Aviation Fuel Tax Program
🏛 Illinois Department of Transportation
Can you apply?
This grant is for local government units and airport owners/sponsors in Illinois that want to fund airport-related infrastructure and operations. Eligible applicants include municipalities, counties, and other local entities that own or operate airports. Grants are distributed proportionally based on enplanements, cargo volume, and airport operations. Large municipalities (over 500,000 population) receive dedicated funding allocations for sound-reduction window replacements and airport improvements.
This grant is for local government units and airport owners/sponsors in Illinois that want to fund airport-related infrastructure and operations. Eligible applicants include municipalities, counties, and other local entities that own or operate airports. Grants are distributed proportionally based on enplanements, cargo volume, and airport operations. Large municipalities (over 500,000 population) receive dedicated funding allocations for sound-reduction window replacements and airport improvements.
Program description
The State Aviation Program Fund is created in the State Treasury. Moneys in the Fund shall be used by the Department of Transportation for the purposes of administering a State Aviation Program. Subject to appropriation, the moneys shall be used for the purpose of distributing grants to units of local government to be used for airport-related purposes. Grants to units of local government from the Fund shall be distributed proportionately based on equal part enplanements, total cargo, and airport operations. With regard to enplanements that occur within a municipality with a population of over 500,000, grants shall be distributed only to the municipality. All Aviation Tax Fuel funds are administered and disbursed for airport related purposes An airport owner/sponsor may use these funds for any purpose for which airport revenues may be lawfully used. Grant recipients should follow the FAA’s Policy and Procedures Concerning the Use of Airport Revenues (“Revenue Use Policy”), 64 Federal Register 7696 (64 FR 7696), as amended by 79 Federal Register 66282 (79 FR 66282). The Revenue Use Policy document defines permitted and prohibited uses of airport revenue. In addition to the detailed guidance in the Revenue Use Policy, the funds may not be used for any purpose not related to the airport.
For grants to a unit of government other than a municipality with a population of more than 500,000, “airport-related purposes” means the capital or operating costs of: (1) an airport; (2) a local airport system; or (3) any other local facility that is owned or operated by the person or entity that owns or operates the airport that is directly and substantially related to the air transportation of passengers or property as provided in 49 U.S.C. 47133, including (i) the replacement of sound-reducing windows and doors installed under the Residential Sound Insulation Program and (ii) in-home air quality monitoring testing in residences in which windows or doors were installed under the Residential Sound Insulation Program.
For grants to a municipality with a population of more than 500,000, “airport-related purposes” means the capital costs of: (1) an airport; (2) a local airport system; or (3) any other local facility that (i) is owned or operated by a person or entity that owns or operates an airport and (ii) is directly and substantially related to the air transportation of passengers or property, as provided in 49 U.S.C. 47133. For grants to a municipality with a population of more than 500,000, “airport-related purposes” also means costs, including administrative costs, associated with the replacement of sound-reducing windows and doors installed under the Residential Sound Insulation Program.
In each State fiscal year, the first $7,500,000 attributable to a municipality with a population of more than 500,000, as provided in subsection (a) of this Section, shall be transferred to the Sound-Reducing Windows and Doors Replacement Fund, a special fund created in the State Treasury. Subject to appropriation, the moneys in the Fund shall be used for costs, including administrative costs, associated with the replacement of sound-reducing windows and doors installed under the Residential Sound Insulation Program. Any amounts attributable to a municipality with a population of more than 500,000 in excess of $7,500,000 in each State fiscal year shall be distributed among the airports in that municipality based on the same formula as prescribed in subsection (a) to be used for airport-related purposes. Beneficiaries: Public airport owners/sponsors identified in the FAA National Plan of Integrated Airports System Administered by the Illinois Department of Transportation via the Illinois GATA Catalog of State Financial Assistance (CSFA 494-60-2511).
Who can apply
Eligible applicants
Details
This grant is for local government units and airport owners/sponsors in Illinois that want to fund airport-related infrastructure and operations. Eligible applicants include municipalities, counties, and other local entities that own or operate airports. Grants are distributed proportionally based on enplanements, cargo volume, and airport operations. Large municipalities (over 500,000 population) receive dedicated funding allocations for sound-reduction window replacements and airport improvements.
How to apply
Application links
Required documents
- Airport ownership documentation
- Enplanement and cargo data for allocation calculation
- Project scope and FAA compliance certification
- Budget breakdown for proposed airport improvements
- Local government authorization or board resolution
Program contact
- 👤 Joseph Segobiano
- 📧 joseph.segobiano@illinois.gov
Funding history
Annual funding for this program — Illinois state appropriations. How funding has trended year over year.
| 2020 | $6,541,552 | |
| 2021 | $5,058,531 | |
| 2022 | $9,828,447 | |
| 2023 | $17,819,394 | |
| 2024 | $21,762,848 |
FAQ
Who can apply for this grant?
Units of local government, airport owners, and airport sponsors in Illinois. Municipalities over 500,000 population have separate allocation formulas.
What are eligible uses of these funds?
Capital and operating costs of airports, airport systems, and related facilities. Sound-reducing windows and doors, air quality monitoring, and FAA Revenue Use Policy compliant activities.
Is there a deadline to apply?
Rolling deadline. Funds are distributed continuously based on the allocation formula.
What is the award amount?
Awards vary based on enplanements, cargo, and airport operations at your facility. Allocation formula determines your specific share.
Do I need to provide matching funds?
No cost sharing is required for this program.
💡 Tips for applicants
- Verify your airport's enplanement data and operational metrics early. These directly affect funding allocation.
- Review FAA Revenue Use Policy (64 FR 7696, amended by 79 FR 66282) before submitting to ensure compliant project scope.
- For large municipalities, understand the $7.5M sound-reduction window replacement fund set-aside and remaining allocation.
- Document that proposed uses are airport-related and comply with 49 U.S.C. 47133 requirements.
- Coordinate with your state airport office to confirm eligibility and current funding allocations.
⚠️ Common mistakes
Proposing non-airport activities or uses prohibited under FAA Revenue Use Policy guidelines. Misunderstanding allocation formulas or assuming equal grants to all airports. Failing to clearly demonstrate how projects serve air transportation of passengers or cargo.
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