Asset recycling Airports to Fund Infrastructure

What’s happening? A new study by Reason, SHOULD GOVERNMENTS LEASE THEIR AIRPORTS?, says 31 airports could free up $131 billion for infrastructure improvements in local governments. It works by a local government leasing or selling its airport, a revenue-producing asset. Congress’ 2018, The new Airport Investment Partnership Program, allows cities to enter into public private partnerships for their airports. Those lease proceeds can then be used as general revenue.

Why is this important? Cities have seen revenues impacted by the pandemic and this would provide access to new general revenue without raising taxes.

How will this be important? Look to the 3 most likely leases: global airport companies, infrastructure investment funds, and public pension funds. The value of the 31 airports, including multiple in Texas and California, can be found here.

Reason | Study: Leasing 31 U.S. airports would generate $131 billion to fund other infrastructure and pay debt

Governing | Why Big-City Airports Are Prime Candidates for ‘Asset Recycling’