What must be true for an AIP cost to be considered eligible?

For an AIP (Airport Improvement Program) cost to be considered eligible, it must be necessary and reasonable. This criterion ensures that the expenditures associated with the project are justifiable and align with the project's goals. It reflects sound financial management and allows for the efficient use of federal funds. In essence, costs need to be essential for the project and not excessive relative to the work being performed.

While other criteria could impact the eligibility of costs in certain circumstances, they do not universally define eligibility. For instance, costs incurred before the grant execution date may not be eligible, and there is no specific dollar threshold such as exceeding $50,000 that universally applies. Additionally, compliance with local regulations is important but does not singularly define the eligibility of costs under the AIP framework. Therefore, the emphasis on necessity and reasonableness is crucial in ensuring that the costs are appropriate for the use of federal funds.