Within the past few days, the FAA and U.S. DOT took several significant steps toward aligning federal grant programs with the Trump administration’s policy priorities and objectives, especially as set forth in a series of Executive Orders issued early in this administration. The following documents are of considerable importance to airport sponsors and their compliance with federal law. We recommend that airport sponsors review these materials closely and expediently.

• Today, the FAA issued Notice of Intent to modify the standard Airport Improvement Program (AIP) Grant Assurances, which would be applicable to all grants issued in FY25 and beyond. The proposed modifications would implement several mandates contained in the FAA Reauthorization Act of 2024, as well as require compliance with certain Executive Orders issued by the administration (while eliminating the obligation to comply with others). A complete copy of the proposed revisions to the Grant Assurances is available on the FAA’s website. In accordance with statutory requirements, the FAA will accept comments on the proposed revisions for 14 days; however, we understand the agency is effectively implementing the new Assurances immediately. The FAA has not addressed whether sponsors would be relieved of obligations existing under already executed grant agreements that are inconsistent with the proposed modifications to the Grant Assurances.

• The Secretary of Transportation has issued a letter to all grant recipients reminding them of their obligation to comply with federal law. The Secretary’s letter emphasizes compliance with federal anti-discrimination laws, and asserts the Department’s position that any policy, program, or activity that is based on a prohibited classification, including diversity, equity, and inclusion programs, “presumptively violate federal law.” The Secretary also asserts that federal law requires airport to cooperate with (and not impede) Immigration and Customs Enforcement (ICE) and other Department of Homeland Security agencies in the performance of their duties. We understand that the FAA will update (and other agencies have already updated) the form of their grant agreements to explicitly reference these requirements in connection with a grant award. That update will apparently appear as a new set of “special conditions” in all grant agreements (not as new Grant Assurances).

• The FAA has redesignated its current list of Required Federal Contract Provisions, last updated May 24, 2023, as “historical.” The FAA’s website notes that it is “updating the Required Contract Provisions for AIP and Obligated Sponsors,” presumably to reflect changes as a result of several of the administration’s Executive Orders. We are not aware of any timeline for posting revisions to the Required Federal Contract Provisions.

The developments summarized above may have significant implications for airport sponsors and their programs, and the public comment period for the proposed modifications to the Grant Assurances is unusually short. Notably, several of the Executive Orders and portions thereof are also the subject of ongoing legal challenges. We therefore encourage airport staff to consult with their counsel for further guidance on compliance with these new requirements.

For any questions regarding this alert, please contact Peter Kirsch, Steven Osit, Slone Isselhard, or any other Firm attorney with whom you normally work.