49 U.S.C. § 47108 — Project grant agreements

(a) Offer and Acceptance — Once the Secretary approves a project grant application, the Secretary must offer the sponsor a grant to pay the government's share of the project costs allowed under section 47110. The Secretary may attach terms needed to carry out this subchapter and its regulations. The offer must state the obligations the sponsor is taking on and the maximum amount the government will pay, from amounts authorized under chapter 481 (except sections 48102(e), 48106, 48107, and 48110). If the sponsor requests it, and the project will not finish in one fiscal year, the offer must let the government obligate amounts apportioned, or to be apportioned, to the sponsor under section 47114(c) or (d)(2)(A) across the fiscal years needed to pay the government's share. Once the sponsor accepts the offer in writing, it becomes an agreement binding on both the government and the sponsor. The government may pay, or be obligated to pay, a project cost only after this grant agreement is signed.

(b) Increasing Government Share — (1) In general: Except as paragraph (2) or (3) allow, the maximum amount stated in an accepted offer may not be increased. (2) Exception: For a project receiving assistance under this chapter or chapter 475, the maximum may be increased (A) for an airport development project, by not more than 15 percent, and (B) to acquire an interest in land for an airport, other than a primary airport, based on appraisals at the time of acquisition or a court award in a condemnation proceeding, by not more than the greater of (i) 15 percent, or (ii) 25 percent of the total increase in allowable project costs attributable to acquiring that land interest. (3) Price adjustment provisions: (A) In general: The Secretary may include a provision in a grant agreement letting the government pay more than the stated maximum if the Secretary finds commodity or labor prices have increased since the agreement was made. (B) Decrease in costs: Any such provision must also ensure the Secretary benefits financially if material or labor costs for the project decrease instead.

(c) Changing Workscope — With the sponsor's consent, the Secretary may amend a grant agreement to change a project's workscope, as long as the change does not increase the maximum amount the government may pay under subsection (b).

(d) Change in Airport Status — (1) Changes to nonprimary airport status: If a primary airport's status changes to nonprimary while a development project under a multiyear agreement under subsection (a) is not yet complete, the project stays eligible for discretionary funding under section 47115, at the funding level and terms the agreement provided, subject to funds being available. (2) Changes to noncommercial service airport status: If a commercial service airport's status changes to noncommercial while a terminal development project under a phased-funding arrangement is not yet complete, that project stays eligible for discretionary funding under section 47115, at the funding level and terms the arrangement provided, subject to funds being available. (3) Changes to nonhub primary status: If a nonhub primary airport's status changes to small hub primary while it has an unfinished terminal development project, under section 47119(a), that received discretionary and small-airport funds, the project stays eligible for those funds to pay costs allowable under section 47119(a) — for three fiscal years after construction starts, or longer if the Secretary decides an extension is justified, until the project is completed.