There has been much controversy over the years over the federal government's involvement and financial obligations to the airline industry. Construction of runways and taxiways represents the largest development cost at hub airports, while terminal development is the second largest (Sanchez, 2006). The introduction of the Airport Improvement Plan (AIP) represented the beginning of any significant federal funding for airports and the airline industry. There has been interest in privatizing airports and several attempts. This article will discuss some of the basic information about AIP and airport financing. History The first federal assistance provided to airports or the airline industry was the Works Progress Administration (WPA). Nearly $150 million was spent on WPA airport projects in the 1930s. Airport expenses and financing were considered a local responsibility until World War II. It was during World War II that there was first significant federal support for airport construction. After the war the federal government continued to support airports, but to a lesser extent. The federal government contributed greatly in the 1960s when airports had to be modernized due to the use of commercial jets (Kirk, 2009). The Airport and Airway Development Act of 1970 laid the foundation for the Airport Development Aid Program (ADAP) and the Planning Grant Program (PGP). It was put in place to help fund reconstruction due to congestion problems (Kirker, 2009). The act established the Aviation Trust Fund. The Aviation Trust Fund is the primary source of federal aid to airports (Kirk, 2009). Because of the debate over possible “defederalization” of airports, Congress did not support the trust fund in 1981-1982. The Wendell H. ford Aviation...... middle of document ...... RT Improvement Program (AIP ): Reauthorization Issues for Congress. Retrieved from http://web.ebscohost.com.ezproxy1.apus.edu/ehost/pdfviewer/pdfviewer?sid=b1defdac-0749-4471-82e5-cb516c6a973c%40sessionmgr113&vid=6&hid=127Obama's budget proposes cuts to airport funding. (2011, February 21). Aviation Safety Week, 25(8). Retrieved from http://web.ebscohost.com.ezproxy1.apus.edu/ehost/detail?sid=b1defdac-0749-4471-82e5-cb516c6a973c%40sessionmgr113&vid=7&hid=127&bdata=JnNpdGU9ZWhvc3QtbGl2Z Q%3d%3d#db= tsh&AN =58683575Sanchez, H. (2006, October 27). Airports expect $41 billion in improvements, up from two years ago. Aviation, retrieved from http://web.ebscohost.com.ezproxy1.apus.edu/ehost/pdfviewer/pdfviewer?sid=b1defdac-0749-4471-82e5-cb516c6a973c %40sessionmgr113&vid=10&hid=127Young S. & Wells, A. (2011). Airport planning and management (6th ed.). New York, New York: McGraw Hill