What is the funding distribution method called where states allocate AIP funds to specific airports?

The funding distribution method referred to in the question is known as a block grant. This approach allows states to receive federal airport improvement program (AIP) funds and subsequently determine how to distribute these funds among various airports within their jurisdiction. By using block grants, states have the flexibility to allocate resources based on their specific needs and priorities for airport development and improvement projects.

This method contrasts with other funding mechanisms like entitlement grants, which allocate funds to eligible airports based on a formula, typically tied to specific airport characteristics, such as passenger numbers or service levels. Discretionary funding, on the other hand, is provided at the federal level and is often competitive, requiring airports to submit proposals for consideration based on merit, rather than receiving automatic allocations. Set-aside generally refers to a predetermined portion of funding earmarked for specific projects or types of airports, which does not represent the broader flexibility afforded by block grants.

In summary, the block grant method empowers states to manage and distribute AIP funds in a manner that aligns with their individual airport priorities and development strategies.