Virginia has become the latest state to freeze aviation program funding but that may be temporary. The state government has frozen spending of the $14.2 million budget until Dec. 1. Virginia is facing a $2 billion budget shortfall and all government agencies have been told to trim 15 percent. The funding freeze may force some airports to borrow money to keep projects going that have already been started. The catch? If the freeze continues, it could jeopardize federal grants that pay up to 90 percent of the cost of airport improvements — the federal money is almost always contingent on a small contribution from the state.
Airport Funds Frozen
Key Takeaways:
- Virginia has frozen $14.2 million in aviation program funding until December 1st, stemming from a $2 billion state budget shortfall that requires all agencies to trim 15 percent.
- The funding freeze may compel some airports to borrow money to continue with ongoing projects.
- A prolonged freeze could jeopardize federal grants, which typically cover up to 90 percent of airport improvement costs and are contingent on a smaller state contribution.
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