What happens when an airport accepts federal grant money?

• A. The airport becomes part of a state budget.
• B. The airport becomes a closed fiscal system.
• C. The airport must privately fund future projects.
• D. The airport loses eligibility for future grants.

Answer: (B)

Accepting federal grant money imposes grant assurances that require the funds to be used only for eligible projects and to be tracked and reported under strict conditions. The money becomes restricted to the grant’s purpose, and accounting for it must be kept separate from the airport’s general funds, with appropriate records, oversight, and audits. In practice, this creates a controlled, “closed” fiscal environment for the grant, where how the dollars are spent and what they can fund are tightly governed.

This is why the answer describes a closed fiscal system as the result of accepting federal grant money. It’s not about automatic inclusion in the state budget, it doesn’t mandate private funding for future projects, and it doesn’t make the airport ineligible for future grants as long as the grant terms and compliance requirements are met.