Opportunity Information: Apply for DOT OST 2024 0066

The Small Community Air Service Development Program (SCASDP) is a U.S. Department of Transportation discretionary grant program that helps smaller communities improve, restore, or expand commercial air service. It was created in federal law and has been reauthorized multiple times, most recently under the FAA Reauthorization Act of 2024, and it is codified at 49 U.S.C. 41743. The basic idea is to give eligible communities financial tools to make local air service more viable, more available, and more affordable for travelers, especially in places where service is limited, has been cut back, or has disappeared altogether. USDOT also notes that it wants selected projects to align with broader departmental priorities such as safety, equity, climate and sustainability, and workforce development and job quality.

Funding is provided as reimbursable grants, meaning the grant recipient generally incurs allowable costs first and then requests reimbursement under the grant rules. For the referenced funding cycle, USDOT anticipated making up to $12 million available for awards (FY 2023 appropriations), with no fixed minimum or maximum award size. In practice, awards in prior years have varied widely, from about $20,000 up to nearly $1.6 million, depending on what the applicant proposes and how strong the application is. USDOT can also choose to issue partial awards, depending on available funding and other constraints. A key structural limit is that no more than 40 total communities or consortia can be selected in a year when funds are appropriated, and no more than four selected applicants can come from the same state in a given fiscal year.

Only public entities can apply and serve as the legal sponsor (for example, local or tribal governments, airport authorities, or other public bodies). Private organizations are not allowed to be the lead applicant, although they may sometimes participate as partners depending on how a project is organized. Each community is limited to one application per cycle, either applying on its own or as part of a consortium. Consortium applications are allowed, but they are expected to be genuinely joint efforts with a single shared project and objective, and a clear governance approach (including establishing one entity to ensure the joint objective is carried out).

The program is not designed to keep extending the same effort year after year. Applications that are simply renewals or supplements of existing projects are not eligible to compete. In addition, the law includes a “same project” restriction: a community or consortium generally cannot receive a new grant to support the same project more than once within a five-year period. USDOT evaluates whether something is the “same project” by comparing the goals and objectives and the main components of how the applicant plans to achieve them. As an example, if a prior grant supported a revenue guarantee to a specific destination (or in a specific direction of service), a new request for another revenue guarantee to that same destination/direction within five years would normally be blocked even if the financial structure or the carrier type changes. On the other hand, a revenue guarantee aimed at a different destination/direction, or a proposal focused on broader marketing and promotion rather than the same revenue guarantee concept, may qualify as a new project. The statute also allows limited waivers of this five-year limitation, as introduced in FAA 2018 and continued as amended.

SCASDP can support a range of strategies that communities commonly use to improve air service. Eligible projects include subsidizing a U.S. air carrier to serve an underserved airport (generally limited to a period of up to three years), helping an underserved airport (or an airport that has lost service or seen it substantially reduced) attract and secure service, and implementing other measures the Secretary considers appropriate to improve service levels and/or reduce consumer costs. The notice explicitly mentions activities such as marketing and promotion (including advertising and public relations) and better utilization of airport facilities as examples of allowable approaches. Importantly, communities that currently have no commercial air service are still eligible to apply, which allows places trying to regain service to compete alongside places trying to expand or stabilize existing service.

Eligibility also depends on the size of the airport. The airport serving the community or consortium cannot be larger than a “small hub” airport, using the FAA’s most recently published hub classification that is effective as of the application deadline. This focuses the program on smaller markets rather than airports already serving large passenger volumes. Finally, USDOT signals typical grant performance periods by project type: about three years for studies, four years for marketing and promotion efforts, and up to five years for projects involving revenue guarantees, subsidies, or other financial incentives. The opportunity listing identifies the sponsoring office as USDOT’s Office of the Under Secretary for Policy and references a closing date of July 25, 2024 for the posted opportunity (DOT OST 2024 0066; CFDA 20.930).

  • The 69A345 Office of the Under Secretary for Policy in the transportation sector is offering a public funding opportunity titled "Small Community Air Service Development Program" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 20.930.
  • This funding opportunity was created on 2024-06-10.
  • Applicants must submit their applications by 2024-07-25. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $12,000,000.00 in funding.
  • The number of recipients for this funding is limited to 40 candidate(s).
  • Eligible applicants include: Others.
Apply for DOT OST 2024 0066

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