Aviation Fuel Tax Program

The Aviation Fuel Tax Program, administered by the Illinois Department of Transportation's Division of Aeronautics, provides grant funding to public-use, publicly owned airports across Illinois. This program is funded through state revenues and is intended to support airport-related projects that are legally permissible under FAA guidelines. The underlying purpose of the program is to ensure that aviation fuel tax revenues are reinvested into the state’s aviation infrastructure, fostering safe, efficient, and well-maintained public airports that support both passenger and cargo operations. Grant recipients are allowed to use the funds for a broad array of airport-related costs, including capital and operational expenses that comply with the FAA’s Revenue Use Policy. This includes costs associated with airport infrastructure, systems, and maintenance that directly support aviation operations. Notably, municipalities with populations over 500,000 may also use funds for specific purposes such as soundproofing residences under the Residential Sound Insulation Program. However, all recipients must ensure the funds are not used for non-airport-related purposes, as defined by federal law and the FAA policy. The funds may not be used to duplicate expenses already covered by federal relief programs like CARES or ARPA. Eligible applicants must be public-use, publicly owned airports in Illinois that are properly registered and pre-qualified through the Grant Accountability and Transparency Act (GATA) Grantee Portal. These applicants must also complete necessary registrations with SAM.gov, maintain a valid DUNS number, and be in good standing with the Illinois Secretary of State. Both centralized and parent/child local government structures are eligible, provided they meet these registration and verification requirements. Additionally, applicants must complete an Internal Control Questionnaire and Programmatic Risk Assessment as part of their application. Applications are accepted on a rolling basis, with no fixed deadline. To apply, eligible airport sponsors must submit a complete application package via email, which includes the Uniform Application, Budget Template, and Programmatic Risk Assessment. Each document must be printed, signed, scanned, and submitted in PDF format to [email protected]. Applications remain open until further notice, and grant awards are determined based on statutory formula allocations. The grant agreement typically covers a one-year period with two optional one-year renewals. The program's funding distribution is based on a formula that considers enplanements, total cargo, and airport operations. The Illinois Department of Transportation will notify successful applicants with a Notice of State Award (NOSA) after reviewing their complete application materials. Reporting requirements include quarterly financial and performance reports submitted via the BoBS 2832 Reporting Form. Recipients who fail to comply with these reporting requirements may experience delays or suspensions in funding. This grant program does not require cost sharing or matching funds, and indirect costs are allowed with no restrictions. The total estimated program funding is approximately $19.96 million, with 77 awards anticipated. There is no minimum or maximum award amount stated. The opportunity remains active as of February 20, 2026, and while it is currently ongoing with no due date, there is no stated recurrence frequency. Interested applicants are encouraged to monitor the funding portal and reach out to program contacts for any updates or clarifications.