for the rehabilitation and modernization of such airports. (b) Transitional hub airport For purposes of this section, a transitional hub airport is an airport that— (1) was classified as a medium hub airport as of the date of enactment of this Act; (2) includes a primary terminal building constructed before January 1, 1990, that— (A) remains in active passenger service; and (B) continues to serve as the principal commercial passenger terminal of the airport; (3) did not complete a comprehensive redevelopment or replacement of its principal commercial passenger terminal on or after January 1, 1990; and (4) has a terminal modernization, rehabilitation, or reconstruction project that— (A) is included in a capital improvement program of the sponsor of the airport; (B) has completed environmental review in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and (C) has entered the final design stage. (c) Application A sponsor of a transitional hub airport shall submit to the Secretary, in such form and manner as the Secretary may specify, an application for a grant under the pilot program, including a demonstration, to the satisfaction of the Secretary, of— (1) the unique or historic architectural features of the terminal building that the airport sponsor proposes to preserve in conducting a prospective project under the pilot program; (2) the expected economic benefit of the prospective project to the surrounding area; (3) the extent to which the prospective project will— (A) enhance competition among incumbent air carriers; (B) facilitate air service by new entrant air carriers; and (C) facilitate new or improved air service between the airport and small communities; (4) the extent to which the prospective project will model innovative airport design principles that similarly situated airports might replicate in future projects for rehabilitation and modernization; (5) the demonstrable need for the prospective project to maintain the airport’s long-term viability and significance to the national integrated system of public-use airports; (6) project readiness; (7) the reasonable estimated costs of the prospective project; and (8) such other factors as the Secretary, in the sole discretion of the Secretary, determines to be appropriate. (d) Use of funds (1) Eligible activities A sponsor of a transitional hub airport selected at the sole discretion of the Secretary to participate in the pilot program may use the funds awarded under the pilot program to carry out any of the following activities at such airport: (A) Terminal development. (B) Demolition, construction, and improvement of terminal buildings or portions thereof. (C) Installation of utility, energy, baggage conveyor systems, and other systems for use on the property of such airport that are reasonably likely to support long-term usability and resilience. (D) Improvements to terminal buildings that are reasonably likely to improve passenger circulation and terminal capacity. (E) Replacement of obsolete ground support equipment and other airside components owned by the airport sponsor. (F) Improvements to cargo and logistics facilities on the property of such airport to expand cargo handling capacity. (2) Terms and conditions The Secretary may impose any additional terms or conditions regarding the use of the funds awarded under the pilot program that the Secretary, in the sole discretion of the Secretary, determines appropriate. (e) Federal share The Federal share of costs for the project of a transitional hub airport participating in the pilot program shall not exceed 90 percent of the total cost of the project specified in an application for a grant under this section. (f) Other administrative provisions (1) Eligibility The Secretary may issue a grant under the pilot program to the sponsor of a transitional hub airport for an eligible project that complies with— (A) all applicable Federal requirements governing procurement funded by Federal financial assistance; or (B) the same policies and procedures such airport sponsor is required to follow for any procurement with non-Federal funds. (2) Certain prior costs as allowable costs The Secretary may decide that a project cost under this section incurred before the date on which the grant agreement is executed is allowable if the cost is— (A) necessarily incurred in formulating or preparing for a project under this section, including costs incurred for field surveys, plans and specifications, property interests in land or airspace, utility relocation, work site preparation, and administration or other incidental items that would not have been incurred except for the project; or (B) necessarily and directly incurred in developing the work scope of the project under this section. (g) Appropriation In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2027, out of any money in the Treasury not otherwise appropriated, to remain available until expended, $10,000,000,000 to carry out the pilot program established under this section, of which not more than 3 percent shall be available for administrative expenses. The Secretary may transfer amounts made available under this subsection to the Administrator to carry out the pilot program. (h) Exclusions No portion of the funds made available under section 48103 of title 49, United States Code, shall be made available for implementation of this section. (i) Briefing Not later than 1 year after establishing the pilot program, the Secretary shall brief the appropriate committees of Congress on the status of the pilot program.