FAA Has Made Progress Verifying Compliance With Aviation Fuel Tax Requirements, but Challenges Remain With Testing and Enforcement

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A 2023 federal audit found that the FAA has made progress confirming whether state and local governments comply with rules governing how aviation fuel tax revenue must be used, but has not yet verified that compliant jurisdictions are actually spending those funds on aviation-related purposes. Five jurisdictions remain out of compliance and have not faced enforcement action, largely due to congressional guidance encouraging the FAA to delay penalties. The audit resulted in three recommendations to strengthen FAA oversight and prevent airport revenue from being diverted to non-aviation purposes.

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A Department of Transportation Office of Inspector General audit report examining FAA’s oversight of aviation fuel tax compliance. The report finds that while FAA has made progress confirming state and local government law compliance, the agency has not tested whether jurisdictions use fuel tax proceeds according to approved action plans and has not taken enforcement actions against non-compliant jurisdictions.

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