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2026 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: McQuinn
Provide Grant Funding to Attract Additional Routes

Item 422 #6h

Item 422 #6h

First Year - FY2027 Second Year - FY2028
Transportation
Department of Aviation FY2027 $3,000,000 FY2028 $3,000,000 GF

Language
Page 502, line 19, strike "$32,262,020" and insert "$35,262,020".
Page 502, line 19, strike "$32,262,020" and insert "$35,262,020".

Page 503, after line 10, insert:

"G.1. Included in this appropriation, $3,000,000 the first year and $3,000,000 the second year from the general fund is provided to attract international flights at Virginia airports. Funds provided in this paragraph shall be used to underwrite minimum revenue commitments for new air service at Virginia commercial airports with international capabilities, with less than 100 current destinations. Funds provided pursuant to this paragraph may be used to offer minimum revenue to air carriers initiating new international nonstop routes or new international destination service at commercial service airports, where such service is expected to produce a measurable economic development benefit to the Commonwealth. Any revenue guarantee awarded under this program shall be (i) limited to a defined term not to exceed two years; (ii) performance-based and payable only if agreed-upon passenger, frequency, or load-factor benchmarks are not met; (iii) require matching funds or in-kind contributions from local governments or private partners, where practicable; and (iv) include clawback provisions if the carrier fails to maintain service for the agreed-upon term.

2. The Department of Aviation and the affected airport authority, shall administer this program and may develop guidelines as necessary.

3. By November 1 of the second year, the Department of Aviation shall submit a report to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees detailing awards made, routes supported, economic impacts, and any recommendations for continuation or modification of the program."



Explanation

(This amendment provides $6.0 million from the general fund over the biennium to incentivize the recruitment of international flights at mid-sized airports by providing revenue guarantees to airline carriers.)