State Aid Grant Program

The State Aid Grant Program is administered by the Nebraska Department of Transportation Division of Aeronautics in coordination with the Nebraska Aeronautics Commission. The program is designed to support the development, maintenance, and improvement of public use aviation facilities across the state of Nebraska. It operates using funds derived from aviation fuel taxes and aircraft-related sales and use taxes, which are reinvested into the statewide aviation system. The program plays a key role in sustaining airport infrastructure and enhancing economic development through improved aviation access. The primary objective of the program is to provide financial assistance to municipalities that operate public use airports. Eligible applicants include airport authorities, cities, counties, and villages that maintain licensed airport facilities in compliance with Nebraska Administrative Code requirements. The program supports a wide range of aviation related projects, including infrastructure improvements such as runway rehabilitation, lighting systems, navigational aids, land acquisition, and planning studies. Projects must align with the Nebraska System Plan and be capable of completion without undue delay, ensuring that funded initiatives are both strategic and feasible. Funding is distributed through three main allocation types: State Aid Only Grants, Federal Matching Grants, and Primary Airport Allocations. State Aid Only Grants fund standalone projects using state and local resources, while Federal Matching Grants supplement federally funded projects by reducing the local cost share. Primary Airport Allocations provide dedicated funding to commercial service airports with scheduled, non subsidized flights, recognizing their broader economic impact. Funding limits vary by category, with typical reimbursements covering up to ninety percent of eligible costs for certain projects, while others such as land acquisition or terminal buildings may be limited to fifty percent. Annual caps generally apply, with most airports eligible for up to three hundred thousand dollars per fiscal year, subject to exceptions for large scale runway projects. The application process requires submission of a formal request using the official State Aid Project Application Form. Applicants must provide detailed project information including description, cost estimates, funding request type, and justification outlining safety, longevity, and community benefits. Additional required materials include sketches, photographs, supporting documentation, and letters of support. Projects requesting more than fifty thousand dollars in state funding must include a qualified engineering consultant. Completed applications may be submitted electronically or via postal mail to the Division of Aeronautics. Applications are due annually by September 1, and all submissions are reviewed and presented to the Nebraska Aeronautics Commission during its October meeting. Applicants or their representatives are generally expected to present their projects during this session. The Commission evaluates proposals using a prioritization methodology matrix that assesses project eligibility and overall benefit. Final funding decisions are made by the Commission, and applicants are notified following the meeting. Once approved, projects must meet strict compliance requirements, including adherence to airport layout plans, procurement standards, and contractual obligations. Funded projects operate on a reimbursement basis, meaning sponsors must initially cover costs and submit documentation for reimbursement. Eligible expenses include engineering, construction, and administrative costs, provided they align with program guidelines. Projects must begin within a specified timeframe, typically requiring an executed construction contract within eleven months of funding allocation. Extensions may be granted under certain conditions. Final project closeout involves submission of detailed cost summaries, supporting documentation, and verification of compliance with all regulatory requirements. The program is offered on a recurring annual basis, with consistent deadlines and review cycles. Applicants are encouraged to coordinate early with Aeronautics staff to ensure project readiness and compliance with all technical and administrative requirements. Questions and support are available through the Division of Aeronautics, with direct contact provided for program guidance. Overall, the State Aid Grant Program serves as a critical funding mechanism for maintaining and advancing Nebraska’s aviation infrastructure and supporting regional economic growth.

Provide strong justification aligned with safety economic impact and system planning priorities Ensure all required documentation including consultant details and supporting materials are complete and submitted before deadline