PRESIDENT UNVEILS FISCAL YEAR 2012 BUDGET

February 18, 2011

What’s at Issue
On February 14, 2011, the Obama administration released its federal budget proposal for fiscal year 2012 (FY12).  The proposed budget is the President’s recommendation, given to Congress, on funding levels of the federal government. 

Why It’s Important
The President’s budget provides funding for critical airport development, air traffic control modernization and aviation security.

The Obama administration did not include a user fee proposal on general aviation to help finance the Federal Aviation Administration’s (FAA) Airport and Airways Trust Fund. 

Major Provisions
Federal Aviation Administration

• Operations – The FY12 request is $9.8 billion, an increase of $473 million (5 percent) above FY10.

• Facilities and Equipment – The FY12 request is $3.1 billion, an increase of $184 million (6 percent) above FY10.
• Research, Engineering & Development – The FY12 request of $190 million remains unchanged from FY 2010.
• Grants-in-Aid for Airports (AIP) – The total request is $5.5 billion for FY12. 
  • $2.4 billion would come from the Airport and Airway Trust Fund, a reduction of $1.1 billion from FY10 levels, by eliminating guaranteed funding for large- and medium-hub airports.
  • There would be a $3.1 billion one-time General Fund contribution for AIP funding.  While regular AIP eligibility will be suspended for large- and medium-hub airports, eligible airports in all size categories will be able to compete for the $3.1 billion.

• Next Generation Air Transportation System (NextGen) – $1.24 billion is provided for the FAA’s long-term plan to improve the efficiency, safety, and capacity of the air traffic control system.  This is a $370 million increase over FY10. 

Department of Homeland Security

• $56.9 billion is provided for the department, a $1.2 billion increase over FY11 Continuing Resolution levels. 
• Transportation Security Administration (TSA) - $8.1 billion is included for the TSA, a $466 million increase over FY11 Continuing Resolution levels.

Aviation Security

• $5.4 billion is provided for civil aviation security, including screening operations, explosives detection systems, aviation regulation and enforcement activities, and air cargo screening operations.

NATA Position
The President’s FY12 budget proposal clearly identifies the need to modernize our nation’s air traffic control system.  This budget proposal is the first step in an important process to ensure the necessary funding to support NextGen, airport infrastructure development and a number of other critical safety programs.

Status
The Congress will begin the year by holding hearings on portions of the budget before drafting legislation to fund all federal government agencies.  To view the entire FY12 budget request, please click here www.whitehouse.gov.

Staff Contact:   Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero

View in PDF format.

For general press inquiries, contact Shannon Chambers at 703-298-1347 or schambers@nata.aero. 

The National Air Transportation Association (NATA) has been the voice of aviation business for more than 80 years. Representing nearly 3,700 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.