How are PFCs approved and tracked?

• A. Airport sponsors decide unilaterally how PFC funds are spent.
• B. Airport sponsors apply to the FAA for approval; funds are collected and used for eligible projects.
• C. PFCs are approved by state governors.
• D. PFC funds are allocated by the TSA.

Answer: (B)

PFCs are approved and tracked by the FAA. Airport sponsors submit an application to the FAA detailing the proposed eligible projects and the PFC amount, and the FAA reviews and approves the program. Once approved, funds are collected from passenger charges and must be used only for the approved airport-improvement projects. The FAA, along with the airport sponsor, keeps records and conducts reporting and audits to ensure funds are spent on eligible projects. This process isn’t governed by unilateral sponsor decisions, state governors, or TSA control.