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Audit Initiated of FAA’s Prevention and Detection of Airport Revenue Diversion

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The Federal Aviation Administration (FAA) supports the Nation’s aviation needs by providing Federal assistance through grants-in-aid to airports around the country. Recipients are bound by Federal restrictions on how they may use airport revenue; diverting funds for other purposes is prohibited by law. Beginning in March 2020, Congress provided FAA with $20 billion to assist airports with economic relief during the Coronavirus 2019 pandemic. The unprecedented amount also significantly increased the opportunities for and the risk of revenue diversion among the Nation’s airports.

Given the importance of promoting effective stewardship of taxpayer dollars used to support the Nation’s airports, we are initiating this audit. Our objective is to assess whether FAA’s oversight policies and procedures are sufficient to prevent or detect airport revenue diversion. In addressing this objective, we plan to determine if airport sponsors have diverted revenue from commercial service airports.