FAAP Final Inspection Report, Form FAA 1627 (RIS:AS 5100-4) 240-1

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CHAPTER 1. PROGRAM OBJECTIVE AND FUNDS

SECTION 1. PURPOSE AND BACKGROUND OF PROGRAM

PURPOSE.

This handbook sets forth the policies, procedures and guidelines for administering the Federal-aid Airport Program. This program has been established by the FAA to carry out the provisions of Section 4 (a) of the Federal Airport Act (49 U.S.c. 1101) i.e., to make grants of funds to sponsors for airport development to bring about, in conformity with the National Airport Plan, the establishment of a nationwide system of public airports adequate to meet the present and future needs of civil aeronautics.

BACKGROUND. Sections 5, 6 and 7 of the Federal Airport Act cover
appropriations and funds. The Act was amended by P.L. 84-211, to grant
contract authority for the Fiscal Years 1956 through 1959 which was
extended by P.L. 86-72 through Fiscal Year 1961. P.L. 87-255, approved
September 20, 1961, amended the Act to authorize appropriations for each
of three fiscal years beginning with the year ending June 30, 1962,
P.L. 88-280 approved March 11, 1964, amended the Act to authorize appro-
priations for each of three fiscal years beginning with the year ending
June 30, 1965.

There are no regulations specifically covering these sections of the Act and this chapter sets forth policies and procedures in connection with appropriations, contract authorization, and funds. For all practical purposes, appropriations (other than administrative) will be treated in the same manner as contract authority and will not be dealt with separately in this chapter.

CONTRACT AUTHORITY. Contract authority is the authority to obligate funds by the execution of Grant Agreements prior to the time such fuds are appropriated by the Congress.

ADMINISTRATIVE EXPENSES. Section 5(e) of the Act covers administrative expenses of the Federal Aviation Agency, itself, relative to administration of the Federal Airport Act. As used herein, Section 5(e) includes expenses of the character specified in Section 303 of the Federal Aviation Act of 1958 (72 Stat. 731).

. 8. RESERVED.

SECTION 2. PROGRAM FUNDS

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9. GENERAL. Since contract authorization is essentially the same as available funds or appropriations, it will be referred to herein as either contract authority or funds. The funds authorized by the Congress for obligation under the Act shall be distributed in the manner set out in Paragraphs 10 through 14.

10.

FUNDS AUTHORIZED PRIOR TO P.L. 07-255. Section 5(a) of the Act provides
for continental U. S. contract authority in the amount of $40 million for
the Fiscal Year ending June 30, 1956, and for continental U. S. contract
authority in the amount of $60 million for each of the Fiscal Years
ending June 30, 1957, June 30, 1958, June 30, 1959, June 30, 1960, and
June 30, 1961.

Section 5(b) of the Act provides contract authority for projects outside
the continental United States in the amount of $2,500,000 for the Fiscal
Year ending June 30, 1956, and in the amount of $3,000,000 for each of
the Fiscal Years 1957 through 1961. These amounts are divided as follows:
45 per cent for projects in Alaska, 25 per cent for projects in Hawaii,
20 per cent for projects in Puerto Rico and 10 per cent for projects in
the Virgin Islands.

These authorizations remain available until obligated. Funds appropriated to liquidate these obligations remain available until expended.

11. FUNDS AUTHORIZED BY P.L. 87-255 AND P.L. 88-280. Funds authorized by these laws are distributed as follows:

a.

b.

C.

Sections 5(a)(1) and 5(a)(4) Funds. These sections of the amended Act authorize appropriations of $66,500,000 for each fiscal year for projects in the fifty states.

Sections 5(a)(2) and 5(a)(5) Funds. These sections authorize appropriations in addition to the amounts authorized by Sections 5(a)(1), 5(a)(3), 5(a)(4) and 5(a)(6), of $1,500,000 for each fiscal year for projects in Hawaii, Puerto Rico and the Virgin Islands. Funds authorized under these sections are divided as follows: 40 per cent for Hawaii, 40 per cent for Puerto Rico and 20 per cent for the Virgin Islands.

Sections 5(a)(3) and 5(a)(6) Funds. These sections authorize appropriations of $7,000,000 for each of the fiscal years for the purpose of developing in the several states, airports the primary purpose